2 secrets to financial stability

The two time-tested secrets to financial stability are saving and discipline. You cannot be financially stable or free from debt if you cannot control your spending habit. To be free from financial problems you must also live within your means; more spending equals less money in your pockets.

To be able to save a lot, you will have to sacrifice a lot of luxury. Research has shown that millennials are the highest spenders followed by the generation before them. Getting out of debt is a conscious decision you need to make. Maintaining a savings or personal finance principle for unpredictable times is crucial to having a happy and prosperous year.

These 9 tips can help you to become financially free this year:

• Save with a goal in mind such as an emergency, old age, retirement, education, that luxury holiday or gift you want to buy for yourself or someone, your own house, car etc.
•  Look for opportunities that help you earn money (other streams of income) and save a percentage of it.
• Have a plan of how you are going to save out of every amount that comes in. 10% is a good start but you can do more depending on your goals.
• Prioritize your needs, spend more on what you need than on what you want.
• Avoid buying on credit. NO more payable when able. Sometimes your emotions make you buy on impulse.
• Live within your means.
• Learn to do things by yourself. You will be amazed at how much you can save when you do some things by yourself.
• It’s OK to be a little stingy with your money.
• Be financially literate. I know, they sound so technical and drive us all away but try taking a little interest. The little you learn can help you a lot.

Image credit: Nataliya Vaitkevich

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