4 Tips for Securing Financial Stability

Obtaining financial stability and eventually, financial freedom, is the goal of many hardworking people.

Recent events have brought home the need to be independent of employers who expect loyalty from their staff but give little to none in return. Clearly, that’s a model that works for companies, but far less so for employees, who can be handed their notice with little advance knowledge that it’s coming.

One of the lessons this year is that we all need to take care of our financial stability and not rely on a single solution, provider, or employer to ensure it.

In this article, we provide 4 tips on securing your financial stability for a brighter future.

 

1.  Diversify Your Income Streams

While it is isn’t easy to find the time to start and create several income streams, it’s a necessary process to remove the complete dependence on a single employer.

Don’t try to create multiple ones all at once. You likely won’t have the spare time to do so, will learn them hastily, and will execute them poorly.

Instead, pick one, learn how to do well at it by modeling other people who’ve been successful at it, and then pursue that one thing. Once you’re up and running and making money, only then start on developing the next income stream.

While it may seem slower to proceed in this manner, the reality is that you’re far more likely to find success with each new income stream. The alternative is to try to learn and start different streams across different areas all at once. That will likely lead to failure and lost money across the board. Don’t do that.

 

2.   Increase Your Profits

It’s not natural to think about profits when you don’t own a business. Yet, we should all think about our working life as a business enterprise to make better decisions about it.

When viewing your working life as a going concern, then creating and increasing profits (not just income), becomes a priority. Accepting minimal wage increases over the last decade has firmly kept the middle-class in America from getting further ahead. There’s no profit in that.

One way to generate excess profits is to consider options trading. There’s been a surge in options trading in the wake of employment concerns and people rightly looking for alternative sources of income to secure their future. It doesn’t take much money to start either, which is good news.

 

3.   Be Consistent

Little is achieved if you cannot be consistent.

Get the basics right:

  • Get to bed early enough
  • Become an early riser
  • Put in the hours necessary
  • Learn what’s needed
  • Execute well and often

Once this is in place, be consistent in your efforts. This is the way to see incremental gains in results. Spotty attention to what you’re trying to achieve towards financial stability won’t lead to reliable outcomes. It’ll just be some good results mixed in with mediocre ones where you weren’t paying enough attention. Avoid this at all costs.

 

4.   Simplify Your Life

The K.I.S.S. Principle is important here.

Aim for simplicity over complexity in your life and any business dealings.

It’s difficult to keep everything stable and working well if you’re overcomplicating everything. Make it a point to strip away complexity wherever you discover it. Avoid believing that being widely diversified is better than four income streams that are well-managed. Trying to juggle 10 income streams is an impossibility for most people.

Building financial stability and later financial independence requires a long, sustained period of growth. Setbacks due to inattention or spreading yourself too thin will not lead to the desired financial stability. Proceeding carefully, learning what’s necessary to be successful, and then executing well is the better path.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.