How To Achieve Financial Stability

What is the secret key to financial stability? I wish I could say it’s a combination of jumping on one foot, spinning around 3 times, and getting a full 8 hours of sleep, but unfortunately, there’s no single recipe for success. However, there are key areas of focus that can readjust your financial trajectory.

Acknowledging Financial Divides

Money doesn’t grow on trees (as much as we wish it did), yet it feels like some people live in a forest of financial success while others are left with a single seed and no sunlight or water. The gap between the wealthy and those living in poverty is not only a numerical chasm but a HUGE division in understanding. How can individuals accustomed to financial stability truly understand those living under financial strain? That is the million-dollar question.

Observations from experience

A recent MSN article addresses this topic, drawing insights from an online discussion where individuals shared their experiences with financial deprivation. Author John Schmoll relayed 13 of their top observations about what the wealthy may never understand about poverty.

After an enlightening read-through, two observations stuck out to me: the difficulty of breaking out of financial instability and the fear involved in the process. It’s worth exploring the other points, but let’s unpack these two.

Financial stability

Financial stability doesn’t happen overnight. You diligently save, save, save, until you get a flat tire, your children are outgrowing their clothes, and an unexpected medical emergency hits. What now? It feels impossible to catch a break. That’s why learning to be proactive with your finances is just as important as reactive financial decision-making.

When we say to be proactive, we’re talking about establishing a plan of action before an event happens. You’re ready to expect the unexpected. Here’s a list of proactive action steps you can take today:

Create an emergency fund

Life throws a lot of curveballs! An emergency fund is there to help you manage events that would have otherwise caused financial strain. In short, this is money you specifically save for unexpected events or emergencies like medical bills, job loss, urgent home repairs, and so on. It’s NOT extra cash to spend on the weekend.

Create and stick to a budget

Ugh. Budgeting. Reading that word seems to instantly drain the joy out of life, but budgeting is often the key to enjoyable, smart financial living! If you want to wake up one day with a nice car parked in your driveway, you must start setting aside funds. By adjusting your saving and spending habits now, you won’t feel financially burdened later.

Plan for retirement

Gen Z readers! Don’t skip this point because you’re young, spry, and at the beginning of your career journey. You should start saving for retirement as soon as you can. The sooner you start, the more growth potential your money has. Consider setting up a traditional or Roth Individual Retirement Account (IRA).

1166 FCU is here to guide you toward financial stability. Unlike traditional banks, we offer lower fees, rates that fit your budget, accessible loans, and personal banking resources that meet your needs. You are not alone in this journey; we’re standing by to support and assist you.

Fear

For those living in poverty, looming future payments and unexpected circumstances are urgent and pressing matters. A relentless and consistent fear creates a stream of “what ifs” that harm their quality of life.

In addition to paralyzing financial fear comes the fear of asking for help. Everyone likes to feel secure and self-sufficient, but finances can be confusing and frustrating when you try to conquer them alone.

Put it in perspective; you’ve likely never set up a retirement plan before, and I’m going to bet you’re not sitting around with your friends talking about Roth IRAs on a Saturday night. It’s natural if you don’t feel 100% comfortable managing these foreign topics alone. Asking for help is not embarrassing or weak; it is a sign that you care about your future and are taking wise steps toward achieving financial stability.

We are here to replace your financial fears with confidence. 1166 FCU offers financial guidance and support for all of its members. Our dedicated and understanding team will help you with questions about credit cards, loans, budgeting, or anything you need to address your financial concerns.

Additionally, we recommend that parents take advantage of www.mycreditunion.gov to educate and steer their families toward financial stability.

Start now

The process of overcoming financial instability and fear may seem daunting, but it doesn’t have to be. Start taking small steps now and watch as the light at the end of the tunnel gets closer and closer.

Contact us

Financial stability is a journey, and we are here to help you reach your desired destination.

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