Building financial security for oneself – 5 measures to carry out
- June 4, 2019
- Posted by: consulting
- Category: Uncategorized
One of the highest factors of stress in men is worrying about the future and our financial needs.Financial security isn’t making or having a certain amount of money. There are many people who have made millions of dollars who are not financially secure. Stories about musicians, superstar athletes and multi-million-dollar lottery winners who end up in bankruptcy court are so common that they’ve become a cliche. The way to reduce monetary stress and worry is to wisely create a financial plan and stick to it. The needs of each family are different and the circumstances vary, so there is no one-size-fits-all solution.Feeling financially secure requires knowing what your assets and liabilities are, as well as how your income compares to your expenses. If you aren’t tracking these, you might not know you’re struggling. That said, there are key elements of financial planning that are common to us all in building financial security. Let’s evaluate the 5 most important measures:
- Seeking professional help: Most of the peoplewho aren’t in the financial business truly know little to nothing about how money actually works.The choices are plentiful, but the most important advice provided by financial experts is to find a source that you are comfortable with and trust.No matter where you turn, just be sure to check references and seek prior testimonies of clients.
- Getting insured: Secure term life insurance, health insurance, home insurance, and automobile insurance (both collision and liability). It’s a lengthy list and we need it all. One of the reasons for the aforementioned stress is worrying about the things that could happen. That’s exactly what insurance is for. Once again, it’s better to find a professional you trust and get your family covered so you can sleep peacefully at night.
- Having proper savings: An old and wise church formula for money management is the 10-10-80 model. The first 10% of everything you make goes to tithing. The second 10% goes to savings. You live off the remaining 80%. Following this formula faithfully is a guaranteed recipe for life success. Savings are critical for extra expenses that seem to come in rapid-fire succession as your family grows.
- Debt management:Debt is a huge concern that keeps our finances from growing and blossoming and is also a stone that weighs heavy on our minds. One must do everything one can to eliminate it. Financial planners and credit counsellors can help you achieve a state of financial contentedness where you have ample savings with a great reduction in debt.
- Investing for retirement: The idea of investment is to gain a return that will outpace inflation. How one goes about that is again varied and best left to trusted professional guidance. It is essential to have a healthy and robust retirement investment plan so that you may enjoy your later years.