What Are Strong Strategies for Financial Security?

The sooner you start using the financial strategies discussed previously, the easier it will be for you to reach financial freedom and security. 

In a report done by the Consumer Financial Protection Bureau (CFPB), they defined financial well-being as "a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life" (CFPB, 2015 Links to an external site.)

The CFPB found four, financial well-being elements:

  • Be in control over your day-to-day, month-to-month finances
  • Have financial freedom to make choices to enjoy life
  • Be able to absorb financial shock
  • Be on track to meet your financial goals

Below are some strategies that will help you reach your present and future financial goals:

1. Invest in things that will maximize your earning potentials like your skills and education.

2. Stick to a budget and predict the type of budget you may need to switch to given the following months' savings goals.

3. Maintain an emergency fund and have a liquid saving account

4. Pay off your debt.

5. Change your mindset around credit cards as them being financially convenient, not a source of income.

 

Emergency-Funds_1100x700(1).jpg

 

6. Recognize your needs and wants. Allow yourself a few inexpensive treats in order to not feel deprived.

7. Have a diverse investment portfolio.

8. Save for your short-term and long-term goals. Factor your future goals in your current spending habits.

9. Monitor your financial history, credit score, and credit report.

10. Seek advice when you need it and make informed financial decisions based on reliable data.

 

Practice Questions

1. Which of these three strategies will you be implementing first into your life?

2. How will you go about implementing the strategies you listed in number one?

 

Next Chapter:

Check Your Knowledge: After Graduation

All Chapters:

[Chapter 1]: Graduating Gracefully

[Chapter 2]: What is Commonly Overlooked when Job Searching?

[Chapter 3]: What are The Fundamentals I Need to Know as a Successful Graduate?

[Chapter 4]: How Can I Accommodate My Future in My Current Plans?

[Chapter 5]: What Are Strong Strategies for Financial Security?