For many of us, financial security might feel like an unattainable dream. But financial security is within your reach and there is a way for you to be the master of your financial security destiny!
What does financial security mean?
Some people believe you need to be a millionaire to be financially secure. This isn’t the case: there have been endless entrepreneurs, athletes, and film stars who’ve made a fortune and then lost it all. The truth is, you don’t need a sports car or private jet to be financially secure – ultimately, creating your own financial security means that you’re in control of your money, and you’re not worried about paying the bills or covering an emergency.
Financial security means different things for different people. So, here are three factors to consider when determining what financial security could mean for you:
It’s hard to feel financially secure when carrying significant debt.With this is mind some types of debt are actually necessary, as very few people have the initial capital to pay for a house or start a small business.
Using credit for everyday items, such as clothes, tech gadgets, or groceries isn’t likely to help you achieve and create your own financial security. Credit cards require monthly payments and have very high-interest rates.
Taking a loan or getting funding to start your own business on the other hand is a step in the right direction to becoming financially secure.
Being in control of your money
If someone makes R200,000 per year but spends R220,000, are they financially secure? The answer is no. This person is digging themselves into debt and will struggle to pay the bills.
So, if we want to learn how to become financially secure, we must first learn how to budget.
Budgeting is the process used to control money – to tell it where to go, instead of wondering where it went. When you’re in control of your money, you’re far more likely to feel financially secure and set the stage to create your own financial security. If you choose to kick start your own small business, budgeting is even more important. All costs must be accounted for in order to turn a profit.
Be prepared for emergencies
There are many people who don’t have enough money to pay for health, home or insurance.
Living month to month, or hand to mouth, without savings or suitable insurance can affect your sense of financial security and even your mental health!
To feel financially secure, you need to set achievable goals, both personally and in business, as this can lead to a sound state of mind and help you find the motivation to discover new revenue sources.
Increasing your financial security
If you’re not becoming more financially secure, there’s a chance that you’re becoming less financially secure. This is not a place you want to be! Creating your own financial security means steady, reliable progress. This could mean paying off your credit card, mortgage on your house, adding to a savings account and investing for retirement.
Zhaun’s helps you create sustainable business opportunities and is instrumental in helping you create your own financial security.