There are many benefits of being a financial stable person. It promotes peace of mind thereby reducing stress. There are many tools available for being financially stable such as proper budget planning. In this article we will mainly focus on the benefits of being financially sound.
In a world where material things need to be acquired to live a relatively “good” life, being financially stable is important. But not everyone thinks about financial stability in the same way. Some equate financial stability to having lots of money in the bank. Some think of it as not being in debt and not worrying when the next meal will be.
Some people have larger needs while there are those whose needs just encompass the basic needs like food, clothing and a roof over their heads. But all would agree that being financially stable has many benefits.
One of the most important benefits of financial stability is peace of mind. This is very important as without it, you’ll always be under stress thinking about how to get the money to pay the bills, to buy food, to pay the rent and so on.
With stable finances, you’ll have peace of mind and you’re able to go through life in peace.
This is evident during the Great Depression of the thirties. When Wall Street crashed in October of 1929, investors began to resort to drastic moves because they don’t have peace of mind. They’re always checking the status of their stocks and as stock prices plummeted, they too resorted to jumping out from their office windows.
The next important benefit of being financially stable is that your family doesn’t worry about you. Your children and your spouse can tell when you’re worried about financial affairs and when this happens, it will affect your relationship with them when your worries are evident to them.
You may not feel like interacting or communicating with your family members because of money worries and this will create a rift between you and your family. This will not happen if you’re financially stable.
It may seem that without being financially stable, you won’t lead a happy life as you don’t have peace of mind and your family will worry about you. It may seem that you need to have money to be happy. It is true that money isn’t everything but everything in this world requires that you possess money.
So you need to assess your needs and the amount of money you’re able to earn. If you don’t spend more than you earn, then you won’t be in dire straits. To be financially stable doesn’t mean you have to have a lot of money. It just means that you should be able to meet all your needs with what you earn. And to do this requires a little knowledge of budgeting and a little discipline.
This article discusses breakeven analysis. It highlights the importance and benefits of breakeven analysis..
A budget in simple terms is a plan for allocating resources and specifying how resources will be allocated or spent during a particular period. It shows the amount of money that is available for, required for, or assigned to a particular purpose or period of time. .
Directing helps in improving the work quality , better performance, building better communication skills and also develops good human relationships in a cooperative environment. The article discusses in detail about the benefits of Directing Function of Management.