Financial stability is a condition in which an economic mechanism for pricing, allocating and managing financial risk such as credit and counterparty are functioning well enough to contribute to the performance of the economy. A financially stable Person is one who has enough money to meet his/her needs.
IMPORTANCE OF FINANCIAL STABILITY
A financially stable system plays a critical role in a nation's economy. It enables the financial intermediation process which facilitates the flow of funds between savers and borrower's, thereby ensuring that financial resources are allocated efficiently towards promoting economic growth and development.
Financial stability also talks about the condition where the financial intermediation process functions smoothly, and there is a confidence in the operation of key financial institution and market within the economy. Therefore, it is fundamental to have a good stable and healthy financial system which can also support, improve, and boost the efficient allocation of resources and distribution of risk across the economy.
BENEFITS OF FINANCIAL STABILITY
Financial stability, is of great benefits to a nation's economical growth. It is also of great benefit to an individual because it is a key to financial opportunities, as it facilitates the steady flow of economy growth and income abundance. Very often, when we have money we can invest into good and rare opportunities. The benefits of financial stability in a country increases the global market scale and also brings financial recognition across the world.
It supports the growth and development of industrial revenues, and also creates job opportunities. It is also a yardstick, where entrepreneurs can strive to promote business ideas, investing in the country resources. It can as well increase the country's window of international business in the global market.
The benefits of financial stability is a very important factor, it is very important for a nation's growth and economy boost.
Some other factors include;
OUT OF SIGHT:
In most cases, we tend to abandon things that are too little, or less visible. However, these little things piles up and eventually come to us as a big blow. Therefore, failing to track small expenses is not good enough for our finances.
Some times being financially stable can at some point cause one to neglect important strategies and some rare economical views which should have been viewed and put in place to increase the steady flow of resources and investment in an economy.
BUDGET FOR THE BEST:
Focus on investment, set up a monthly limit and document every penny you spend. In other words, you should concentrate on increasing the money by investing it wisely.
Thanks for reading, I am @adesojisouljay, the unique being.
Hello @adesojisouljay
I have come to think, that financial stability is just emotional stability, since what for me is financial freedom for you is not, it is worth more emotional stability than anything else. Of course it is always important to have sources of income and savings that make us a better life.
Best regards, be well.
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