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Economic
security means your quality of life is not subject to the whims of
employers, politicians, or nature. If you have built a wall of security
around your economic well being you are not as vulnerable to mismanagement
of money by politicians, employers who cut your hours in order to pay for
their bonuses, or nature which challenges you with sickness or natural
disasters. Are your personal habits and behaviors strengthening or weakening your personal economic well being? Here are five positive behaviors that strengthen your economic security over time. Practicing these behaviors allows you to better handle challenges, like a reduction in pay or major illness, that threaten your financial well being.
A good financial plan includes these things: A written budget (see how here) A credit report and score review (see how here) A recordkeeping system (see how here) A back up plan that considers economic setbacks such as natural disaster, illness, or job loss An investment plan A plan to reduce your costs while maintaining the same level of quality you are used to Developing your skills and education thus making yourself marketable A plan to reduce your tax liability (see how here) Dont know how to do one or any of these? That is ok as long as discovering how to is part of the plan!
Identify your expenses, even the little things. Where is your money going? Take the time to write the budget. Manage and modify your budget as your circumstances change. Utilize your budget in order to identify areas where you can cut costs. Sticking to it your budget is no good unless you stick to it.
YOU are the most important asset in your life. What are you doing in order to protect and build your most important asset? Physically Julian Michaels, from the TV show Biggest Loser, once said without a foundation of health you will never achieve wealth Mentally do you continuously upgrade your skills (education and new experiences)? Spiritually do you feel good about yourself (accomplishments)? Economically are you more financially dependent or independent of others?
The single most important difference between economic security (you control outcomes) and economic vulnerability (outside influences control you) is work. You must work on strengthening your economic position every day. Even small efforts make a difference. What is one small thing you can do today to ensure a more secure tomorrow? How about take a class, run a mile, fix a leak, check your credit report, or kiss your spouse? Over time, small actions build a foundation on which greater security is achieved through your employment marketability, health, properly functioning home, creditworthiness, and marital happiness, for example. If one of these example areas are failing what impact will that have on your financial situation? What could these cost you: unemployable, in the hospital, major plumbing repairs, unable to get a loan, or divorce?
-Living within your means is avoiding debt. Debt is quicksand. Once you have stepped into it is easy to get pulled in and very hard to get pulled out -Accept that if your paycheck is $500.00 you can not live a $600.00 lifestyle. -Once you have arranged your lifestyle around your means start increasing your means: Get a 2nd job, get a better job, start a microbusiness, reduce your taxes, be sure you are getting 125% value for every dollar you spend or are paying 25% less than everyone else |
