How to be financially secure

moneyAt some point, we all want to stop worrying about money. Ideally, we’d want to have enough to afford some lifestyle that is pleasant, while not worrying about whether we can pay the bills on time. But, for many of us, that requires a great deal of effort and luck. That doesn’t mean it’s impossible – only that we should be making the efforts now.

The most important focus for many is having enough saved. This means taking steps to ensure that you don’t overspend or spend wisely. Having a budget in mind is the key to this success.

But that mindset in general is helpful. As Investopedia highlights:

“Research has shown that those who plan for the future end up with more wealth than those who do not. Successful people are goal oriented: they set goals and develop a plan to achieve them. For example, if you set a goal to pay off your student loans in two years, you’ll have a better chance of achieving this goal than you would if you merely said you wanted to pay off your student loans, but failed to set a timetable.”

Paying off those short drains on your income can be highly beneficial, since as you eliminate them, you become more and more free. Financial freedom means not having your finances strangled by debt of any kind, after all. This means, for example, you have more opportunity to invest or take out asset finance for your business, without worrying that you’re incurring yet more debt – since your goal is to minimise it as much as possible.

Of course financial security doesn’t just mean a large savings. As Forbes highlights: “Achieving financial security means more than accumulating wealth. It also means protecting your ability to create wealth.” Real life gets in the way of acquiring and making an income: Sickness, accidents or other life events get in the way of that pay cheque because we’re human and we can’t predict what will occur in the future.

Taking steps to ensure our future is essential, especially when it comes to finances. We want to be in a position where money isn’t an issue, but we won’t get there anytime soon or without making concerted efforts toward doing so.