Financial Security...how to get some

Do you have financial security?

1.     Do you know how you would pay the bills if you or your partner lost a job or was otherwise unable to work?

2.     Do you have $10,000 to $15,000 set aside for a rainy day?

3.     Do you save for future purchases and the maintenance and repair of your possessions?

 If you answered “no”, to any of these questions, then you are experiencing financial insecurity. 

 Financial security is peace of mind.  The peace of mind created by:

·      Making purchases only when you can afford to pay cash.  

·      Being prepared for major financial emergencies with financial reserves and insurance.

·      The ability to easily reduce your monthly outflow of cash without jeopardizing your basic needs and comforts.

 Financial security is achieved by putting in place some key tools: a realistic budget, an emergency fund equal to three to six months of expenses, proper levels of insurance and a method for saving for future purchases and expenses.  Financial security is not the same thing as financial independence.  Financial independence is the ability to pay for your basic needs and comforts from a source other than paid employment.  Financial security is the path you must journey on to reach true financial independence.

 The good news is that there is a simple - not easy, but simple - way to move from financial insecurity to financial security.  It requires a dream, a vision and discipline. The result is the opportunity to live your dreams and a life of true financial independence.  

Matt Kelly is a financial independence coach.  Momentum: Financial Independence Coaching is dedicated to helping you take control of your personal finances.  We offer personal coaching and a four-week class called Momentum: Creating True Financial Independence.  Call 749-0644 or email matt.kelly.durango@gmail.com with questions.