Steps to Being Financially Secure
Before I start with this post, I would like to thank all those who have shared their valuable inputs on my last post, "Should I Quit?" Your comments and words of encouragement are very well appreciated. Knowing and learning from other people's experiences is truly a big help in coming up with a very important decision especially if that decision may affect your family and your life in general. Now, speaking about life affecting decisions, I guess securing our family's future has always been the goal of everyone.
There are various ways to assess our financial security and I think this is the main key in determining how we are to go about our life in the present. The following are the key steps to attaining financial security:
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- First and foremost, we have to know where we are financially. To do this, we have to make a list of our assets and liabilities. We have to identify what we currently have like savings, receivables, jewelries, bonds and properties. Next, we have to make a list of what we owe like credit card balances and loans. Do your math. Subtract what you owe from what you own and from there we could identify our net worth.
- Determine the financial phase we are currently in. It is very important to identify whether we are just starting, building up, growing or have reached a total financial freedom. Starting up stage are for those who had just graduated from college and just started with their jobs. Building up stage is for those who are having a stable source of income and are able to make some investments out of their income. Growing up stage is for those who have substantial investments and are working on growing their investments, and the final stage is the total financial freedom where we are already enjoying the fruits of our labor where we do not need to work but just enjoying the income generated by our investments.
- Make a plan. After we have identified which phase we are in, it's time to set our goals. We have to make a budget and learn to have a clearer view of our income versus our expenses. We must be able to figure out if our monthly earnings is enough to cover for our monthly expenses. If not, or if it's just balance, then we have to start working out for new ways to augment our income.
- Make a budget. If our earnings is more than our expenses, then we can very well progress with the build up stage by saving enough to work on future investments. Stick with the budget. Allocate a certain percentage of our earnings to savings and just try to live with what was left.
- Evaluate your expenses and examine your purchases. Try spending on things that will put more money in your pocket.
- Invest on health insurance plan or make sure we are contributing to something like Phil Health to protect ourselves and our family in times of unforeseen events. Better yet, allocate some funds for health purposes. Take appropriate vitamins, go for regular medical check ups and focus on health and wellness. Health is wealth.
- Get out of debts. This is a must in order for us to have a stress free life. Avoid getting into unnecessary debts where possible. If we have to, make sure it's being paid on time to avoid paying big interests.
- Share our blessings and be a blessings to others by showing good examples and taking part in community and church projects. This can create a positive energy that may attract more blessings because the more we feel blessed, the more we tend to get additional blessings.
Enjoy life and remember that some of the best things in life are free. :)