A lot of people would love to become financially stable, sometimes it seems really difficult to achieve it. It doesn’t have to be if you understand the essential principles.
Check how much money is coming in and going out, if the balance is positive you are doing good. The higher your monthly cost is the higher your income should be. The opposite counts as well if you manage to reduce your cost of living you have an easier time to build financial stability. The bigger the difference the balance is the better you will be protected from anything happen around you.
I am indeed rich, since my income is superior to my expenses, and my expense is equal to my wishes. – Edward Gibbon
Important in this equation is that you don’t solely focus on reducing your costs. You are still free to choose where you want to be spending. Make sure to always do things that you enjoy, even if it may mean racking up some extra payments. In the end it is not the money that makes you happy. It is the freedom that you obtain with it and that you can maintain during difficult times.
Are you heavily influenced by the Covid in a negative way? Don’t worry about everything written above right now. Just see this as a moment to regroup everything that you thought before. It may always have seemed that your finances were in balance. However when you happen to lose out on your income it will become really difficult. This is the right time to plan your next steps after you have recovered. Make sure you never have to worry again.