{"id":9951,"date":"2019-09-16T12:30:08","date_gmt":"2019-09-16T04:30:08","guid":{"rendered":"https:\/\/leasing.dmcihomes.com\/?p=9951"},"modified":"2023-01-26T10:03:25","modified_gmt":"2023-01-26T02:03:25","slug":"achieving-financial-stability","status":"publish","type":"post","link":"https:\/\/leasing.dmcihomes.com\/blog\/achieving-financial-stability\/","title":{"rendered":"7 Steps in Achieving Financial Stability for Fresh Grads"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Fresh graduates and young professionals tend to be gullible thinking that the world is theirs to conquer, only to be gobsmacked by debt and financial upheavals when reality finally bites. Financial stability is a concept amiss to them; it\u2019s an idea that they know they should aspire to attain, but not urgent enough to prioritize.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/thecollegeinvestor.com\/21120\/financially-stable\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">Financial stability means differently to different people<\/span><\/a><span style=\"font-weight: 400;\">. The following, however, is a simple checklist to know if you are financially stable:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You have enough money to pay your monthly bills.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You do not always resort to borrowing money.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You have buffer savings or insurance in case of an emergency.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You save at least 3% of your income.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This guide is designed for fresh graduates and young professionals to kickstart their journey towards financial stability for a brighter future:<\/span><\/p>\n<h3>1. Eliminate unnecessary expenditures<\/h3>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9957\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/shelf-3087406_1280-1024x680.jpg\" alt=\"eliminate unnecessary expenditures\" width=\"1024\" height=\"680\" \/><em><span style=\"font-weight: 400;\">Photo courtesy of <\/span><a href=\"https:\/\/pixabay.com\/photos\/shelf-stock-supermarket-e-commerce-3087406\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">Geralt<\/span><\/a><span style=\"font-weight: 400;\"> via Pixabay<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">With the first <\/span><i><span style=\"font-weight: 400;\">sweldo<\/span><\/i><span style=\"font-weight: 400;\"> comes great purchasing power and great responsibility. Earning money for yourself is an exciting part of starting your own career. However, there are many things to consider first before you spend your money on unnecessary things. Several fresh graduates spend their first salary on <\/span><a href=\"https:\/\/leasing.dmcihomes.com\/blog\/tackiest-ways-spend-money\/\"><span style=\"font-weight: 400;\">tacky and senseless expenses.<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Financial stability is more difficult to achieve when you just started with your career. Impulse buying will quickly siphon your salary and savings. This is why you must be systematic in avoiding this.\u00a0<\/span><\/p>\n<p>One achievable goal is to list all your expenses every day for a week, no matter how small your spending is.\u00a0 Create a table of your expenses using basic applications such as Microsoft Excel.<\/p>\n<p><span style=\"font-weight: 400;\">Place the items you bought on one column and its price next to it.\u00a0 After a week, you now have a complete record of your expenses. Tally the amount you spend each day.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you have done this, you may now go to the elimination stage where you highlight all the items in your list that you could have avoided buying. That extra doughnut or merienda you\u2019re buying on your way back to your place after work may just add up to 5% of your total expenditure for a month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By also knowing the average amount you spend in a day, you can set your daily allowance equal to that average. This will keep you from spending beyond your set allowance.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having a visual representation of your spending assists you in monitoring your spending. You\u2019re already heading to financial stability and freedom once the shaky ground of your early financial situation is controlled.<\/span><\/p>\n<h3>2. Compartmentalize your money. Literally<\/h3>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9953\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/dollars-2439136_1280-1024x768.jpg\" alt=\"compartmentalize your money\" width=\"1024\" height=\"768\" \/><em><span style=\"font-weight: 400;\">Photo courtesy of<\/span><a href=\"https:\/\/pixabay.com\/photos\/dollars-envelope-money-corruption-2439136\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\"> RJA1988<\/span><\/a><span style=\"font-weight: 400;\"> via Pixabay<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">One effective way to achieve stability is to compartmentalize the money you earn.\u00a0<\/span><\/p>\n<p>Compartmentalizing your earnings means you are allocating and distributing your monthly salary to your bills, weekly, and daily expenses, savings, emergency money, and even leisure money.<\/p>\n<p><span style=\"font-weight: 400;\">This is easier said than done since fresh grads don\u2019t know how to methodologically divide their money for specific expenses. Fresh grads and young professionals need to know <\/span><a href=\"https:\/\/leasing.dmcihomes.com\/blog\/millennials-guide-manage-bills-saving\/\"><span style=\"font-weight: 400;\">how to manage and save money for their future.<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you are clueless as to how to do this, you could try<\/span><a href=\"https:\/\/www.moneycrashers.com\/envelope-budgeting-system\/\" rel=\"nofollow&quot;\"> <span style=\"font-weight: 400;\">the envelope system<\/span><\/a><span style=\"font-weight: 400;\">. This system helps you to sort and divide your earnings with the help of actual envelopes. To do this, just purchase several envelopes. You could opt to buy colored ones if you want to be more organized. Label each envelope with each expense that you need to allocate money to. You could also make a colored system to indicate that yellow is for the electricity bill, and pink is for the water bill.<\/span><\/p>\n<p>When you get your salary, immediately place the amount of money that you will allocate in each of the labeled envelopes. You can predict how much money you need to place by following step one of this guide to monitor your bills and expenses.\u00a0 By using the envelope system, you have tangible compartmentalization of your expenses.<\/p>\n<p><span style=\"font-weight: 400;\">You could also use the envelope system for each day in between your paydays. The envelopes will contain your daily allowance.\u00a0<\/span><\/p>\n<h3>3. Make intelligent decisions<\/h3>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9954\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/doors-1767563_1280-1024x546.jpg\" alt=\"make intelligent decisions\" width=\"1024\" height=\"546\" \/><em><span style=\"font-weight: 400;\">Photo courtesy of <\/span><a href=\"https:\/\/pixabay.com\/photos\/doors-choices-choose-open-decision-1767563\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">Quimono<\/span><\/a><span style=\"font-weight: 400;\"> via Pixabay<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Achieving financial stability is not just about making smart financial and economic decisions. It\u2019s also about making wise, strategic, and informed life decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a young professional, choosing among the plethora of job offers, for instance, could be a predicament. Job offers with high salaries are what everyone is looking for. However, when choosing which company you would work for, you also need to consider other factors such as its location, benefits, and its history and background.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, a high paying job that is 2 hours away from your house could end up causing you more expenses. Because aside from the horrible commute that could induce stress and cause you to impulse buy to alleviate the pressure you\u2019re feeling, you might also face more expensive renting rates if you plan to move since the cost of living there could be higher than where you are living.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If for example you still choose a higher paying job, you need to consider several options to save money. Getting yourself a roommate for instance dramatically cuts down the cost of paying the rent. Evaluating and ruminating on your choices is a key part of finally attaining financial stability.<\/span><\/p>\n<h3>4. Try investing your money<\/h3>\n<p style=\"text-align: center;\"><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9958\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/stock-1863880_1280-1024x682.jpg\" alt=\"try investing your money\" width=\"1024\" height=\"682\" \/><span style=\"font-weight: 400;\">Photo courtesy of <\/span><a href=\"https:\/\/pixabay.com\/photos\/stock-trading-monitor-business-1863880\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">3844328<\/span><\/a><\/em><span style=\"font-weight: 400;\"><em> via Pixabay<\/em>\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let your savings grow with investment plans. There are several options for you such as pooled investments and bond investments. You could also <\/span><a href=\"https:\/\/leasing.dmcihomes.com\/blog\/beginners-college-investments\/\"><span style=\"font-weight: 400;\">earn your first million in college<\/span><\/a><span style=\"font-weight: 400;\"> if you familiarize yourself with these kinds of plans.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Polled investments <\/span><span style=\"font-weight: 400;\">is a portfolio of cash from several investors that form a coalition for the purposes of investment. <\/span><span style=\"font-weight: 400;\">\u00a0Investment companies such as COL Financial, Philequity Management Inc. (PEMI), and ALFM Mutual Funds can assist you on how to start with mutual fund investments.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, you can also try bond investments. Bonds refer to loans granted by large organizations such as the government, private corporations, and different bank branches. <\/span><span style=\"font-weight: 400;\">Bond investment, in this sense, is a kind of debt investment in which the bond issuer pays you, the bondholder, a specific amount for the agreed <\/span><a href=\"https:\/\/economictimes.indiatimes.com\/mf\/analysis\/fixed-maturity-plans\/articleshow\/68842650.cms\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">fixed maturity plans<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h3>5. Save smarter<\/h3>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9956\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/money-2696228_1280-1024x580.jpg\" alt=\"save smarter\" width=\"1024\" height=\"580\" \/><em><span style=\"font-weight: 400;\">Photo courtesy of <\/span><a href=\"https:\/\/pixabay.com\/photos\/money-profit-finance-business-2696228\/\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">Natanan23 <\/span><\/a><span style=\"font-weight: 400;\">via Pixabay<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">The most important aspect of achieving financial stability is your ability to save money. Saving money is not simply about accumulating salary for a distant future such as for retirement. It is also most definitely not about saving to get enough money for that expensive gadget you want.\u00a0 Saving, instead, is possessing emergency money as a way to safeguard yourself from unexpected expenses such as accidents and sickness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re still unsure of investing, you could consider looking for other options such as getting yourself insurance. An insurance is a smart way of saving because you are prepared for any unexpected incident or event. This is definitely better than leaving your money sitting in your bank.<\/span><\/p>\n<h3><b>6. Invest in your skills<\/b><strong><strong><br \/>\n<\/strong><\/strong><\/h3>\n<p style=\"text-align: center;\"><em><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-9955\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/kelly-sikkema-N3o-leQyFsI-unsplash-1024x683.jpg\" alt=\"invest in your skills\" width=\"1024\" height=\"683\" \/><span style=\"font-weight: 400;\">Photo courtesy of <\/span><a href=\"https:\/\/unsplash.com\/photos\/N3o-leQyFsI\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">Kelly Sikkema<\/span><\/a><span style=\"font-weight: 400;\"> via Unsplash<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Working in your dream job does not always mean that you are earning enough to achieve stability. While it is true that working in an environment you actually enjoy eliminates the added toll of stress you\u2019ll face every day, it sometimes still won\u2019t be enough to pay for your bills at the end of the month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Getting yourself an extra part-time job could help you deal with financial burdens. Invest in your skills. Ask yourself what you are good at, and use this to score part-time freelance gigs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You could consider becoming a weekend tutor for young pupils. Pursue your dream to become a teacher by becoming an ESL (English as a Second Language) teacher online. Become a photographer in events. Accept commissions for artworks if you are good with art. Write for companies looking for content writers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are many ways you can pursue an extra paying job without having to deal with the added stress. Do what you love, and earn from it.\u00a0<\/span><\/p>\n<h3><b>7. Compare notes, but do you<\/b><\/h3>\n<p style=\"text-align: center;\"><em><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-9952\" src=\"https:\/\/leasing.dmcihomes.com\/wp-content\/uploads\/david-travis-5bYxXawHOQg-unsplash-1024x683.jpg\" alt=\"compare notes\" width=\"1024\" height=\"683\" \/><span style=\"font-weight: 400;\">Photo Courtesy of <\/span><a href=\"https:\/\/unsplash.com\/photos\/5bYxXawHOQg\" rel=\"nofollow&quot;\"><span style=\"font-weight: 400;\">David Travis<\/span><\/a><span style=\"font-weight: 400;\"> via Unsplash<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">There is no one way to achieving financial stability. You could attend free seminars about financial planning, compare your budgeting strategy with your friends and colleagues, and read blogs about attaining financial stability online.\u00a0<\/span><\/p>\n<p>Learning how other people achieved stability is important for it expands your knowledge about financial matters. But remember that people are coming from different contexts, backgrounds, and experiences.<\/p>\n<p><span style=\"font-weight: 400;\">Consolidate the strategies of financially stable people, then tweak and personalize to match your own. Most importantly, you could innovate on your own to best suit your financial situation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don\u2019t bring yourself down in comparison with others. It doesn\u2019t matter if you are smooth sailing towards stability at a slower rate. What\u2019s important is that you are on your way there. Financial stability and financial freedom is definitely an achievable long-term goal. With the help of this guide, you can definitely develop a plan to attain this dream.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fresh graduates and young professionals tend to be gullible thinking that the world is theirs to conquer, only to be gobsmacked by debt and financial upheavals when reality finally bites. Financial stability is a concept amiss to them; it\u2019s an idea that they know they should aspire to attain, but not urgent enough to prioritize.\u00a0 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9959,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-9951","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments"],"_links":{"self":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/comments?post=9951"}],"version-history":[{"count":1,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9951\/revisions"}],"predecessor-version":[{"id":14469,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/posts\/9951\/revisions\/14469"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/media?parent=9951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/categories?post=9951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/leasing.dmcihomes.com\/blog\/wp-json\/wp\/v2\/tags?post=9951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}