Guest post by Megan Stevenson
It is an unpleasant feeling to carry around nagging worries about financial stability. Many find it helpful to think of financial health in a similar way to physical health: just as you would go to a doctor for a check-up, you should take the time to check up on your finances and come up with plans to reach your financial goals. These are the key aspects to keep an eye on.
Assess your standing
Before you can make plans and set goals, it is essential to be candid about your starting place. You might wish to appraise where you have been doing well in terms of savings and income, and areas where you feel you can make changes to improve your standing. For a comprehensive assessment, you may wish to evaluate your net worth in its entirety, and it is recommended that you do this when time allows. From here, the key thing is to compare your incoming and outgoing funds. Once you know the truth about this ratio, the more empowered you are to make informed decisions based on your financial situation.
Widen your income
It can be daunting to think about creating new income streams outside of your main job, but in such a connected world, it doesn’t necessarily take much to bring in some revenue on the side. You may have skills or hobbies that bring you funds, for example, you might offer guitar lessons or make handmade souvenirs. Alternatively, you may have property you can rent out. Indeed, you may want to consider other options that increase your resources, such as an equity release mortgage.
Stick to budgets
Going over budget can wear away at your self-trust. The crucial thing is to be realistic about your budget. If you try to discipline yourself to stick to the same budget in December, around Christmas time, as you do in January, for instance, you may find yourself breaking budget. And so, it’s recommended that you devise short and long-term plans with your budget so you can accommodate exceptional circumstances, while also having confidence in the future.
Pay off debts
Paying off debts sooner will save you money on interest in the long run. But this is not always possible. It is worth prioritising your debts and getting in the habit of apportioning funds to pay them off regularly. You will thank yourself for this when you approach retirement.
Getting financially stable is a goal that many people share. It can seem daunting, but it’s achievable in most situations. And by following the guide above, you should be all set to move closer towards this goal.
