GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’re able to read more about oureditorial guidelinesand our products and servicesreview methodology.
20 YearsHelping You Live Richer
Reviewedby Experts
Trusted byMillions of Readers
Financial security: What exactly is it?
Essentially, it means youre not only getting by, but getting by comfortably.
Surveys have shown that most Americans do not feel financially secure, and its understandable why thats the case.
You Have a Robust Emergency Fund
Expert recommendations for how much you have in youremergency fundvary.
You may also want to factor in how many streams of income your household has.
Again, though, the more prepared you are, the better!
You Spend Less Than You Earn
Even millionaires know the importance of spending less than they earn.
Its a key trait of financial security and, in fact, ensures future financial security.
If you spend every penny, you live on the precipice of financial troubles, Kates said.
As the saying goes, Its not what you make; its what you keep.'
Contributing money toward an account isnt enough to beat inflation long-term, Kates said.
Putting your money to work by investing in the market is essential for long-term growth.
Housing is usually one of the largest expenses most people have, Kates said.
The more you spend on housing, the less there is for other essential and discretionary expenses.
Avoiding or eliminating this kind of debt is a huge step toward financial security.
If youre financially secure, you should be able to comfortably balance these two concepts.
Money shouldnt be a stressor or something that you struggle to manage, Kates said.
Building good financial habits will anchor you to achieving your financial goals.
This means having a solid financial plan in place that you are regularly referring to and refreshing.
Outline a clear plan that includes how and why you want to achieve certain goals.
More From GOBankingRates
Share This Article:
