Financial security is the heart-beat of everyone on earth. But like I said in my first post on financial security, there are certain things that must be done before we can begin to enjoy financial security or freedom.
A must read: Understanding and Achieving Financial Security
In this post, I will be talking about some 3 very important aspect of your life for ensuring financial freedom of your business in the now and in the future. Here are 3 important aspects to consider when you are planning your financial security.
i) What you have in the now which is your ASSETS.
ii) What you are earning now which is your INCOME.
iii) The amount you spend now which is your EXPENDITURE.
To enable you understand your present financial position in your quest for financial security, you have to first clearly understand your present position as far as your assets, and income and expenditure are concerned.
Let us look at each of these three aspects to see how they affect your financial security and what you can do in these three areas in order to make progress your financial security.
1. ASSETS: This is what you own as properties in the now; this forms the foundation on which your financial security is based.
The more properties you possess in the now, the greater your chances of financial security is guaranteed. This is a good time to enhance the volume of your assets by investing in an area such as real estate where prices are currently low and opportunities abound.
2. INCOME: This aspect of financial security refers to the money you earn from a job or business, or money earned as interest on capital or any other source of steady revenue. Income also means every money that comes to your hand.
This is an aspect that is particularly relevant in today’s economic climate, where job security has become a matter of concern for many, especially in industries that have been hard hit by the recession.
If you feel that there is no guarantee that you will still have your job in a few months’ time, you would be wise to look for alternate sources of income, such as a home- based business, or network marketing, which can and has proven to be profitable for many.
3. EXPENDITURE: This is one area where only you have control and can make a lot of difference. Remember the saying “A PENNY SAVED IS A PENNY EARNED” This is particularly true in these trying and uncertain seasons.
To improve your financial security, spending less and saving more is the 1st step to take.
Spend selectively. Make every dime count. Opt for value-for-money alternatives each time, all the time.
When your income, assets and expenditure are well balanced and in harmony with each other, your financial position is secure and you can be guaranteed of financial security.