Life transitions come in a variety of shapes and forms. Though they share one common trait in impacting finances.
Everybody wants the security of financial stability, to sleep well knowing that you and the family can continue living a comfortable lifestyle. Don’t let the circumstances you cannot control influence something you can.
3 Ways to Maintain Financial Stability
While dealing with any type of major life transition, whether you lose your job or make a drastic move, you want to make proactive changes before the crisis forces you to change reactively.
Follow this financial advice to keep your finances stable during trying times.
1. Create a Plan
During big transitions, people often fixate on the present and lose the big picture. In doing so, they may spend more than they have and quickly lose stability.
Financial planning helps you meet your goals by determining your short term and long term ideals and creating a balanced plan with them. This helps to keep the future in mind while navigating needs and wants in the present moment.
Doing this on your own, especially while stressed, this can feel overwhelming. Seek out help from 2nd Opinion Partners for sound financial advice that will help you create a solid plan.
2. Implement Necessary Lifestyle Changes
Try not to view financial stability as continuing to live with the same luxuries as before the transition. Rather, accept it as keeping you from constantly struggling and gracefully change with it.
For instance, if you receive a large pay cut, you may need to cut down on fancy dinners and family vacations. This can feel shocking.
Learning to change the way you budget might avoid needing to change the way you live too much though. Price shop, watch for good deals, use credit cards that offer points, and check out free events.
Some situations may require actual cuts. In that case, one of the best financial tips is to sit down as a family and prioritize all of the extras you enjoy. You may find that some of your expenses come out of tradition more than enjoyment.
3. Keep Expenses Manageable
This may seem like a perfect time to make big purchases while the money is there or open up large lines of credit because it’s not. Both impulses can dig you into a deep hole.
Try your best to only spend what you physically have. And, try not to spend all of it.
For instance, big transitions can force you to move. Learn how to budget in your new lifestyle. It may mean downsizing if you lost a job or divorced your partner.
Fight the temptation to live as you did if it does not suit you. Financial experts say that your housing expense should not exceed 30% of your income.
Remember, throwing it onto a credit card that you cannot pay off does not actually increase your assets. It only builds your debt.
Live Your Best Life
Living your best life does not always mean living like the 1%. It means doing the best you can at your stage of the transition.
We want to see you live well and build your financial stability so that you can eventually get back on top. Start earning money with us to get yourself where you want to be.