Last updated on July 15th, 2020 at 01:42 pm
Finance security is about money management in the present so that it’ll serve well in the future.
Money is a need for every one of us. But the reality is, you need it more in the future than in the present.
Because in present, you know what you need. But the future is unpredictable.
So here comes the concept of Financial Security.
It’s always better to have that financial education since the day you start earning from your 20s.
Because your 20s are very crucial for making and managing money,also to achieve financial security.
Not Focusing on current spending & earning, is the reason we have larger debts. And need for Read further…
Ways to achieve financial security and money management in 20s…
Understand for your Earning Resources
Take a look at the present, from where you get the money. Find out the source, which brings finance for you.
Also, look for the future market of the present source as well. Count on how much increment there will be in finance sources in the future.
That will give you a clear idea, and also create another’s ways for money to come in your pockets.
Don’t rely on the single income, Just don’t.
Money management for investment, Savings
Saving a money sole will not give you financial security in the future.
When you save & manage money, the size of the finance remains the same, or it increases like nothing at all.
So it’s better to invest more than a save. Saving can give you short term financial planning.
But Investing your money generates the sources of income for you.
Mind your habits, mind your financial budget
May you have that good earning so you can buy all the things you want.
But remember the prices of thing increases faster than the incomes.
So instead of keep buying the latest things to stay updated, keep your habits under control.
Think about Do you really need that updated mobile phones, or that branded new stuff now?
It’s your recent purchase habit that impacts on financial security.
So mind your habits well, because it is the reason why you will not have to see a Price tag in the future.
Look for personal & family Health
Life is unpredictable. So it’s a must for everyone to take personal life insurance, over an uncertain future.
You also need to ensure your family against that.
Make sure you covered your family & yourself prepared for the health issue before it happens.
Think in advance, because life is precious & uncertain. So Be prepared for that.
Make a habit of saving, than wasting
Saving money is the sign that you value the money.
Your purchase habit can dig a hole in your pocket, so instead of buying things not useful, make sure to save that money for the future.
Every month, make some portion of your income as saving purpose. And follow that as well.
You can skip that plan for a movie or dinner with friends and save money.
All you need yo do is seriously think about spending money and that’s how you can think positive and be happy about your future.
Figure out what is Need & Desire
When we understand the difference between Need & Desire, we save ourselves from financial insecurity.
Actually, we spend most of our money on the things which we don’t need.
We need to ask a question before making a big buy, Is it my need which I’m fulfilling or my desires?
Need have to fulfill as it occurs, but we can postpone our desire.
Financial security is itself shows how you manage your money or present & future needs.
Think in advance: Retirements
In order to achieve financial security, you have to think in advance.
Think about your retirement from now, even if you have just started your career.
The earlier you follow, the better it is for you.
Think about your retirement plan and life after retiring from work.
Start funding for your retirement at an early ages, so you don’t have to worry later on.
Follow money management by thinking about future needs.
Don’t place yourself in a situation like- things i wish i knew it earlier, so better start work on it now.
Try not to incur more Debts
Before applying for the credit card, ask yourself: Do you really need this?
Remember having a credit card may seem a luxury to you, but it’s an investment for your banks, a cost that you must avoid.
Control your purchase habits, or if possible then make a habit to do the payment on cash only.
This way your money will not be wasted unnecessarily.
Not now but, this definitely one factor for financial security.
Because when you pay in cash, you tend to spend it more wisely, than to pay via cards.
Also Read: Life Lessons From Coronavirus: Do We Really Learn the Important Lesson, Now??
Mind your financial flows
Make a habit to set the predetermined budget and money management.
No matter how much money you make, but a budget is a requirement for everyone.
Having a budget will be the reason for your financial security.
Your budget gives you an idea about what is needed and controls your unnecessary spending so that you know where your money has gone.
Remember to work on financial security from your 20s, that’s better.
The earlier you start valuing the money, the better you save and invest rather than just buying stuff for temporary pleasures.
Or It’ll be a lifetime regrets from 20s, wishing that you start early also know this lesson.
Money leaves them, who don’t know what to Buy,
Stays with those, who know how to save,
And secure them, who know how & Where to Manage.
Writer’s note:
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