Achieving financial wellbeing should be at the core of every individual who wants to be successful, in their own definition.
If you can relate to any of the following then this article is highly recommended for you:
- You have low emergency fund.
- If you lost your job today, you’d be financially screwed.
- You are not saving for retirement because you cannot afford to or don’t know how to.
- After monthly expenses you have nothing left.
- Money is constantly stressing you.
- You are in a debt crisis.
In a recent conversation with a friend regarding an individual’s success, he argued that not everyone is meant to be successful. That the society has to exist in some sort of an equilibrium, and that explains why everything has its opposite – the rich vs the poor, the most successful vs the less successful, good vs evil, and so forth.
Perhaps, a justification for his thinking might have something to do with the illusion of success. Everyone is caught up chasing the illusion of success, without knowing what exactly they’re chasing after. They have no roads, no plans, no lights, only pitfalls. Everyone wants a good life; live in a good house, take their kids to good schools, buy a dream car or/and a house, live a debt free life and eventually be happy. Some have borrowed to sustain this kind of life.
However, this article does not seek to address the verbosity with which success is defined, but rather to assure you that you can live a comfortable life. The kind of life that you desire regardless of the nature of your profession. It offers to you on a plate, what you’ve been searching for but could not exactly say what it is ‘The Road to Financial wellbeing’.
Financial well being is a situation where you are resistant to economic shocks that may occur. Whether as an individual or as a business. Achieving financial wellbeing should be at the core of every individual who wants to be successful, in their own definition.
The following are 5 things you can do to achieve financial well being.
1. Understand your scope.
Achieving financial stability does not happen in an instant. It’s neither a gamble nor a lottery ticket. Financial well being begins with a detailed plan and committing to that particular plan. It has a lot to do with you as a person than the money you’re sweating for. If you have never analyzed your financial status, then this is the time for you to do it. Start by defining what financial well-being means to you. Then give a realistic picture of your current financial status. Highlight your revenues and re-evaluate your expenses in the process.
2. Develop good financial habits.
In assessing your financial status, do you notice any constraints that you can help resolve? Are you spending high? Are you in debt? Getting out of a borrowed life into a life that you own, begins with developing good financial habits. You can develop good financial habits by, evaluating expenses, controlling your impulse spending, make savings automatic, eliminate and avoid debt at all cost, only except when used for investment, investing in your future, and diversifying your investments.
3. Create a Plan.
It was once said, a journey of a thousand miles begins with a step, so does the road to financial stability. You will not be stable overnight, but having the right financial plan will guide you to stay disciplined. In your plan, every expenditure should be budgeted for. The main aim is by increasing the source of revenues and reducing expenditure. If you are a low-income earner, you can either:
- Ask for a raise at work.
- Work on improving your salary worth.
4. Commit to that plan.
Old habits die hard, but when it comes to financial issues, you should make it personal. During financial plan implementation, you should focus on living below your means, to maximize on savings and investments.
5. Invest in yourself.
The greatest investment that will always pay off is investing in oneself. Your main aim should be on mastering financial literacy, Acquiring more skills to increase your net worth, and be competitive in the job market.
This article was first posted on Fuzu.