Maybe you have a lot of— even too much— money. Maybe you have no money at all. Perhaps you are somewhere in between on the money spectrum, making just enough to keep you satisfied. Wherever you fall on the money Goldilocks spectrum, there is always room for improvement of your personal money management skills.
The most important bit of advice for any person who makes money (only children are exempted) is to do one’s best to live below one’s means. What this entails is not spending all of your money just because you have money to spend; just because you COULD afford a Ferrari doesn’t mean you should buy one. Instead, make smart, meaningful purchases (with the occasional splurge) and save as much as you can. If you have a nice savings cushion you are set for whatever crazy curveballs the road life my unexpectedly throw at you (that you can’t out maneuver in your Ferrari.)
Next, make a budget, duh! Even if you are raking in yearly dough in the millions you still need to have a plan for where all of that money is going. Having a plan keeps you out of trouble because it eliminates some of your free spending and gives your money a place where it can work the best for you. Manage your money otherwise it is free to run away from you. Have a lot to save every month or year? Put it in a high interest savings account and don’t spend it. Have kids that will most likely go to college? Start College funds for them now or preferably while they are still in the womb because it will take you about twenty years for your investment to have earned enough interest to pay for four years of undergraduate work.
Get your money under control, and then try not to worry about it. This may be impossible, but if you can eliminate stress from this one area of your life it will be extremely beneficial in other areas. For instance, 50 percent of all marriages now end in divorce, money problems and arguments over money being one of the main reasons people decide to file. Although money is certainly stressful and can be a huge problem, if you can have your finances under control you will ultimately be much happier. Note, you don’t have to make millions to have your money under control; rich people have arguments over money too! When you have your finances under control you can enjoy your life instead of thinking about how much everything costs and how you are going to pay your bills. Have a plan, stick to the plan, and then let it go. Trust that your plan will work!
The goal for any income is stability, and with these few tips you can hopefully reach financial stability. All of these things can be done by anyone, meaning you don’t have to spend money on a financial advisor to have your finances under control. Remember to live below your means, make a budget, and keep control of your spending relationships and you will be financially stable for life, no matter your income amount.