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Steps to Financial Security

Posted February 9

Budgeting

Ever wonder how to get from where you are now to that elusive dream called Financial Security?

Read on for some useful advice from Gary Foreman of The Dollar Stretcher.

7 Steps to Financial Security

By: Gary Foreman

"It's easy to endure adversity if it happens to someone else." ~ Mark Twain

We'd all like to have financial security or the assurance that we'll have enough money tomorrow and the day after that.

Many think that financial security can be found in a fat 401k account, investment real estate, or a stash of gold and silver coins. While those things may help keep you financially secure, they can disappear quickly. Witness what happened to the markets in 2008 and 2009.

There are some things that you can do to protect yourself and your dependents.

You're probably already taking the first step, which is getting out of debt.

Debt can cause trouble under the best of circumstances. It certainly takes away financial security. Creditors can demand repayment even if that means that you cannot feed or shelter your family, which can cause instant insecurity!

Your second step is to create an emergency fund. No one gets through life without some unexpected events that affect their finances. Having an emergency fund takes the sting out of life's surprises. If the car needs repairs or you need to buy a new fridge, the money is there. You won't stress figuring out how to pay the bills.

Step three requires you to prepare for life's big events. Most often, you'll use insurance to cover these big ticket expenses like auto accidents, health problems, house fire, etc. Knowing that these events can't swamp your finances provides needed security.

The next step involves saving for the time in your life when you no longer have an income. For most of us, it'll be at retirement, but for others, it could be as a stay-at-home parent or due to a disability. In any case, gradually accumulating savings for the time that you no longer have an income builds financial security.

The fifth step calls for you to .........To read the rest of the article, head to www.Stretcher.com HERE.

My thanks to Gary at www.Stretcher.com for sharing this excerpt. Head to www.Stretcher.com for many more frugal living articles.

2 Comments

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  • Faye Prosser -WRAL Smart Shopper Feb 9, 10:54 p.m.

    ctya - I agree! Gary was a financial adviser for years and does a great job with his website, stretcher.com.

  • ctya Feb 9, 6:44 p.m.

    Good read!