How to Be Financially Stable—and Not Just Surviving

When you're financially stable, you don't have to worry about how to pay the bills. You don't need debt relief, and you can afford the things you need to buy. 

Becoming financially stable doesn’t usually happen overnight, but everyone can aim for stability on a timeline that works for their circumstances. You just need to be patient, and take the right steps to get there. 

Here’s how.

Take Control of Your Money

If you don't have a solid plan for your money, you end up winging it. That can lead to spending or saving that doesn't align with your values and goals.

If you want your money to work for you, and you want to pay off debt or save, give your dollars jobs. This means creating a budget plan to decide how much to spend on things like food, housing, and entertainment.

Do more than just make a budget, though—commit to deciding what should happen to each dollar rather than just spending as you go. Track spending, making sure you stick to your limits, and set up automatic transfers to savings. 

Ideally, your budget also creates a surplus between what you earn and what you spend. You don't want every dollar going out the door. Keep some of that money for yourself to build the security you deserve. 

While a common recommendation is to save 20% of your income, it might take time to work up to that. But if you start saving even $10 per week, that's money that's for you instead of your creditors or your landlord. Having that extra could go a long way toward making you feel more stable.

Say No to Unnecessary Purchases

For most of us, there's not an unlimited amount of money to spend. So say no to unnecessary purchases that would mean borrowing money. 

When you borrow, even with 0% financing, you're committing to a payment. The 0% deal may not pan out at truly 0%, because there is often fine print. Even if you don't pay interest, committing future income to past purchases makes living within your means harder. 

For anything non-essential, buy it only if it's in your budget and you've saved up enough to pay for it upfront. Committing to this rule could help you live within your means and use your money well. 

Make Decisions Focused on the Future

When you decide what to do with your money, it's far too easy to focus on what makes sense right now. For example, renting a bigger apartment might improve your life today, so you may be tempted to go for it.

Think about not just what's best for today, but what's best for you over the long term. If you commit to that bigger apartment, it could be harder to invest for retirement in your 401(k) plan. A bigger apartment could cost you the chance at financial freedom later.

You can still enjoy your life by planning for expenses. For example, you can build money into your budget for the occasional splurge, and you can save up for big trips. But you may need to get there by giving up eating lunch out for a while. 

Setting medium- and long-term goals could help you shift your focus to building the financially secure future you deserve. 

Plan to Create a Financial Cushion

Finally, develop a plan to create a financial cushion. This means building an emergency fund, ideally with several months of living expenses.

An emergency fund is your buffer against the world, a way to help make sure surprise expenses don't throw your finances out of balance.

Most of us can't save up an emergency fund immediately, but that’s okay. If you start by saving a little bit each week, you could eventually become more prepared for unexpected expenses. 

Think about the long term, and every day could be a small victory that builds toward a larger goal and gets you to the security and stability you deserve.