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2020 was a killer year when it came to personal finance for many people, and not in a good way. So far, 2021 seems to be carrying on that trend, and with only a glimmer of light at the end of the covid tunnel, it doesn’t look like that’s going to be changing soon. This leaves many people wondering how they could possibly build a stable financial foundation for their future.

Stay Out of Debt

One of the most important things you can do to protect yourself financially and build a stable foundation for future finances is to stay out of debt. This is easier said than done, especially in an economy that makes it so easy to go into debt in the first place. Getting approved for a credit card is far from impossible, even for those who don’t have good credit scores if they’re willing to compromise on their APR. Debt has a solid negative impact on your net worth, so even if it’s tempting, it’s best to avoid it as much as possible.

Own Assets

While debt hurts your net worth, owning assets helps it. It’s important to keep in mind that when it comes to finance, the definition of an asset is something that is producing income, whereas a liability is something that costs you money. Owning assets should help you increase your net worth overall. One of the best ways to build wealth is by owning real estate. You can then rent out the real estate you own and make an income off of the monthly rent paid by your tenants.


If the recent stock market shenanigans have you worried about investing your money there, it’s understandable. That said, you don’t have to let that discourage you from investing. Investing your money in the stock market can still be a good way to build a stable financial foundation for your future. You just have to be smart about it. Look carefully at the companies you’re considering investing in. What is their history like? Where are they likely to be in years to come? Is it a company you would actually want to have ownership in? The stock market isn’t meant to be a get-rich-quick scheme. It’s meant to build wealth over time by way of dividends or selling shares of stock. The more research you do about where you invest your money, the more likely it is that you’ll make sound investing decisions.

Given the current economic climate, it’s understandable to wonder and worry about how you could possibly build a stable foundation for your financial future. Start by staying out of debt and then build wealth by owning assets and making smart investments. It will take time and effort, but you can build a decent financial future for yourself.

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