7 Key Elements to Building Financial Security
When we were young and single, financial security meant we had enough money to pay our rent and go out with our friends on the weekend…and hopefully stash a little extra for a rainy day. When we become fully grown men, get married, and start a family, the priorities and concerns change drastically.
One of the highest factors of stress in men is worrying about the future and our financial needs. The way to reduce monetary stress and worry is to wisely create a financial plan and stick to it. [Tweet This] The needs of each family are different and the circumstances vary, so there is no one-size-fits-all solution. That said, there are key elements of financial planning that are common to us all in building financial security. Here are 7 ways to financial security.
1. Get Professional Help.
Most of us that aren’t in the financial business truly know little to nothing about how money actually works. We need help! The choices are plentiful, but the most important advice we can give is to find a source that you are comfortable with and trust. Dave Ramsey offers his Financial Peace University that teaches common sense and lessons on money management. The program can be found in churches throughout America. You could also seek help from our friends at brightpeak financial. No matter where you turn, just be sure to check references and seek prior testimonies of clients.
2. Get Insured.
Secure term life insurance, health insurance, home insurance, and automobile insurance (both collision and liability). It’s a lengthy list and we need it all. One of the reasons for the aforementioned stress is worrying about the things that could happen. That’s exactly what insurance is for. Once again, find a professional you trust and get your family covered so you can sleep peacefully at night.
3. Create a Well-Funded Savings Account.
An old and wise church formula for money management is 10-10-80. The first 10% of everything you make goes to tithing. The second 10% goes to savings. You live off the remaining 80%. Following this formula faithfully is a surefire recipe for life success. Savings are critical for extra expenses that seem to come in rapid-fire succession as our family grows.
4. Reduce and Erase Debt.
Debt is a burdensome stone that keeps our finances from growing and blossoming and is also a stone that weighs heavy on our minds and hearts. We must do everything we can to eliminate it. Financial planners and credit counselors can help us achieve this.
5. Investing for Retirement.
The idea of investment is to gain a return that will outpace inflation. How one goes about that is again varied and best left to trusted professional guidance. It is essential to have a healthy and robust retirement investment plan so that we may enjoy our later years.
6. Plan for your Children’s Needs.
Will they go to public school or private? What about college? Do you have daughters with weddings to pay for someday? The needs of our children are plentiful and always changing as they grow. As parents, we hope to provide for them. Not to spoil, of course, but to provide in the ways that set them up well for the future.
7. Have a Will.
All of this planning is worthless unless we have specifically and carefully planned out exactly what will happen when we are no longer here. Putting together a Will can be done online rather easily. But for more complicated affairs, it is wise to again seek the help of a professional. When we plan for the things on this list and top it off with a Will that will assure our wishes are carried out and the stress of finances will no longer haunt our dreams.
What is the best financial advice you ever received?