Advantages of being Financially Stable

Financial stability is one of the most common dreams people have. Even children want to get rich when they grow older. People aspire career advancement for a better pay, some engage in business, while some invest. No matter what path we take, it all leads to one thing, to earn more in order to become financially secured, live a comfortable life, and enjoy.

Apparently and ironically, many people fail to see the good things of becoming financially stable. Everybody wants to get rich but not everybody have ever thought of financial stability. Is being rich and financially stable different? In some sense yes and we should give more emphasis on financial stability rather than being rich. Being rich is merely having the money and material possessions while financial stability means that we don’t have to worry much about finances.

Have you ever noticed some people who are earning well yet still end up broke sooner or later? Some executives who are down in debt? We are in a world where being rich means who spends more. Everybody is so busy trying to keep up with the Joneses and staying on top of the status quo. That’s what being rich means. Financial stability on the other hand is a result of good financial planning. You don’t necessarily have to be rich to become financially stable. All you need is a sound financial gameplan and work it out. Here is a rundown on the advantages of being financially stable (in contrary to being rich).

1.) Financial stability gives peace of mind. Getting your family and loved ones covered through insurance, getting your investments and savings untouched in case you get sick because you have health care plans, or knowing that your children, grandchildren, and future generations will no longer worry financially because of your investments are just some of the few things that results to peace of mind financially because of proper financial planning and execution. In some cases, rich people rely solely on one or two income sources such as employment or business and once such job or business is gone, they go down the drain as well. Having a financial plan means covering every possibilities and make money work on your favor. Many rich people doesn’t have peace of mind because they are too preoccupied in either competing with other people financially or worrying too much about their future. If you have a financial plan, you’re prepared, you’ll be financially stable, and you can enjoy for the rest of your life.

2.) Financial stability could lead to wealth, Being rich doesn’t necessarily mean being financially stable. Since financial stability is normally a result of a good financial plan, it generally leads to attraction of money and accumulation of wealth. As soon as the savings, emergency funds, and investments start to flourish, money will come in. Being rich on the other hand, as we defined earlier, is having more money to spend and he who spends more means he’s richer. Too much spending will never lead to wealth accumulation and in fact instead of wealth, debt and liabilities accumulate. The end result? Financial chaos.

3.) Being more productive and efficient. In so many cases, people who earn a lot without any financial plan doesn’t know where to put their money and that is the reason why they spend a lot on things that they really don’t need. Since being financially stable means having a good financial plan, your money goes to where it is intended to be thus making you more efficient with your money. For example, person A and person B are earning the same amount every month. Person A, wanting to become financially stable later on in life and had a good financial plan, properly diversified his income in health care, insurance, savings, and investment. Person B on the other hand, having the wrong mindset that he who spends more is richer, bought new gadgets, went out with friends, and went on for a vacation. Who do you think will enjoy later on in life? Person A who sacrificed and focused on his goal or person B who belongs to the majority of the people who has the wrong mindset on being rich?

Tracing it deeply, the spending mindset and attitude of most people comes from the attitude of most people of wanting quick wealth and instant satisfaction. If you notice, how many people have you already heard say that they want to become rich? Some would even say that if I only have this amount of money I would buy this and buy that. But have you ever heard somebody say that he’s going to establish his financial foundation? Probably only a very few. People want to get rich but isn’t willing to pay the price or haven’t seen the whole picture.

Now that you know how good it really is to become financially stable rather than becoming merely rich, are you now willing to pay the price and sacrifice for it? I really hope so.