In today’s episode, we will speak to my friend Nadia from Speaking of Cents.
She writes about a variety of topics around personal finance and focuses mostly on the mindset that revolves around managing your money. The aim of the blog (and Youtube channel) is to educate people on how to manage their money at any point in their life regardless of their income.
We will discuss the concept of Financial Stability. What Financial Stability means, why it is important for you and your family, why people struggle with it and Nadia will provide an actionable 7-step plan to achieve that Financial Stability.
This episode is for you if you are getting started with your finances and want some guidance on improving your financial situation or find your way to work towards larger financial goals.
You may also realize early on in the episode that you are already financially stable, that is, of course, awesome but the practical way in which Nadia guides us may still help a friend of yours so make sure you share the episode them!
- Financial Stability: In short, it means that you have enough resources/money to spend on your day-to-day expenses and are able to save. Not Financial Independence. It is different for different people. For younger people just starting out, it can mean to be able to pay for a vacation, entertainment or extra bills that parents are not paying,… For a family with kids, it can mean to be able to provide everything and have some leftover. And for higher-income range folks out there, it can mean additional savings in the form of assets and investments.
- Reasons why people struggle with Financial Stability :
- Not being able to make the difference between a need and a want: Impulse buying for example.
- Excessive use of credit card (the money you do not see is harder to manage)
- The 7 Steps to Financial Stability :
- 1) Educate yourself about personal finance: online resources, books, podcasts, etc. The good news is that these are mostly free or pretty inexpensive. Going through these resources will prepare your mindset for the next steps.
- 2) Look for a job/full-time employment that you enjoy. If you are struggling on an emotional level because of your job, it will not help you to achieve financial stability. For the creative ones, Nadia had an excellent tip: Have a creative outlet to pursue what you love.
- 3) Make your finances personal, pay attention to YOUR finances. Don’t get distracted by how your peers live. Manage your income, your expenses, focus on reaching your financial stability.
- 4) Have a solid budgeting strategy (or a conscious spending plan like in I Will Teach You To Be Rich). You can use Excel, budgeting apps and for the non-technical people, you can do it with pen and paper like Nadia or even use cash like back in the days!
- 5) Live below your means to prepare you for the future.
- 6) Build an emergency fund: A money safety cushion for unexpected events (disability, repairs, job loss,…).
- 7) Start investing or put money in a passive income stream, there are many possibilities (Stocks, Peer-2-Peer lending, Bitcoin, Legos, Real Estate,…). Nevertheless, as a minimum, Nadia recommends you put money towards retirement. Especially if there is an option with your employer or if you can benefit from tax-advantaged retirement accounts in your country.
- Do not be too hard on yourself along the way (it can take months or years) and enjoy the process! Take it as a fun challenge, and if you made it all the way to step 7, Congratulations to you, you are now financially stable!
Who is Nadia?
My name is Nadia Malik and I am a Personal Finance blogger, Online course creator, and a YouTuber. I write about all things money and what is the right mindset when it comes to managing your money better.
I am also a full-time mom who is passionate about traveling while making money from home. You can find me on my blog Speaking of Cents, my YouTube channel Speaking of Cents Nadia Malik or you can follow me on my Instagram.
- Blog: Speaking of Cents
- Youtube channel: Speaking of Cents Nadia Malik
- Course: Massive Pinterest traffic
- Instagram: @speakingofcent
- Twitter: @CentsSpeakingOf
- Book recommendation: I Will Teach You To Be Rich
- Podcast recommendation: Afford Anything (on my list as well)
- Blog recommendation: Every day She’s Sparkling, Her Paper Route, A Self Guru
- Best purchase under 100 USD: Vimeo for content creators (any software that can help you facilitate your life/save you time) or simply invest in self-care like a spa day to feel rejuvenated 🙂
If you liked this episode, please leave a review on Apple Podcasts and do follow us on social media as well for more great content, check our Facebook, Instagram, Twitter, and join our e-mail list. I would love to connect with you!
Disclosure: This post may contain affiliate links. That means I may make a small commission (at no cost to you) if you make a purchase. This will help to support Joney Talks!