In our modern world of wanting things immediately, it can sometimes be difficult to be sure that you’re spending your money on the right things, as well as saving – for your goals, in case of emergencies and for retirement.
What is financial security?
Basically, to be financially secure is to be in a good financial position where you have enough money to support the way you live while having enough left over for savings. The more often you have money left over, the more financially secure you are.
Financial security is the peace of mind that comes with knowing that you have enough money for your day to day needs, while still having enough left over to save for emergencies and other financial goals. This helps you to avoid needing to borrow money to cover life’s curveballs. Being financially secure is also what makes it possible to save for retirement.
Navigating your way to financial security
While the most obvious route – increasing your income in some way – is a valid strategy, it’s usually easier to start by reducing how much you spend by lowering your necessary expenses and cutting out unnecessary expenses.
If you create a budget, you may find that when you know exactly where your money is going, there are more things you can cut down on than you thought. When it comes to budgeting, a huge issue is being able to tell the difference between wants and needs – read more about this and other budgeting tips here.
A small strategy that can make a big difference is taking notice of price changes, and always shopping at the most affordable places with the best deals. Taking into account little things, like making sure your phone is using Wi-Fi whenever possible, can save you money in the long run.
Being financially secure isn’t simply a matter of how much money you earn, it’s about how much you have left over. You could earn incredible amounts of money, and still be financially insecure if you spend that money unwisely. It’s actually possible to be more financially secure than someone who earns more than you! Financial security is a goal that you can work towards every day, starting now, just by changing the way you think about (and spend!) your money.