WHAT IS FINANCIAL SECURITY?
Financial Security means having lots of money to cover our basic requirements, in case of any unforeseen events. In short financial security refers to securing our future financial needs. Financial security is a form of managing our finances in a smart way, which will not only satisfy our future needs but also gives us peace of mind.
HOW TO SECURE YOUR FINANCE?
Financial security involves securing your future in a wise manner, by making financial planning for your future. There are many steps required to be financially secure. These involve budgeting your income, planning long term goals, building an emergency fund, retirement planning, planning for future educational needs, building a habit of regular saving, planning of income protection in case of loss of a job, having a plan of investment which will give you regular income without working.
WAYS TO SECURE YOUR FINANCE WISELY.
There are many ways to secure finance wisely. The first and foremost way to be financially secure is to start saving money at an early age. Like starting with a nominal amount initially, which will help to build a corpus at the time of retirement.
By educating oneself with various saving options.
By taking adequate health insurance, which is mandatory nowadays.
BY taking adequate life insurance, to safeguard the life and future needs of our loved ones
By generating a way of making passive income along with active income
By minimizing your spending
By maximizing your saving through various investment options available in the market.
WHO NEEDS FINANCIAL SECURITY?
“Everybody needs Financial Security”
Even a newborn child needs financial security, for his/her bright future. It is the responsibility of each and every parent to safeguard their kids’ future by doing proper financial planning, like taking appropriate Education Plan for the kids’ future educational needs. Since educational expenses are increasing day by day. Based on the current rate of inflation, it is essential for parents to set aside 10% of their monthly income for their child’s future educational needs.
Teenagers also need to plan their finance wisely, since planning to manage their finance in an early age will help them to build a corpus at the time of their retirement. Teenagers should start saving money at a very young age, this will help them to develop a habit of saving money and will also lead them to live a disciplined life. Teenagers are in a position to earn more money and have less responsibility compared to a young adult.
Adult people also need financial planning to lead a happy and tension free life, since they have lots of responsibility on to their shoulders at this stage of life. They have to take care of their parents along with their spouse and kids. Family is dependent on the life of breadwinners. And at the same time, they have to plan for their retirement. Planning for retirement will help them to lead a dignified life with not depending on to their children.
IMPORTANCE OF FINANCIAL SECURITY
Financial Security is a very important aspect of life. By planning your financial needs in a wise manner, people not only attain Financial Security but at the same time will be in a position to get financial freedom. Managing finance is a very crucial factor. But if it is managed in a disciplined manner it will not only help the individual to attain financial security but also secure the life of their entire family.