The fluctuating world economy has had many individuals and families in a tight corner and drowning in debt. Financial safety is being able to have your own money to manage despite any economic situation. This can be achieved by having knowledge of how you earn your money, how often, how it is spent and your saving abilities.
Besides that, these six steps will also help you to be one step ahead when it comes to financial safety.
1 Have a Regular Stable Income
In order to be able to save money sufficiently, your income has to be regular. This allows you to financially plan ahead.
In order to have a stable income, you’d need to get a stable job, business or investment.
2 Separate Needs from Wants
Sometimes there comes a blurred line between what we want and what we really need. Put your needs first and if attending to your wants will keep you from saving, it’s best to put off your wants until you have sufficient funds to satisfy them.
Needs are the essentials that are necessary to live such as shelter, clean water, clothes and commute to name but a few. Wants are things you desire but don’t necessarily need in order to survive.
3 Take Calculated Risks
Assets, investments and business you have could either get you a step up a financial or keep you at the bottom. As they say ‘don’t put all your eggs in one basket’ therefore when it comes to the risks you take, be sure to leave some money to help you back on your feet.
Taking no risks with your finances could also prove dangerous so if you are not sure what to do with it or you don’t trust your risk-taking simply put your money in a trustworthy Bank.
4 Lend More Than You Borrow
If you borrow more than you lend, you may end up burying yourself and your dependents in a burrow of debt which is the highway to bankruptcy. The thing with being blacklisted for bankruptcy is that even if you manage to unbury yourself from that debt, the stain remains.
Lending sufficiently is a way to save cash that you could have otherwise used. However, be cautious about lending to people who never pay back. And also be wary of lending all that you have.
5 Save Something from Each Income
If you could save even a 1% of no matter how much you get, whenever you get it. It could accumulate to a fortune if you save it for a long period of time. In order to do this successfully you need to set a goal.
Save your money in a place you wouldn’t have frequent access to withdrawing it.
6 Plan for Emergencies
Life is full of the unexpected and most of those unexpected catch our finances by surprise. Therefore when you save, separate the saving money from that of emergencies. This allows you to maintain your savings even when you are faced with crises.
Money is important for our day to day life but it is important to remember that money is not everything. While we can use our finances to make the world a better place, it is the humanity in us that makes all the difference.
Giving even when we do not have more than enough is what has helped many human beings survive to this day. So give to your local charity, give to your congregation, give to your club, give to the poor widows and orphans, give to the foreigner, give, give and give not only your money but also yourself and we will be one step close in making the world a better place for all of us.
It starts from our families, to the society and then extends to the world.
Be financially safe.