How to be financially stable?

Several days ago user “In Love” published the advice for the younger generation. I shared it on Facebook. The pieces of advice came from the people aged 80-90 years old. The statements were often commented on. After reading some criticisms on the advice:

“Make sure you are financially stable.”

I understood that many people, especially young ones, are living without the hope of being financially steady. 

  1. I wish that more people will be financially secure – I thought – and started to answer to the most negative comments: “That’s a hard one nowadays.” If you think the same – ask yourself: “What will my grandchildren think about life in my time?” People giving the bits of advice were born before the second world war. After the war, the economy was changing. Depending on the country, in one it was easier, in the second one more difficult. Also in the US, where the economy was growing, were people who searched for affordable housing in the suburbs. Tomorrow will be different than today. Now are workplaces that will disappear in 30 years. How difficult it will be for the next generation?
    • Instead of considering current difficulties, look for ways to improve your life. Now, today.
  2. “Says a man who would’ve paid less than 1000 pounds for a house.” If you think the same – ask yourself: “How much will cost current houses in 60 years?” Probably, you think: “How much did the house cost, compared to what I earn now”. Think “For whom were homes available in those days? How much money was needed to afford a home?” Similar you can say about the different countries. In one country housing is much cheaper than in other. When you will check the average salary – they will be different too. Do not speculate over: “When it was more affordable?”
    • Ask: “What can I do to afford a new home now?” 
  3. “It can be pretty hard sometimes, to be financially stable.” “Easier said than done.” -If the child has learned to save money in childhood, it will be easier for him to save money as an adult. Being financially stable is a habit. The hardest part is to decide – I will be financially stable, break the old customs and start with the new ones. You will build financial security thanks to good, supportive, daily habits.
    • If you are not financially stable yet, start with a small step.
    • Track your earnings and expenses weekly or monthly.
    • Write down what you spend the money earned.
  4. “Being financially stable is not easy. Even with frugal, careful spending, it’s easy to fall into debt over something as simple as unplanned car repairs or a medical emergency.” – If you start to save a small percentage of your earnings, an unplanned car repair will not surprise you. Look at it from a different angle: “How much it will cost me to repair the car, if I do it, for bank money?” Calculate the interest costs and the additional payments for getting a loan. If you can pay a credit installment to the bank, you can pay the same amount of money to your savings account.
    • Start transferring small amounts of money to your savings account today.
    • Can you afford only $1 a day? Start with this.
  5. “Being financially stable nowadays means sacrificing some aspects. Like free time, love, goals, debts(schooling), etc.” – Here I have to ask you: “What will you sacrificing if you live many years on credit?” “What will you devote in the future to pay off all debts and interests? Time with your family? Time for your hobby?” I can remember my mentor’s sentence: “Save money, and additionally spend some percentage of it for entertainment”.
    • You can save money for financial security and at the same time for fun too.
    • Create an additional “fun” account.
    • When saving, put some money into your savings account and some into entertainment.
  6. “Financial stability is impossible nowadays. Tax is milking us and politicians are stealing our money.” – When you earn money as an employee you pay the taxes from your gross income. Then you live on what’s left for you. When your business or investment collects money, it is different. First, you earn and spend in the company. You pay taxes from what’s left. In other words, you pay more taxes when you’re a full-time employee. Lower when you run a business or invest. How do you earn money is your decision. 
    • You want to pay lower taxes, look for legal ways to reduce them.
  7. “Sadly I don’t think this one is achievable particularly for the younger generation.” “Financially stable? I was born in the wrong decade for that.”– if you think the same, challenge yourself: “What are my options?” It is wondering how much time people can spend on their phones – playing games and surfing the internet. How much less time to think about how to make money online. You have an incredible device in your hand. You can use the smartphone for playing and enrich someone else or you can gain from it. Your grandfather needed to go out for earning the money. Nowadays you can make money wherever and whenever you want. The world gives challenges and opportunities, at the same moment.
    • Be open to new possibilities.
    • Learn and take care of your financial stability.
Be financially stable - simple steps


  1. Be open and look for opportunities
  2. Use what you have
  3. Record your earnings and spendings weekly or monthly 
  4. Regularly save some percentage of your earnings
  5. Divide your savings into a savings and entertainment account
  6. Do not wait for the perfect moment
  7. Act here and now.

Leave a Reply

Your email address will not be published. Required fields are marked *