Security means different things to different people. In some ways, it’s really all a state of mind. If you put two people in the same circumstance, one might be petrified while the other is cool as a cucumber.
But in a more practical way, financial security does have a very objective meaning. Those with higher incomes — and more expenses — might need many more resources to feel financially secure than a lower middle class family scraping by.
At some level, though, you will never have actual financial security unless you can reliably support your family, prepare for a rainy day, and provide your loved ones with the opportunities they need to enrich themselves and lead a fulfilling life.
How do you do it? Well, there is no secret to success. The best path is getting a well-paying job, being sensible with your earnings, saving as much as you can, and making some good investments in gold by checking out Rosland Capital reviews. But there are a few other recommendations everyone should follow, and the following three tips are surefire ways to make your family that much more financially secure.
Pay Down Debt
Carrying debt is like carrying an anchor. Yes, there is some “good debt.” It’s very reasonable to borrow some money to get a good education or to buy a home. But holding a lot of consumer debt in credit cards is just throwing away money every month on interest.
So you want to do everything you can to get that number to zero as fast as possible. You shouldn’t entirely deplete your savings to do this. You need at least an emergency fund and should retain up to six months of living expenses if you already have a sizable reserve.
But every other dollar needs to go toward crushing your debt burden. Cut services you don’t need, postpone vacations, and stop buying new clothes, gadgets, and fancy meals. Once you get to zero credit card debt, then you can start enjoying these things again (in moderation). But, for now, tighten the belt and find some free hobbies until you put your family into a better financial position for the long haul.
Switch for Savings
Along with killing debt, many financial advisors recommend cutting out all the extraneous purchases you don’t need. You must be realistic and start living within your means. Getting rid of discretionary line items — like subscription meal boxes and even cable TV — is a no-brainer as you get on better footing.
But there are other things you probably shouldn’t — or even can’t — take down all the way to zero. A gym membership, for example, is a good investment in your health. But if you go to the fanciest fitness center, you can potentially save hundreds of dollars each year by finding a more affordable option.
The same goes for switching your auto insurance to a better plan with USAA, which should lower your premium and offer benefits like payment flexibility, roadside assistance, and personal injury protection. You can also shop around on your internet service provider, mobile carrier, or even utilities. Find all the fat you can and get rid of it.
Devise a Longer-Term Plan
If you’ve committed to these first two ideas, you eventually will have a little bit of extra money lying around. This is great — but you don’t want to just slowly start ramping up your lifestyle and fall back into a place of insecurity.
And the best way to do this is to start really thinking and planning out what you want to do with your money. If your best option is buying a home, this decision may be easy. You set your goal and start squirreling away money until you get there.
But other things, like smart investments (into retirement accounts, mutual funds, real estate, or other bonds and securities), take more consideration. And within this you need to think strategically about other large and even mid-size purchases so that they don’t disrupt your larger goals. You may very well need a new car or a new high-end computer for work at some point. Other electronics, transportation, and even vacations fit in here too.
Just don’t do anything on a whim. Understand how any purchase of even $300 aligns with your overall objectives. If it works, great! If it doesn’t, understand how you can make it fit or learn to live without it.
Finding Financial Security
Nothing is more important than family. This is such a widely held belief that it almost goes without saying. But beyond just the emotional support and love you show, it’s your responsibility to do everything you can to keep them safe — in all ways.
We can’t plan for everything and some fallbacks are unavoidable. You have to do as much as possible, however. And you can get a great start on financial security by paying down credit card debt, switching for savings on key services and insurance, and devising a long-term strategy for investments, transportation costs, and other key purchases.
This alone won’t have you sitting on easy street forever in one fell swoop. But you will be one step closer to providing your family with the peace of mind and financial foundation it needs to sleep well at night for years to come.