It is possible to become financially stable. Life brings inumerable challenges, but it is possible to get stability.
This most recent year has been one of damage, destruction, and setbacks. Millions have beeon infected with the Covid virus, many have died; millions have lost their jobs, their livelihoods, their businesses. It seems many are now focused just on survival.
In such circumstances, where survival is the primary objective, it may not seem helpful for generalized statement of stability. But it is necessary to keep a longer perspective in mind. So it is in that idea that we review some of the basics.
First, when possible, live below one’s means. While this may not seem within the realm of possibility when basic survival is the primary goal. But when there is some breathing room, the basics should be remembered. Live below one’s means.
Second, save what is not spent. Because a person lives below their means, there is a portion of income that is not spent. The portion should be saved.
Third, build an emergency fund from the saved money.
Fourth, invest a portion of one’s saved money.
The steps are simple to describe, although not always easy to adhere to.
If the invested money is invested safely and properly, one can later see a return on one’s investment. This adds a buffer of comfort to one’s situation. There are few more feelings of safety and security than money in the bank, and income from one’s investments. It can be done.
What is your opinion? Let me know here.
The illustration is from “Structure of the Mammalian Retina,” ca. 1900, by Santiago Ramón y Cajal (1852-1934). He was a Spanish physician who won the Nobel Prize in Medicine in 1906 for discovering the mechanisms that govern the morphology and connective processes of nerve cells.
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