- Are you looking to let go of all your debts and become responsible when it comes to your finances?
- Do you know how you can emerge from debt to a position of financial security within a short period?
- Have you tried listening to financial experts and adopting their tips and strategies towards ensuring financial security?
According to a study conducted by a leading global financial body, 60% of the world’s population is not financially secure. In other words, 60% of the world is under debt, borrowings, do not have savings or follows improper financial activities.
We often forget that when it comes to financial planning, the results are not immediate. You plan your finances to ensure that you tide over emergencies, enjoy your retirement, and are free from the financial and mental effects of debt.
In this article, we are going to help you understand the basics of financial security. We are also going to look at the top five ways you can become financially secure in 2020.
5 Ways to achieve Financial Security in 2020: The List
1. Say Good-Bye to your Credit Cards-
The only intention of credit cards is to promote a vicious cycle of debts and counter debts. This is why the first thing you need to do in order to become financially secure is to stop using them. No matter what best practices the proponent’s advocate, it is best to keep them away.
While many of us feel that the rewards and benefits of using credit cards are great, experts state that it is just baiting! Given a choice between escaping from debt and having access to an airport lounge should be an easy decision.
2. Investing in the Right Areas and Assets-
If you are looking to become financially secure, you need to choose the right financial assets to invest in. In 2020, cryptocurrencies like Bitcoin are proving to be major game-changers for investors. They are safe, have high returns, and should be invested in for long-term gains. You can always visit the official website to know more.
Many people make the mistake of investing in real estate, even in fragile markets. If you want to be financially secure, you need to go for investments, which are low-risk. Stocks and shares, real estate, and other areas of investment are very risky to invest in.
2. Saving 20% of all your Income-
According to financial analysts, people should end up saving 20% of their entire income. Savings is your promise to your future financial self. It is one of the easiest and convenient ways to ensure financial security. This can also be your bailout plan for emergencies.
What many fail to realize is that savings more than anything is a life habit. This is the reason why even after knowing about all its benefits, very few people can actually save. If you are looking to be financially secure and responsible, you need to start saving.
4. Open up a Second Source of Income-
Most jobs and services allow us to pay our bills and lead everyday lives in a rather satisfying manner. The amount earned is basic and will never allow you to pay off your debts or save. This is why most of us need to have a second source of income.
This can be a part-time gig, which can be saved by creating an emergency fund for your family. Over a period, you will see that you have saved enough to ensure that you are debt-free. You can work on Freelancer platforms or take up part-time jobs to help you with a second income source.
5. Live within your means-
There are many among us who indulge in unnecessary expenditure. This is something, which has been fuelled with the advent of social media. Experts suggest that at no point of time, your monthly income should exceed your monthly expenditure.
If it does, it means you will either use your credit card, borrow money, or do something, which is antithetical to being financially secure. This is why it is best to create monthly budgets, fix expenditure priorities, and not be influenced by what others do on social media.
If becoming financially secure was easy, 60% of the world would have done it already. Financial security requires a lot of discipline, commitment, and hard work. However, it can have a positive effect on your mental and physical health. It also helps in improving relationships with your near and dear ones.