financial stability

Signs You Are Financially Stable

Signs You Are Financially Stable

Reading Time: 4 minutes

All of us aim to be financially stable. We try to maintain a budget, make it a goal to maximize our savings, minimize our spending, pay off our debts and dream of the day when we can count ourselves among those who are wealthy and financially stable. But what does financial stability look like? Here are some signs you are financially stable.

1. You can pay in cash.

The first sign that you are financially stable is that you can and are comfortable paying for purchases and bills in cash. You can only pay in cash when you already have a budget set out for it. Or if it is not in the budget, paying in cash means that you have the extra cash to pay for it.

2. You use your credit cards for convenience and rewards–not out of necessity.

When you are financially stable, you will use your credit cards mostly for convenience–when you forgot to bring some extra cash; or for earning points so that you can qualify for a major reward that you can enjoy later on.

3. You pay your credit cards in full, each month.

Being financially stable also means that you are capable of paying your credit card purchases in full, each month. This means that you are only using it for convenience, as in #2 above, and you have the actual money to pay for your purchase in cash.

4. You pay all your bills monthly, in advance–never late.

As a financially stable person, you should be able to pay your bills monthly and in advance, so you don’t incur late fees or having your service cut off. You don’t pay your bills 2-3 months overdue so you don’t experience the inconvenience of having to call customer service to reconnect the service.

5. You’re a natural saver.

Saving should already be a natural habit for you. This means that you are always thoughtful about your spending. You are not inclined to keep up with other wealthier people’s lifestyles. You do not really care what other people say about the things you have or do. Your priority is saving for an even brighter financial future.

6. You comfortably live within your means.

Financially stable people are able to live comfortably and consistently below their means. This means that they have already identified what is valuable and necessary to them and they focus their spending on those things. Being able to live beneath your means also shows that you are always on budget and rarely spend your money on things that do not bring you some kind of satisfaction or reward in return.

7. You don’t feel guilty when you’re out for special occasions.

Just because you opt to save instead of spending does not mean you deprive yourself of the pleasant things in life. Because you are a natural saver, you have accumulated enough extra money that you area able to splurge once in a while on special occasions that reward you with pleasant memories and strengthen your bond with the people who are most important to you.

8. You can afford to buy the things you really want.

Just like splurging on experiences and the people you value, you also reward yourself by buying the things you really want because you can afford to do so and it is a reward to yourself for your hard work. For example, you might have been wanting a very cozy mattress ever since you started following a budgeting system. You do not feel guilty about buying it. It is also in this way that you can feel even more that you have truly succeeded in achieving financial stability.

9. You are generous with money to help others.

A financially stable person does not worry about losing the money they provide to help out other people. When you are financially stable, you will feel even wealthier every time you help out someone in financial need. Being able to do so means that you are financially capable and being able to help out is in itself a kind of blessing.

10. You can survive for months without a paycheck.

One of the goals of putting savings in your monthly budget is to allow you to still be able to keep up with your financial needs even if you lose your job or your paychecks get delayed for a few months. If you can comfortably live on what you have saved for several months while you are still looking for a new job or working on launching your business, then you can check off this item on your financially stable list. This is one of the lessons we have learned in the pandemic.

11. You have a financial plan for the unexpected.

You cannot plan for the unexpected but you can be prepared for it financially. This is where your emergency funds or insurance come in. Emergencies include losing your job (as in #10 above), delayed payments if you are project-based, sudden hospitalization for a family member, etc. This part of your financial plan also includes your insurance policies to help you survive an unexpected financial event. While sudden events may take us by surprise, our financial plan should be there to back us up.

12. You have financial freedom.

Having enough savings and diligently following a budget means that you are able to monitor where your money goes and you have the freedom to choose where the rest of it (the extra that you have accumulated) can be spent on. You are also comfortable in choosing among the options to grow your money even more whether it be maximizing your investment portfolio or going into a business or both.

Generally, you are happy with your financial situation and you do not worry about your financial future because you are totally in control of your finances. You have the freedom to pursue the the job that you want rather than a high-paying one.

If you are far from being financially stable, don’t worry. It it not yet too late to change your future. You have the power within you to redesign your life one step at a time.


Edited version. First published in Pinoy Smart Living on 07.03.2018.

Feature Photo by Karolina Grabowska from Pexels

Posted by A.L. Jonas in Financial, 0 comments
How to Create Your Safe Space

How to Create Your Safe Space

Reading Time: 5 minutes

Have you ever wondered how to create your safe space? Many of us are so used to the rush of our everyday lives that we have forgotten to consider our own sacred space.

A safe space can be defined in many ways. Basically, it is a place where we can feel safe, free from judgment and where we can do whatever we love doing. It is a place where we can hold open dialogues with those who are most important to us, or even with ourselves. In this safe space, we can feel free to express our innermost thoughts, hopes and dreams. It is also where we can vent out our negative emotions if necessary, without fear of the consequences. Your safe space is your very own magic shop.

Each one of us needs to create our own safe space to help us create balance in our lives. As we go about our daily lives; we move through spaces and places where we need to follow rules and restrictions. We are able to live in this environment because of our personas. But what about our creative, shadow selves? Ideally, our safe space is where we can come home, let go of stress and find comfort in the things we love.

1. Create a Space of Inner Safety

Feeling safe starts from within. Learning how to face the storms of life calmly is a rare trait but one we must learn. Before we can successfully challenge anything outside of ourselves, we need to calm our own hearts and minds. Create your own safe space for inner safety to start feeling calm and assured in your daily life.

Learn to practice meditation to calm your thoughts at the start of the day. Then, throughout the day; try practicing mindfulness. Knowing yourself first and what triggers your positive and negative emotions gives you more control of your reactions to certain situations. Make ritual of your self-care routine. A gratitude journal also helps you to appreciate the positive things in your life.

Another important factor to consider for inner calmness is how you talk to yourself. Smile at yourself in the mirror instead of frowning. This way, you are more encouraged to say something positive about the morning or yourself. Talk to yourself and learn to appreciate what’s positive or good about you. Let your good side shine through by freely expressing your good feelings towards other people as well.

2. Organize Your Physical Safe Space

The next space where you can create safety is in your home. Usually, your bedroom is the first place that comes to mind but you can make your whole home feel safe too. Just like how meditation helps you calm down your chattering mind; you need to create a tranquil atmosphere in your home. This is also where you can display your vision board.

The first step is to declutter your space. Start with your room. Make your bed as soon as you wake up. Inspect your cabinets and drawers and organize what’s inside. Get rid of things you don’t use anymore and give them to someone else or to recycling centers. Keep only the things you love and use. Then, clean your whole room or clean your whole house too. Afterwards, put your cabinets, drawers and desk in order. This is the time where you can decorate or redecorate. Finally, cleanse and refresh the energy of your space by doing an energy clearing routine.

Make sure there’s a place for everything in your room. Don’t forget to return things to their proper places once you’re done using them. Put out the stuffed toys or quirky pillow cases you’ve been hiding and display them on your bed or chair. Put some fresh flowers on your favorite vase or add some plants to your desk. You can even use candles or diffusers as well as warm lights and music to create the calm and comfy atmosphere that will help you relax. Here, you can read your favorite books, write in your journal, do your meditation or yoga or enjoy a restful sleep.

3. Maintain an Emotionally Safe Space

Your social relationships can be your safe space. Even the calmest individual needs their family, best buddies, mentors, team mates to support them through their ups and downs in life. Having a group of people that you can turn to for the different obstacles that you may face is an important part of your life.

These are the people who provide you with the emotional safe space where you can express your feelings without being judged. Instead, they are there to help you solve whatever challenge you are facing. They provide you with the emotional support you need just by listening to you rant about your toxic work mate or how you want to quit your job but you’re too scared to do it.

Surround yourself with people who give you the emotional space to be who you truly are. With them, you can be silly and funny. You can bicker and disagree but you can still enjoy laughing at each other’s stupid mistakes afterwards. They can get serious with you if you need them to or enjoy being spontaneous with you. They give you the truth even if it hurts but they help you wipe away your tears and nurse your wounds as well.

4. Develop Your Financial Safety Net

Our jobs are a major part of our lives. Our main reason for staying in our jobs is the salary we get in return for our services. However, many of us become unhappy in our jobs because we find that our salaries are not enough to allow us to live the life we want. This is why creating a financially safe space is important. Saving money and reducing debt and expenses should be common sense but most of us don’t do this. Many books on wealth can help you transform your mindset about money and change your life for the better.

The first thing you need to do is to track your expenses. This helps you find out where your money leaks are and where you can reduce your spending so you can save more. Next is to create a budget so you can plan exactly where your money goes. This prevents you from missing any payment deadlines as well as helps you prepare for unplanned expenses. Make sure to include “savings” and “tithe” in your budget. If you know about the Law of Attraction, you know that it is important to give back in order to receive more. Whatever you receive, make sure to pay yourself first by putting it into your savings account.

In order to feel financially safe, you should aim to have at least 3-6 months worth of your monthly income in your savings account. This way, you have expenses to cover you if you decide to leave your job and look for something new. You should also aim to pay off your loans and credit card debts. During this process, learn how to manage your credit cards wisely to enjoy their benefits. Another thing you need to learn is how to invest your money so you can grow them slowly but steadily. Investments can provide you peace of mind that you can retire comfortably in the future.

There are other aspects of your life where you can create your own safe space. The best way is to focus on doing things gradually and consistently. By creating safe spaces for yourself, you can also help other people feel safe when they are interacting with you.


Feature Image: Original Photo by Emily Rudolph on Unsplash.

Posted by H.J. Rangas in Emotional, 0 comments
What Stage Are You In In Your Financial Life?

What Stage Are You In In Your Financial Life?

Reading Time: 3 minutes

Imagine a life where you are free to do whatever you want to do without having to worry about money. Wouldn’t that be wonderful? Yes, that life is possible and it is imperative that you know how to get there. Some people like businessmen, athletes, artists and lottery winners fast tracked their way to wealth. But for most of the people, the road to wealth can only be done one step at a time. There are stages to financial independence. First and foremost, you must figure out what stage are you in in your financial life right now. Knowing where you are will give you an idea on where to go next.

Active vs. Passive Income

Before you can understand the stages, you need to have a clear understanding of two basic financial terms about income.

Active Income – is the money that you earned while working. It means the income comes from your active participation or as a direct result of you performing a service. Active income can be in the form of salary, commission, tip, wage and even income from business.

Passive Income – requires little or no effort at all from your part. It is basically money that you earn from doing almost nothing.Examples of active income include income from rent, investments, dividends, trademarks, copyrights, affiliate marketing and other portfolio incomes.

Stages in Your Financial Life:

Stage 0: Financial Dependence

Financial dependence means someone else is responsible for you in your financial life. That person can be your parents, spouse, grandparents, uncles and aunts or whoever is paying for your monthly living expenses. It is perfectly normal to be financially dependent on someone else when young. If you are still in this stage, yet you are old enough to earn on your own, your main goal should now be to move on to the next stage.

Stage 1: Financial Solvency

Financial Solvency is the first stage towards financial freedom. In this stage, you no longer depend on someone else to pay your financial obligations. You now have the ability to pay for your monthly living expenses. It also means that if you have debt, you are now able to pay for your loans on time. Generally, the first step is to either get a job or start a business.

Stage 2: Financial Stability

Once you are already able to consistently meet your financial obligations on time, the next thing to do is to start saving money. Ideally, you should be able to save at least 6 months worth of monthly expenses in your emergency fund. As the name suggests, emergency funds are a stash of money set aside for life’s emergencies. It can be used for emergencies such as a job loss, health emergency or appliance and car repair. At this stage, you should also begin investing a portion of your income. A budgeting system will help you handle your money properly.

Stage 3: Financial Security

At this stage, the income from your investments should already be enough to cover your basic monthly expenses. You are no longer reliant on your active income alone because you are now earning some passive income. Even if you lose your job or business at this point, you can now afford to live a simple life without having to worry about your basic needs.

Stage 4: Financial Independence

This is the ultimate goal for most people. This is the stage of financial freedom. It is the stage where you have enough savings and investments to finance your desired lifestyle. At this stage, your passive income can now completely take over. Your basic needs as well as some comfort in life can now be sustained by the income that you are receiving from your investments. Even if you are vacationing in an island somewhere, you don’t need to worry because money is still pouring in without you having to lift a finger.

Stage 5: Financial Abundance

Some people will not be contented with merely achieving financial freedom. The next stage is for these people. In this stage, there is abundant wealth. You already have all the money that you ever need to the point that you don’t know where to spend them anymore. People on this stage usually looks into building their legacy. A legacy is basically who you are, how you lived your life and how you want the people to remember you. It is at this point that you consider how you will leave your wealth behind so it can served as a very strong foundation for the next generation.

Now assess your financial life. What stage are you in in your financial life right now? Where will you grow from here? What is your end goal?

Good luck on your financial journey!


Feature Image by Photo by Lukas from Pexels

Posted by A.L. Jonas in Financial, 0 comments