I’ll be discussing how to recognize the difference between building real financial stability and just financing a lifestyle that looks impressive.
This is an important distinction that has to be made because it will inform everybody on what it truly means to be financially stable and faking the funk.
It should save everybody a ton of time when dealing with other success gurus or anybody else that wants to teach but are frauds.
You’re also going to feel more empowered when you have this knowledge. But let’s get to the topic.
How To Recognize The Difference Between Building Real Financial Stability And Just Financing A Lifestyle That Looks Impressive
Recognizing the difference between building real financial stability and simply financing a lifestyle happens when you’re able to do these things:
- You’re prepared if an emergency happens
- Being in positions to make investments
- You‘re confident with your financial situation internally and not just externally
It’s not limited to these factors, but they are huge indicators that you’re in one position over the other.
Being financially prepared for potential emergencies
Financial preparedness for potential emergencies is a sign that you’re financially stable.
It’s a safety net in many ways. When you’re in a position where you’re last isn’t being worn or eaten, it shows responsibility.
You have proof that you’re prepared if anything happens to pop up. Only a small margin of the entire world can say they’re able to do that.
We shouldn’t operate out of fear of an emergency, but it doesn’t hurt to have contingencies in place for the unknown.
You’re never sure how organized you are until a situation calls for you to step up without warning.
This reveals financial stability because it proves you’re not devastated if something were to ever go wrong.
Being in positions to make investments if need be
Being in a position to make an investment at the drop of a dime reveals you to have financial stability too.
Investments are further proof you‘re in a position to be financially flexible.
Nothing about them is guaranteed, but you also can’t play if you don’t have any tokens.
And if you’re not in a position to make even the smallest investment, you’re not doing something right.
In most cases an investment can’t be made unless you already have money to invest.
The people that usually do have money to invest are also the same ones that practice sound saving habits.
They’re not the people that only look rich. They might not even be it, but you can guarantee they’re on their way to it.
People that aren’t able to make gainfully reasonable investments are not stable. They just look like they “got it.”
Ultimately we’re discussing financial freedom. And with that is the ability to also expand your income if necessary.
You’re as confident internally about your finances as you are externally
Confidence in your finances internally in addition to your external attitude is telling of financial stability.
This is really a lesson in security.
You’re gonna feel better once you conquer this mountain because it’s not about others anymore.
You’re getting better at finances because you care about your own financial wellbeing.
What this does is bridge the gap between how your financial life looks to others.
Perception for many is everything, but it’s only a key.
Appearing financially stable is and should be the finishing touches to an already functional product.
Dressing and looking nice becomes a factor but that’s usually much later in the game.
Again, these are things that matter, but you can’t lose sight on what‘s really important here: actually having money.
One of the best parallels I can paint is the difference between having a platform you own and building a social media page.
The platform you own (usually in the form of a website) will be there no matter what.
There’s not many restrictions you have to follow, and it’s really starting from square one.
That would be on the side of actually being financially stable.
The social media page however is in many ways an illusion.
There’s not much that’s real about it. It could be taken away at the drop of a dime.
There’s not much substance or weight to it, and in many cases it’s only built to appear happy or rich.
You’re not moved by criticisms you might face whenever somebody has something to say when it comes to your money.
This is the case when it comes to somebody that’s truly stable with where they’re at in life financially.
Final thoughts
The difference between being financially stable and doing something for others to admire is a personal issue.
The person who is will always feel rooted in who they are when it comes to their finances, because they’re prepared.
They won’t be moved by the opinions of others.