As the name already suggests, financial security is a term used to refer to a situation in which a person or a business has enough money to take care of their present expenses and that of foreseeable future. Thus, the person is not worried about having insufficient fund and therefore has a peace of mind. This type of condition is very advantageous as it reduces your stress level and also makes it possible for you to pay attention to other issues. Being financially secure entails possibility of continued solvency, job or employment security and having predictable cash flow in the future.
Discussion on financial security applies to countries, adults of different age limits and children. Different factors determine the financial security of each group. Here we will pay more attention to children and adults.
For adults between the ages of 18 and 49 years, their financial security depends on that of their employment security. People in that age range who have job security or flourishing businesses with high growth potentials are financially stable. But for children, it is largely base on their parents’ or guardians’ job security as well as economic outlook of their countries.
To determine whether you are financially secure or stable, it is important that you take time to know your assets and liabilities. Of course, your assets should be greater than your liability. You should also be able to find out how comparable is your revenue and expenses. If you are not keeping track of the above, it will be difficult for you to know whether you are financially secured or not. Your budget will also show whether or not you are financially stable. You should be able to budget for future success meaning that you should have a budget that will take care of your present needs as well as your long-term goals.