Financial security does not come from the amount of money you currently have, it comes from the ability to get more of it whenever you want.Michael Neill
Financial security is having enough money saved to cover for all your future financial goals and also any emergencies that may arise. We say you have financial security when your expenses cannot overlap your income. Some of the habits which one needs to develop to attain financial security are at a young age are;
The first habit you need to develop so as to realise financial security at young age is the habit of saving. Make saving an habit. The main purpose for saving here is to: INVEST! Remember ;Don’t save to save, save to invest. Investing after saving will make sure you have a steady flow of cash that will help you in attaining financial security.
2. Avoid debts
Holt once said, “A low credit card balance, is a great sign that one tends to live within their means.” Debts are the devil. When you are constantly in debt it shows you are not good at managing the income you are getting. It shows you are living beyond your means. It shows your expenses are overlapping your income. Therefore you cannot attain financial security if you are constantly in debt. You hence need to avoid being in debt at all cost. And if you are currently in debt you should look for a means to eliminate it. Unless you avoid debts forget about ever attaining financial security.
One of the most important habits that will go a long way in helping you realise financial security at a young age is the habit of budgetting. Through budgetting you will know how much money you have coming in, how much should you use, how much should you save. Generally through budgetting you will account for each and every penny and this will help you save more money, it will help you pay your bills immediately which is a good habit towards your financial security dream. Through budgetting you will also control impulse spending and this will help in saving hence more money to invest which will result in financial security. So BUDGET! BUDGET! AND BUDGET!
The habit of investing will make sure you see a steady flow of cash coming in. It will also be a boost of your normal job as more money will be flowing into your bank account. This will help in realising your financial security.
5. Increase your net worth
You need to look towards increasing your net worth if you want financial security. Look for better paying jobs, work harder for promotions and stuff. All I’m trying to put across is do what you have to do(everything and anything)to make you increase your net worth. You better work hadder now and be safer in the future than be comfortable now and live a miserable life later. So look to increase your net worth.
While there might be some habits that may be important in attaining your financial goals, these five are very important.