One of the hardest things to do in this commercialize world is to be financially stable. Even with very substantial earnings people still would end up trying to make both ends meet. Perhaps this is the reason why stability in one’s financial situation is always compared to having the best physical, mental and emotional health. Both are very hard to achieve. However like having a good health, financial stability would only require the individual to stick to the right program in handling his or her finances.
Management and Control
Good management and control of your income and expenses is the best and only way for an individual to have a healthy financial stability. This statement can be summed up with one word and that word is Budget. Budgeting is the only way that will lead you to financial stability. Analyzing and thoroughly studying your monthly cash flow will bring you to a systematic approach on how to spend your cash. This is especially true for fixed income earners. You can always start by studying your spending needs and habits. Make a complete list of all of your expenditures and compare them to the income that you generate each month. The ideal result should be a surplus left with you after all expenses have been paid. A balance income and expense is acceptable but this is like walking on a tight rope. You need to study your expenses and find out where you can cut down on your spending. If you need extra cash, avoid BORROWING Money from a MONEY LENDER and instead rummage through your old things. You may discover that you still have valued assets which you can sell or pawn.
Where does your Money Go?
Once you have put down on paper your final income and expense analysis, make sure that you know where your money goes. When you start spending, make sure you get a receipt for all your expenses. For those that can’t be covered with a receipt, write it down the amount spent on a piece of paper and keep it along with the other receipts. Remember that any amount that you can trim off your budget will always be a big help in the long run.