How To Be Secure In Your Own Finances
I feel pretty financially secure… maybe it’s because I have no debt. Maybe it’s because IDGAF about what others think. Instead of paying others (debts owed), I pay myself (savings). My only phone calls are from family and friends, which is how I prefer to live! I became secure when I determined what made me happiest – with no desire to drive my money, live in my money, or show-off with my money. By definition, financial security is how much peace of mind you have that your income will cover your expenses, emergencies, and goals.
In my opinion, you become financially secure when your needs and wants are less than what your income can support. Lavish lifestyles come with a hefty price tag considering that we see a majority of professional athletes making millions of dollars – but they also SPEND millions of dollars. Doctors make hundreds of thousands of dollars – and they also SPEND hundreds of thousands of dollars. Maybe it’s time to stop worrying about increasing your income, and start thinking about the importance of your financial security goals.
Tips to becoming financially secure:
- Know Thy Self – what do you need?
- Today is the day to start
- Evaluate expenses: needs versus wants
- Budget: view savings as an expense and pay yourself
- Make your savings automatic
- Control impulses: limit eating at restaurants or buying clothing spur of the moment
- Plan ahead for larger purchases
Whether you’re trying to get rich or you’re trying to live debt-free… you must figure out what your goals are and create a plan to get there. To be financially secure, it helps to understand how much house, car, and lifestyle you need, want, and can afford.
For me, financial security is all about being comfortable and confident with who you are as a person. I want to live with low or no debt. I want my future family to not worry about a lack of money. I want to have money in my bank account so that I can sleep well at night. Knowing your idea of financial security is step one to creating a plan to get you there!