4 Do’s and Don’ts of Becoming Financially Stable

It’s extremely important to become financially stable as early as you can in your life. You want to build good habits and avoid getting into financial situations that can be difficult to get out of. Here are 4 do’s and don’ts of becoming financially stable.

Do: Begin saving today

Saving should never wait until tomorrow or next year. If you haven’t already started saving money, start today. You need to add money to a savings account on a monthly basis in order to build up a good amount of savings. It’s so important to have at least 6-8 months worth of living expenses saved up in case you lose your job. This is not something you should put off saving for because a job loss can happen at any time. You also want to save for the future. You have to save for retirement and also things that you may want to purchase one day. If you ever plan on buying a house, you should begin saving for a down payment now. Starting a few months before won’t help very much especially if you’re only able to save a few dollars a month. If you can’t spare a lot of money to save each month, don’t worry, save anyway. Saving $10 each month is better than saving nothing at all.

Don’t: Be an impulsive shopper

If you are the type of person who wanders around the mall and buys things at random, this is a habit you have to break immediately. Shopping is not a good hobby to have. You are only throwing money away when you buy things on impulse. Impulse buys can be as small as a package of gum at the checkout stand or as large as deciding you really need a new laptop because you saw one on sale. Impulse buys are usually things you don’t really need. If you really needed it, you would have made the trip especially for that item. If you think you need something, take the time to research cost and your budget and wait a couple of weeks before making the purchase to see if you still need and want it.

Do: Pay off credit card balances in full

It’s important to pay off your credit card balance in full every month to avoid interest charges and a hit to your credit score. If you find yourself unable to pay off your bill each month, it’s time to lay off the credit card use. You want to have a good credit score, but you also don’t want to owe so much on your cards. If you have more than one or two cards, you might want to hide the majority of them and only keep one on you in case you need it.

Don’t: Use pay day loans

Pay day loans should be avoided at all costs. They might help you out when you are in a tight spot, but the amount of interest you’ll end up paying back is ridiculous. If you use these loans more than once, you will find it difficult to pay off the money you owe as quickly as you’d like. These kind of loans are like traps that you have to fight your way out of.

Even if you’ve gotten into a bit of financial trouble in the past, you can still become financially stable. It does take some dedication and sacrifice, but it will be worth it.