What is “financial stability”?
Each person has their own opinion and need around what makes their lives financial stable. Some are comfortable with minimal income, a roof over their heads and have little desire for materialistic items whereas some are happiest with brands, high value assets and the comfort of savings for a rainy day. Both are fine and both come with benefits and risk.
The key is to know what YOUR financial stability is and how this can be achieved and maintained. In order to find this balance, there are some fundamental known knowns (remember Chapter 4 “Power of Choice” and Chapter 7 “Problems v Barriers”). The known knowns are based on a simple equation of income v outgoings. If your outgoings are greater than your income, you are NOT stable.
No matter of your financial position, let’s play a game of exponential saving. Exponential – “becoming more and more rapid”.
The rules of the challenge:
Here is an example using repayments off a credit card with a starting balance of -$5,000:
Now, the secret is taking a moment to assess these critical questions:
Seeking the right support is a powerful thing.