What does finaincially secure mean?
As you noted, the term financially secure can have a variety of meanings.
Here are a couple of viewpoints to look at it from:
1) Current - You are able to meet all debt obligations in a timely manner.
Your have a steady or multiple (better) streams of income from which
you draw livelihood. In the case of a discontinuation of income
streams you have enough
assets put away to meet 3-6 months expenses. You are saving 10-15% of
you income. You have adequate life, medical, diasability, liability
etc coverage.
Consumer debt is at a reasonable level. These are just the tip of the
iceberg.
2) Long Term - You have set out financial goals for you and your family as
far as
retirement, eduaction, leisure etc. You are actively saving, committed
to some type of established program based on realistic estimates
of inflation,
returns, tax effects etc. You have a will or trust to aid in the
distribution of your assets in the event of your demise. You have
adequate insurance coverage to
protect your loved ones and your families financial goals.
These are just some brief thoughts concerning what it means to be
financially secure. The definition is as unique as each person. For an in
depth plan, seek out a financial planning professional who can help you
analyze you situation and seek to eduacte yourself. Read everything you
can get your hands on.
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