What is financial stability?... And how to achieve it

Would you like to live debt-free? And with money that works for you to save and not have payment problems. This is a stage of our lives and can be achieved through financial planning.

Having Financial Stability is the first objective of a human being, it is the level that allows me to later obtain “Financial Freedom”. Not every human being can obtain Financial Freedom, but they can obtain “Financial Stability”. When I have financial stability, it means that I do not have financial problems, it means that I have a positive personal flow of money, I have no debts or the debts that I have I can comfortably pay from my monthly budget, this payment does not impact my economy. Characteristics of a person who enjoys “Financial Stability”:

• Your expenses and/or expenses are less than your income
• Save between 10% and 30% of your income every month
• You have a monthly and/or annual income budget & expenses
• If you have debt, the monthly payments are very low in relation to your income (10% to 25%)
• You have investments and/or assets that generate income
• Debts, if you have them, are temporary, you are working to eliminate them.

What is financial freedom?

When we are at the level of Financial Freedom it means that we have enough assets that generate so much money that we could stop working and have enough income to live with for the rest of our lives. We have a flow of money with which we can live, covering all our expenses.

Why don't we have financial freedom?

Debt is the main reason why many of us do not have Financial Stability today. So to get out of this terrible position, it is the first thing we must face, it is the first step to move forward financially.

Achieving freedom

It is advisable to request an updated cut to know the exact values of the debt. From then on you can analyze and compare different alternatives to cancel the debt. This will allow you to achieve financial freedom and therefore your economic stability.

Tips to get out of debt quickly

• Stop using your credit cards.
• Don't let the debt continue to increase.
• Negotiate a refinancing.
• War economy.
• Learn the lesson.