How To Stay Fashionable And Maintain Financial Stability
As lovers of all things fashion, we know too well how much things can cost! So ensuring we have the means to keep up to date with the latest trends and keep our finances in check can be a tricky tightrope! In my latest lifestyle blog post, I offer a few suggestions to help with this goal.
Financial stability is important in all walks of life (not just lovers of fashion), so building a solid platform to protect yourself from being snowed in by debt or struggling to make ends meet is crucial. Of course, in life, things can happen out of your control (especially money issues!), but there are certain steps you can put in place to help –
Outline Your Financial Goals
Money stability differs for everyone, and only you can define that goalpost. For your unique circumstances, you need to note what goals you want to achieve and how you can move forward and plan with your current and future finances.
For example, you could plan to be debt-free a year from now or perhaps are looking to reach a certain savings target. Another option is to focus on only using the money you have coming in each month and not relying on any credit.
Create A Budget
Budgeting is a great step to improve your daily life, showing you a clearer picture of your financial situation, which will clarify which areas need any improvement. You can even use an online budgeting template to jot down your income and outgoings per month, helping you to keep a check on your spending patterns which may show you what needs improvement or optimised.
If you realise that your outgoings are higher than your income, you must act and see what can be cut to fix the problem.
Tackle-high Interest Debts
Debt can be something that overhangs anyone, especially if the interest is high and you feel you are just throwing money away (and the balance does not get any lower). Your disposable income is drained constantly, leaving no room to spend anything on yourself or others. How the world is right now, interest rates are typically high for all sorts of debts (credit cards, loans, catalogues, payment plans etc.), constantly damaging you financially but also mentally.
It is sound advice to prioritise debts by size and interest rate, concentrating on the larger ones first. Focus on the end goal of no outstanding debt, no interest and more free money for yourself, and a huge weight will be lifted off your shoulders.
Build Your savings Or Investments
Once you are finally free of debt, the next step is to focus on building savings, a fantastic financial cushion to help protect against any unforeseen events the world can throw at you.
Put aside a fraction of your monthly income into a savings account; one of the better ways to save is to use cash ISAs that offer tax-free growth. Alternatively, opt for flexible access savings accounts with great interest rates or even the potential for robust returns through bonds. You could even go down the investing route, which is a very risk-reward path, but can potentially provide a high level of big returns.
Educate Yourself About Finance
Take some time to learn more about the financial world; this knowledge is invaluable and will impact how you can achieve your goals much easier. Educating yourself can be free, but lessons learned are priceless and will always be relevant. Check out the book – The Psychology of Money by Morgan Housel (as a good starting point) or even online podcasts by the famed money expert Martin Lewis.
With these few extra steps under your belt, you will be well on your way to financial stability, allowing you more free-spending cash for those impromptu shopping trips at the local designer outlet for that new outfit!
What are your thoughts on my new article discussing money and stability? If you want to see more content like this, please let me know in the article’s comments section below.
