Financial stability, is it possible? If you were to ask people this question before the Coronavirus pandemic, many would have said yes. If you were to ask those same people today, would they still yes? What would you say?
Google offered this definition of financial stability as “a state in which the financial system, i.e., the critical financial markets and the institutional financial system, is resistant to economic shocks.”
What if our mind was resistant to economic shocks? If that were the case, we would always have financial stability. Notice that some people are doing better financially than before. Don’t believe me? Look at the toilet paper manufacturers and liquor store companies. They are in higher demand than before the virus.
Why are some people pessimistic while others see opportunity at every corner? What can you do right now to stabilize your finances?
Seven Tips to stabilize your finances.
- Take your finances off autopay.
- Sign up for in-the-mail statements rather than paperless billing.
- Check your credit report.
- Start using cash and give your credit cards a rest.
- Cancel a subscription or two.
- Cancel your gym membership.
- Eat in instead of eating out.
It all comes down to our thoughts. How so? Our thoughts form our reality. In that case, what type of thoughts do you want to be thinking?
Take your finances off autopay. When you self-automate your payments, you are self-automating your money without a second thought. Do you really require or want those services? By taking your bills off autopay for a period of time, you choose to decide later whether or not you want to continue this service.
Sign up for in-the-mail statements rather than paperless billing.
Having your bills in one place rather than potentially getting lost in your email makes a big difference in your finances. Paper statements provide a clear view of your monthly finances and expenses and avoid the out-of-sight, out-of-mind scenario of an online file. Also, you can handwrite notes on paper copies to remind you of questions or discussions you had with the creditor.
Check your credit report.
Check your credit report for free at annualcreditreport.com. Checking your credit report every four months is a health check for your finances. Keeping up to date on the information recorded in your credit report may help keep your credit card interest rates low and build your creditworthiness for the time when you next need it.
Tip. To check your credit report for free, don’t check all three credit reporting agencies at one time. Only check one at a time. For example, in January, check Transunion. In May check Experian, and in September check Equifax.
Start using cash and give your credit cards a rest.
This one may sound like a no-brainer, but if it were that easy, people would not be in credit card debt. When you have cash in your hand, you handle it very differently from when you are paying with a credit card. Hard-earned cash is more difficult to part with than it is to use a hard-plastic status card.
Cancel a subscription or two.
You may have a subscription because you have always had it. But are you the same person today that you were when you first signed on? You may have different interests and different needs. Disconnect a service or two; you can always re-subscribe. Who knows, you may even get a better deal.
Speaking of better deals, call all your subscription providers to see if they will offer you a discount on their service or product. I did, and I am now saving an extra $30.00 a month on my internet. Companies want to keep clients, especially now.
Cancel your gym membership.
Try something new. Why pay for something you are not using? How much is your gym membership costing you, and could you use the money somewhere else? If the answer is yes, check out YouTube for workout options. My personal favorite is essentrics.com. You have one new workout every day for a year, and the cost is only $14.99 a month.
Turn the clock back 10 years, be pain-free, and have more energy with 25 minutes a day workouts.
Eat-in vs. eating out.
One of the quickest ways to help pay off debt is using the money you save by eating at home toward reducing your debt. According to Money Under 30, it costs the average American $250.00 a month or $3,000.00 a year to dine out. Ouch!
Consider the possibilities. Eat better quality food. Spend about the same amount of time to cook your food as you would driving to a fast food joint or restaurant and waiting for your order to arrive. (Don’t forget to add the tip.) Which one will cost you less? And which one will be better for your health?
Not sure how to cook? Go to YouTube, where there’s a chef for everyone. A personal favorite is Chef Fabio Viviani. To him, food is “sexy.” Plus, it doesn’t cost anything to learn from the best.
“What you seek is seeking you.” – Rumi
Financial stability or financial instability? The choice is yours. Remember, where there’s a will, there’s a way. It is 100% possible, even during an economic downturn, to gain and maintain stability for yourself.
If you have questions about this or another article I have written—or if you would like me to write about a specific financial topic—email me at contact@dublinplace.us.