5 steps to financial security

5 steps to financial security

5 steps to financial security

It is an absolute human right to ensure the security of oneself and one’s family, including financial security. Everyone thinks about the fact that at one moment he would not want to go bankrupt, be left without means of livelihood or lose a stable job. But it is even more important for all of us to understand that in the upcoming retirement we will have enough money to support ourselves and our family, maintain the comfort of home and possibly for some hobbies.

In order to ensure financial security, it is worth starting the path now, because any wrong decision can hit the budget or throw you back several stages.

But let’s not despair, everything is actually not as difficult as it seems. There are several important steps that will help you create personal financial security and insure yourself to the maximum from losing money.

Step 1. Money loves silence

Do not let your friends and relatives know about your income and savings. Life can turn around for you in the most unpredictable way.

Step 2. Clear planning

It is customary to plan not only your own day, but also a budget. A personal financial plan will be your main assistant in achieving results. In fact, this is a strategy for approaching your financial goals, through balancing between income and expenses. Ideally, income should significantly exceed expenses and allow you to accumulate funds.

Step 3. Profit growth

Identify for yourself all possible sources of income increase: a request for a salary increase, training to move to a better-paid position, professional development or even a change of field of work. 

In addition, there are many alternative options for additional income. This is due to your skills-photo shooting, video editing, knitting and much more. The state allows you to get the status of self-employed for such activities. This will allow you to conduct official activities with savings for retirement, as well as pay taxes at a lower rate.

Step 4. The principle of “not keeping all the eggs in one basket”

This rule can be considered golden in the financial world. When stocks sink significantly from your portfolio, for example, in a crisis, the income from renting an apartment will remain stable or a bank account where the required amount was stored will help.

Ideally, save money in different areas: gold, real estate, securities, currency, bank accounts, and so on.

Remember that you cannot always predict external factors and it is diversification that can solve the problem.

Step 5. Financial cushion

Always have an airbag, it should become an inviolable reserve. You can use it only in emergency cases: a sudden illness that needs to be cured, an unforeseen breakdown of equipment vital for work, etc.

This is only part of the rules of financial security, which should be started and implemented into your permanent life.

Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents