“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life” – Suze Orman
Of all things in life, finance plays a dominant role, irrespective of a person’s age. While the needs and wants vary, one factor that remains constant is the need for money. It’s fair to say that the exact amount of money needed for future cannot be predicted, but it’s feasible to strive for some sort of stability. So what does financial stability imply? As exhaustive the term is, for me it means to be independent of expenditures, safeguarded for the future, cushioned for any contingencies and subsequently, leave aside a considerable amount for the next generation.
So how do we achieve financial stability? While it differs for each individual depending on their lifestyle, a few pointers to be considered:
- Saving is a habit, not a onetime effort: Much has been said about the art of saving…when to start, how to bucketise etc. Whatever be the approach, focus is on consistency. Budgeting and setting aside a sizeable amount at the start of every month will yield better fruits than saving what’s left after all the expenses.
- Diversify portfolio and Invest wisely: It’s sensible to spread the risks and have a diversified portfolio of varied yields., E.g., long term monetary returns, liquid cash for emergencies, investment in real estate etc. Irrespective of the nature, being overly independent on one form is never a good option.
- Avoid comparison: Despite the reality, there is a perennial need to compare our lifestyle with others and indulge in things we don’t need. It’s prudent to avoid such unwanted competition and spend only on those that add value.
- Consider inflation: Although it seems that the current mode of investments will pay off in future, do consider the inflation. Few expenses might skyrocket in the years to come, so plan ahead and brace for such impacts.
Coming to the most pertinent question, what does financial stability offer? To sum up the most significant aspects:
- Provides an oomph of confidence: A well cushioned monetary portfoliothat provides for present as well as future needs is certainly a morale booster. In a cash crunch, it’s good to have some savings to bank up on, rather than depending on external ways to source money.
- Increases self-esteem: To be independent of others for financial needs will result in immense satisfaction of a life well planned. Having money also gives the independence of decision making, which is vital for the self-esteem of an individual.
- Peace of mind: To be free of monetary tensions is a blessing. While we can’t zero out the possibility, it’s intelligent to stay equipped for any eventualities that might arise.
In today’s world, women play notable role in various spheres, donning different hats in their lives. Hugely independent unlike yesteryears, women earn substantial income and share the economic burden. It’s only fair that such hard earned money is put to good use and saved for future needs. As it’s said “Save money and money will save you”.
You may also want to read other articles written by the author: ‘Stop limiting yourself‘, ‘Doing what you love – hobbies and passion to opportunity‘, ‘ Maximise your productivity to unleash your potential‘, ‘Be your own boss‘, ‘Broaden your intellectual horizon‘, ‘Career metamorphosis – Expert to beginner’, ‘Importance of networking for success in your career’, ‘Busy Day vs Productive Day‘, ‘Money matters for womens financial independence‘, ‘ ‘Being overlooked for promotion‘ , ‘Addressing the gender paygap disparity ‘ , ‘ The art of saying No at work‘ , ‘ Reviving from an unfavourable performance appraisal ‘ , ‘Dealing with a difficult boss‘ , ‘The performance punishment’, ‘Strategies for Career goals’
About the author:
Nithya Jagadish –
I am a commerce graduate with an overall experience of 10 years in the Corporate Industry and handled diversified assignments at HSBC and Hewlett Packard. After gaining considerable knowledge and success during my tenure, I decided to focus my attention on other areas of interest. Now, a doting mother of a one year old, I spend my day reading, apprising on my topics of interest and baby-sitting.
An avid reader and poetry enthusiast, my love for writing started while at school and my dreams have borne fruits after motherhood. I strongly believe in living life to the fullest and making the most of each beautiful day.
(The author is a guest blogger at Her Second Innings. The opinions expressed are those of the author.)
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