There is more to financial security than having a job and receiving a regular paycheck. After
all, the paycheck will only provide security for as long as the job lasts. Your goal should be to
turn that income into wealth, so you’ll have money to fall back on if your job disappears.
If you want to know exactly how you can do just that, here are the six steps to achieving
financial security for your family.
Step One: Live Below Your Means
Deferred gratification really can pay off. Rather than buying items that provide temporary,
instant happiness, set the money aside so that you can one day buy your dream home, car,
or vacation, which will give long-term satisfaction. To do so, you must aim to live below your
means as much as possible so that you can build up a healthy nest egg for both you and
Step Two: Save at Least 10% of Your Income
While your goal should be to save as much money as you can throughout the years, you
should save a minimum of 10% of your income each month. It will ensure you save a set
amount to remain on target, and anything else will be an added bonus.
Step Three: Find the Right Life Insurance Plan
It’s important to be practical when raising a family, which is why you must ensure your family
will have some financial protection should you pass away. For this reason, you must find the
right insurance plan, which could cover the cost of a funeral, debts or even a mortgage. Take
your pick from the best term life insurance options to suit your budget.
Step Four: Invest in Yourself
It’s never too late to return to education, even if you’re a busy parent. The more education
you have, the bigger your salary will be. A study found that American workers who have a
college degree earn an incredible 74% more than those with a high school degree. It might,
therefore, pay to invest in your education to enjoy a greater future.
Step Five: Stay on Budget
Many families face financial hardship as they allow their cashflow to spiral out of control.
Ensure you are never worried about how you’ll pay the mortgage or gas bill by staying on
Regularly compare next month’s expenses against your expected income, so you will know
exactly how much money you will have to spend once you have paid for your mortgage/rent,
groceries, transportation, clothing, insurance, savings, and utility bills.
Step Six: Be Thrifty
Being thrifty doesn’t mean being cheap. It means receiving value for your money. For
example, rather than paying full price for a product, negotiate a better rate with a provider,
find a discount code for an online order, or switch brands to receive the same item for less.
Cutting costs here and there will help to keep your family out of the red, and it could lead to a
boost in your savings fund.
This post was written by Bill Clark. Bill is a freelance journalist who specialises in writing about culture and the arts, however will write about anything that piques his interest including business, travel and lifestyle. He can be reached on Twitter @BilboClark01.