How to Obtain Financial Security

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By derekawalker
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True Financial Security

We've been duped into thinking that financial security is achieved by diversifying our assets and belongings. Find out how to truly obtain financial security.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Some time to think about your options.

Step 1

The first step to take in obtaining financial security is to take a quick inventory of your life. Sometimes we feel a false sense of financial security because we are living comfortably, have a decent job, and our problems are few; however, all of that can change in the blink of eye. Many of us only have one source of income, our day job, and nothing more. Imagine what would happen to you if that job were suddenly eliminated!
To set yourself up for a more secure future, first, write down your skills, assets, and life goals. If you can do this in under ten minutes, you probably have some room for improvement. Consider each of the following steps and think about what you can do to better yourself in that area. All will help to contribute to your financial security.
Step 2

Education. We've heard it all our lives, but education truly is one of our greatest assets. Not only does it make finding a job easier, it also increases our potential pay, our ability to create our own sources of income, and our overall ability to survive in tough situations. If you are done with high school, attend a college or trade school. If you've completed higher education, read a book every month. There are always ways to educate ourselves, and the benefits far outweigh the costs in the long term.
Step 3

Diversify. When I say diversify, I don't just mean to distribute your 401k among various stocks and bonds. True diversification means that having a 401k is only a small piece of your puzzle. All markets are subject to fluctuation, and it is very difficult, even for experts, to predict the ups and downs. Put a little money away every month, but don't put it all in the financial market. Look at real estate, gold, business opportunities, and anything else you deem worthy of your time and money. These assets will all contribute to your financial faucet. Should your lose your job, or your stocks become worthless, you can remain calm because you didn't put all of your eggs in one basket.
Step 4

Decrease your financial dependence. We live in a society of financial slavery. Consider the debts and subscriptions that most Americans are subject to: Mortgages, Auto Loans, Utilities, Cell Phone Contracts, Television Services, etc. Do you really need all of these things? And if you do, is there some way to get them without going into debt or putting yourself in financial slavery? No matter how hard it seems, we can avoid debts, like car loans, if we will save up to buy the things we need. Also, do you really need a new cell phone every two years? That new phone comes with a contract that lengthens your servitude to your carrier for another two years, too. If you can work yourself into a situation where your debts and obligations are minimal, your income stream can be much more flexible when times get tough.
Step 5

In summary, we are a society of instant gratification. We take the easy way out whenever possible. We don't plan for the future, and many of us don't learn from the past. Try to incorporate some of these steps into your life, and you'll be calm when the next financial storm hits home.

Comments

jull14 said

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on 7/2/2009 Excellent article and very helpful. I like the way you explain the steps. We need more article like this one, it is very important to read and write articles that can help others. Thanks for sharing with the ehow community.