When you think about financial security, you might think about winning the lottery or having so much cash in the bank that you don’t know how to spend it. You might feel like it’s all about having riches- which can make it feel like something that’s completely out of reach.
But this simply isn’t true, you can be financially stable without being absolutely loaded. You can be a regular person working a normal job, it’s completely possible if you go about things the right way. Here are some ideas.
#1 Buy your home
Renting can be useful for some people. When you’re young and first starting out in adulthood, renting a property means you’re not tied to a place for any length of time and can find out what it’s like living in different locations. It enables you to work out what you like from property and what you don’t.
But eventually, buying is always the best. You’re paying roughly the same amount of money each month, but it all goes towards something you’ll eventually own. It also means that later down the line when you retire, you have a home that you don’t need to pay any more towards.
#2 Have two savings accounts
It’s always worth having two savings account. The first should be your life savings- money that’s only touched in a genuine emergency. If you’re saving for a deposit for a house then this could also go into this fund- it’s cash that’s not to be dipped into and spent freely.
The second savings account is to buy the things you want and need, from new cars to holidays to new appliances when old ones break down. It’s a buffer against unexpected expenses such as car repairs, meaning if you need it you have instant access to cash without having to fall into debt.
#3 Get insured
Getting insured means that if the worst were to happen, you won’t end up out of pocket. From home to health to dental to pet insurance, you could even get a life insurance quote– a few dollars a month could save you thousands in the long run.
Have a think about what you most need to protect and which insurances are relevant to you, and do some research to find the best policies.
#4 Stick to a budget
Finally, it doesn’t matter how much you earn- if you overspend then you’ll always be in a pickle with money. Knowing how to budget gives you stability, it ensures all of your bills are paid before anything else and that luxuries and extras don’t come out of money that’s been accounted for elsewhere.
Find a system that works for you, it could be a budgeting app, excel spreadsheets, a notepad or calendar. Know how much you have coming in, and what needs to go out.
So what are you doing to gain more financial security?