10 Steps To Financial Stability

1. Draw up a budget and stick to it

     You should spend less than you earn, so      cut costs and/or find ways to increase      your income, rather than borrowing to      pay bills or to pay for consumer items.

2. Know your net worth

     Your net worth is the difference between      what you own and what you owe. Set      goals to increase it.

3. Borrow only what you need, and     know the true cost of your debts

     The true cost of your dept can be      significantly higher, eg. interest payments      can greatly increase the total cost of a      purchase.

4. Pay off debt

     Pay off your high interest debts first, like      credit cards and hire purchase. Repay      your mortgage as fast as you can, and      you'll end up paying thousands of dollars      less overall.

5. Save for an emergency fund

     Or save a 'cash cushion' of 2-3 month’s      income (this is worth doing even if you're      paying off a mortgage, but not if you've      got high interest debt). This will help      cover you if the car breaks down, or you      lose your job.

6. Once you've paid off your high      interest debts, start regular      saving for the short term

      Short term savings include savings for a       deposit, a holiday or a lump sum to       invest.

7. Protect your assets

      Buy the right amount of insurance, make       a will, and see if a trust is right for you.

8. Make a financial plan for     retirement

      If you have access to a workplace       savings scheme consider it seriously       (even if you still have debt), especially if       your employer will make a contribution       too.

9. Consider investing to make your      money work for you

      It isn't just for rich people!

10. Teach your kids about money

        The earlier they learn, the better they         will be at making their own financial         decisions.