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10 Things You Can Do To Get More Financially Stable

10 Things You Can Do To Get More Financially Stable

I’ve noticed over the past few weeks that there has been more talk in the financial news about the possibility of another recession. Apparently the yield curve inverted for the first time since 2007, and this financial event usually predicts that a recession is coming our way.

For 2019, the outlook does remain positive: the International Monetary Fund is convinced that there will be a slow down but not a recession, and 96% of Wall Street professionals that were surveyed by CNBC do not predict a recession before the summer of 2020. However, three quarters of business economists are predicting a recession by 2021.

When there is financial instability in the world around you, then a good response is to ensure that your finances are as stable as possible. So what can you do to get ready for a recession?

In my opinion there are 3 areas to look at:

  1. How much you are earning

  2. How much you are spending

  3. How your money is working for you

How much you are earning

Earning more money is one way to help stabilize your finances, and there are a few ways you can do that:

1. Get a better paying job.

If you’re not sure how to get started on a job search, then check out this 6-month roadmap to a better job, and these job hunting tips to help you up your game in 2019.

2. Negotiate a pay raise.

Since unemployment in the US is very low and job retention rates are going down, it may be a good time for you to start negotiating a pay raise. Need some guidance on how to do it? Money.com has some great tips.

3. Get a side hustle.

Another way to earn more money is to take on a second (or third!) job. Recruiter.com has some good advice on how to get started, and if you’re not sure what to do here’s some side hustle ideas.

4. Sell stuff.

We all have stuff lying around that we no longer need or use so why not try sell them and make some cash. Check out my posts on successful selling part 1 and part 2.

How much you are spending

Another great way to make your finances more secure is to reduce how much you are spending.

5. Track your spending.

How do you know that you are spending less than you earn? Track it. A good way to do this is to create and maintain a budget so you can see exactly how much money is coming and going out each month. Check out these 3 ways to budget to get you started.

6. Review your spending habits.

Once you do start tracking your expenditures you will start to see where your money is going. This means you can see if there are any areas where you can save money. For example here are 10 common habits that may be costing you money , and some ideas on how to spend less when you’re out shopping

7. Pay down debt.

According to the Simple Dollar: “an average American family with a mortgage on a median-priced home, at least one car payment, an average student loan burden, and just one credit card with an average balance… could be paying $8,037 or more just in interest each year.”

Which means that reducing and ultimately eliminating your debt could save you a lot of money!

8. Have an emergency fund.

If you have a financial emergency how do you pay for it? Having an emergency fund means that you may be able to avoid going into debt to cover unforeseen costs. If you don’t already have an emergency fund, here’s some details on how to get started.

9. Stay healthy.

A recent survey found that about 1 in 8 Americans have had to borrow money to pay for a medical bill in the past year and the total amount borrowed is a staggering $88 billion! So eating and drinking healthily, exercising regularly and generally taking care of yourself could really pay off.

Make your money work for you

When you do spend less than you earn you can then make that additional money (otherwise known as savings) work for you.

10. Save and/or invest.

Don’t just keep your money in a jar – get passive income with a savings account or CD that will pay you interest on your money.

Investing your money is another way to make your money work for you but it has higher risks. If you’re new to investing then find out more about the basics of investing, and if you do seek financial advice from an specialist, make sure they are a fiduciary - this means that they will act in your best interests rather than being driven by other considerations like the best commission for them!

What other ideas do you have for getting more financially stable? What’s worked for you? Share below…

If you don’t ask, you don’t get…

If you don’t ask, you don’t get…

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