Sep 29, 2025
Financial stability means that you feel in control of your finances, can plan for the future, and are able to deal with unexpected expenses. It's a state of financial well-being that allows you to navigate life's challenges without constantly worrying about money.
It’s important to remember that anyone could become financially stable—even if your resources are modest. With some financial education and planning, you can work toward living comfortably within your means, not worrying about your bills, and building savings.
Being financially stable is important because it could resolve pressures on your financial health. It may also improve your mental health. Studies have shown that worries about money can lead to financial anxiety and even panic attacks.
Having financial freedom and stability can mean you are able to do several things.
You’re not alone if you don’t feel like you’ve achieved this or if you feel financial stress. American Psychological Association surveys have found that money and the economy are significant stressors for Americans of all ages.
Even in the best of times, it can be hard to achieve financial stability. If the economy shifts, some people’s salaries might not keep pace with higher prices. They might feel like their money doesn’t go as far as it used to. Higher interest rates can also increase the cost of debt, putting more stress on many family budgets.
You can’t control rising prices or interest rates. But you can protect your finances with smart money habits and informed financial decisions, even during periods of economic uncertainty.
Financial stability and financial security may sound similar, but they’re separate concepts. However, both are important for your sense of financial wellness.
You could think of financial stability as the first step in reaching financial security. In other words, financial stability could address your current situation: immediate financial goals, like budgeting or lowering your debt. It can also help set you up to plan for long-term financial goals, like creating a nest egg for financial security.
Financial security may feel different for each person. For many it means knowing their retirement plan is sound. Others may achieve it when they know they can afford to send their children to college or that they’re on track to pay off their mortgage and other debt. Lots of people start with gaining financial knowledge so that they understand what a retirement plan could be or how to plan for college expenses.
The point is this: Most people seek financial security. More than 40% of Americans don’t have an emergency fund.1 And as many as 59% aren’t financially prepared for unexpected expenses of $1,000.2
But it doesn’t have to be that way. Building a budget and creating a financial plan now could lead to financial security in the future.
To start feeling more financially stable, begin with these six steps.
Living within your means is always key to financial stability. That can be hard to do if you’re not sure where your money goes each month.
A budget can help you see what you’re spending and where you can cut back. Many people don’t like budgeting because they feel it limits their lifestyle. Try the 50/30/20 rule to simplify your budgeting. Here’s how it works:
If this method doesn’t appeal to you, there are several other approaches you might consider when building your budget.
You might have the best of intentions to live within your means, but then life throws a curveball, like a fender bender, a leaky roof, or a job layoff. Suddenly you’ve got major expenses you didn’t expect. Aim to build up your emergency savings to cover three to six months of living expenses so that you can handle any unexpected expense that comes your way.
Turn financial stability into financial security. Focus on creating wealth that will last decades. Retirement tools like a 401(k) or an individual retirement account (IRA) can help grow your money while lowering your tax burden. Consult a tax professional to learn more.
It’s hard to feel financially stable if you’re stressed about debt. Consolidating your debt into a personal loan could make your debt easier to manage. You may even be able to pay it off sooner.
Unlike credit card debt, a personal loan is a loan you pay in installments. By combining your debt into a personal loan, you’ll know the exact date the loan will be paid in full. That type of certainty could help provide peace of mind. In fact, 86% of surveyed debt consolidation customers told us they felt a sense of relief after consolidating debt with a Discover personal loan.*
Another path to financial stability is to try to boost the amount you earn. For example, improving your job-related skills and knowledge may lead to a promotion. Or consider working with a career coach to improve your interviewing skills and résumé. This might help you get a higher-paying position.
Some of life’s expenses, like medical bills, can be too big to fit comfortably into your budget. If you learn to borrow wisely, they won’t damage your financial health. Lenders check credit scores to understand each borrower’s creditworthiness and decide what interest rates and loan terms to offer. The higher your score, the better the interest rate you may be offered.
Here are some ways to improve your credit score.
Want to know more about why it’s never a bad idea to pay attention to your credit score? Read 10 Reasons to Aim for a Good Credit Score
Financial stability means feeling in control of your money, even during economic uncertainty. It means being able to pay your bills without worry and having money left over for saving and for fun.
Sometimes, though, debt can get in the way. To help gain control, you might consider a personal loan. By consolidating your debts into one set regular monthly payment, you can budget and plan with confidence for the future. And with a fixed interest rate and repayment term, a personal loan may give you the flexibility you need on your way to financial stability.
Articles may contain information from third parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third party or information.
The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., (Discover) its affiliates.
*ABOUT SURVEY
All figures are from an online customer survey conducted in September 2024. A total of 736 Discover personal loan customers were interviewed about their most recent Discover personal loan with 546 of them using the funds to consolidate debt. All results @ a 95% confidence level. Respondents opened their personal loan between January and July 2024 for the purpose of consolidating debt. Agree includes respondents who ‘Somewhat Agree’ and ‘Strongly Agree’.
