The 3 Step Process to Change Your Financial Identity: From Bad to Good
Every person has their own characteristics and traits that differ from the others. Now, this is what makes all of us a bit similar yet unique from others. Well, just like an emotional, physical and mental change in features, each and every one of us has their own financial identity.
Yes, you heard it right! Every people have their own flairs and uniqueness when it comes to financing. Now, this is not measured or determined by the total amount of money that a person has in their account. It is made up of all the financial activities both small and large that we all do in our daily life. These could be anything such as:
- How you pay your bills
- Whether you track your spending or not
- What kind of budget you follow
- How you deal with a financial crisis
- how much savings you have
Now, all these events play a major role in deciding your financial identity. If you will look at these aspects, you will realise that every people have a different approach. Some people pay their bills on time while others struggle in making the repayment. Carelessness and negligence in all these aspects result in a negative image that makes it difficult to acquire any financial product.
What can be done to change the financial identity?
However, if you are having a bad identity, then this doesn’t mean that this will be forever or a stain that you cannot remove. With better planning the right decision, you will be able to turn your identity into positive.
Here, in this blog, we have mentioned a 3 step process that can help you attain a reputable financial identity. Now, let us see them one by one.
Step 1:- A budget is what makes you the “Money king”
One of the biggest reasons why people struggle financially in their life is the lack of budget. Hence, the first thing that you must focus on or get started is the right budget. Having the right budget can benefit you in numerous ways:
- Provides a better grip over your finance
- Help reaching your goals faster
- Make savings possible
- Can help you get rid of paycheck to paycheck lifestyle
- Get rid of financial stress
Overall, the budget gives a precise idea about the money coming in and going out of your pocket.
Step 2:- Diversity in income is stability in finance
Maintaining a financial balance in your life becomes very difficult with a single source of income. It is important to have multiple sources of income so that you don’t face any constraints and handle your overall finance easily.
Now, if you are a 9-5 desk job person, managing time can be very hectic. But, to earn more income, you need to take your time out if you really want to achieve stability. There are tons of ideas available on the internet that can help you earn side income such as:
- Free lancing writing
- Virtual assistant
- Graphic designing
If you are doing something for which you require additional funds for the setup cost, then you can approach a direct lender to get bad credit loans on an instant decision without fee.
Steps 3:- Be one step ahead of your ‘finance’
Handling money is not an easy task, whether it’s an individual or a business. Without control over your finance, it will be very difficult to deal with things. Now, you need to be ahead of your finance if you want to attain stability in your life. For this, you have to take serious action to keep your finance in check, such as:
- Paying your bills on time
- Get adequate savings
- Don’t let your credit score go down
Another thing that you can do is take a small debt in the form of bad credit accepted loans and use it to for your use. The timely payment of the debt will give a boost to your credit score thus improving your overall creditworthiness.
Wrapping up, these were the complete step by step process that can help you enhance your financial identity. Remember that attaining financial stability is an ongoing process, so it will take time to see a positive outcome. Therefore, patience and the right mindset is the need of the hour in such circumstances.