12 Things All Financially Stable Families Have In Common. - Porsha Carr Blog

12 Things All Financially Stable Families Have In Common.

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Is your family financially stable? If the answer is that you’re unsure, or even no, then it’s time to get to work. Being financially unstable can be like walking around with a cloud over your head and weight on your shoulders. You want the best for your family, and you don’t want to think that your actions could cause them to come to any harm or distress.

Below, we have outlined 12 things that all financially stable families have in common. Take a look and get an idea of the changes you can make to become more financially stable.

1. They Simplify Their Lifestyle
First of all, a financially stable family will go out of their way to simplify their lifestyle and make things as easy as they possibly can. Living a minimalist lifestyle can greatly reduce stress and improve finances.

You probably don’t need half the things that you spend a lot of money on. Can you downgrade your flash car to something more reliable? Can you keep your house and bills simple? Take a look at how you’re currently living and think about how you can best work on simplifying it.

2. They Save Up An Emergency Fund
Having an emergency fund behind you can give you peace of mind and help you to prepare for just about any eventuality. What if you had to take a pay cut, or your car broke down, or something else happened that caused you a little financial distress? You won’t like to think that it could happen, but it really can and it’s always best to be prepared so you don’t end up in mega debt.

Set up a direct debit to go into your emergency fund and forget about it.

3. They Work On Paying Off Debt
Working on paying off your debts is also a good idea. Your interest can become unmanageable if you don’t work on paying off debt as soon as you possibly can. Now, this isn’t to say you shouldn’t have options in case of a real emergency. You can look at credit cards for bad credit if you've already had some debts to pay off but you want to be prepared. Just make sure you think about this carefully. Only ever use credit if it’s a genuine emergency.

4. They Have The Right Insurance
Having health insurance and life insurance is key when you have a family that depends on you. Make sure you look for the right policy and that you read the small print to ensure that it’s for you. Think about it: what would your family do if something serious happened to you? You don't want them to have the added stress of struggling to pay off different bills while you can’t, so make sure you choose the right policy.

It can be a good idea to read up together on the things that can stop a pay out, too, just in case!

5. They Invest In Themselves
Investing in yourself might sound counterintuitive, but in the long run, it’s going to be worth it. What courses and workshops can you do that will enhance your skills and make you more desirable as an employee? Or what can you do that will help you to expand your knowledge base and teach you how to start your own business or side hustle?

Investing in yourself is always a good idea, so set some money aside for this.

6. They Invest In Their Future
Now, you’re also going to want to invest in your future. Literally invest. You should have a retirement fund, and you should look at investments you can make that will help to support you

later on down the line. This can be confusing at first, but there’s a plethora of information out there that can help you to get started, including beginner apps that will round up your spare change and put them in an account of your choices to accumulate more money. Don’t just save, as savings depreciate. Smart investments are the only way you can make your money work harder over time.

7. They Having money meetings  Regularly
Having money meetings with your family is the smart thing to do - yes, even with your kids! This allows you to open up a dialogue early on and get everybody comfortable discussing money with one another. You can talk about your goals and what you’re doing to meet your goals, as well as any upcoming events that you’ll have to think about and prepare for.

8. They Have Financial Goals
It’s a good idea to have some actual financial goals to work towards, otherwise, you may end up buying things for the house and other things that don’t really matter because you’re not sure where you should be directing your finances. Having financial goals will help to give you ideas on what to do with your money and how you should be treating it. Write them out and put them somewhere you can see them every day!


9. They Choose Their Words Carefully
Now, simply having money meetings and goals isn’t always enough. Choosing the right language is important too! You need to have a positive mindset towards money and show that in the way you talk. If you don’t, your kids will pick up on it and they could develop some pretty damaging limiting beliefs that continue to haunt them later on down the line.

10. They Get Professional Help/Advice If They Need It
If you need professional help, there’s no shame in it. Speak to a financial advisor or somebody you know has experience in your situation.

11. They Create A Budget
A budget doesn’t mean scrimping and saving. It simply means you can make better decisions when it comes to spending. Knowing your numbers is absolutely key!

12. They Don’t Impulse Spend

Avoid impulse spending at all costs. Usually you’ll find that when you wait a while before making a purchase, the urge to buy it goes away.

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