Financial security describes a state that you can achieve through saving. You are in financial security when you have enough money to master the hurdles of everyday life. You are financially secured when you are able to respond solidly to small disasters, would cope with a job change, and be able to confidently move to another city or repair your car after you have had an accident if the insurance has not yet paid for it. Financial security should be your support in bad times because when you have nothing, bad things often happen.
Why financial security is important
There are people who are not financially secure and will get into trouble if a small disaster happens in their life. The constant lack of money, the constant fear of getting into need, and the eternal feeling of having no money can hit the psyche. Always hoping that nothing will happen, always dreaming of what you cannot afford, and always living to the limit is no fun.
Financial security: Step towards happiness
The internal pressure will be felt, it can be uncomfortable. That is why feeling financially secured is a step towards happiness in life, because you can focus on the good things in life when you know you are prepared. Your focus can be put on other projects. The disasters can come because you know you can make it. Your inner calm will be reflected in your mind. You’ll be more relaxed when things don’t go well. You will have no more debts. You can pay your bills on time without bankrupting you.
Some say that to be financially secured, you should have around six months’ salary on the high edge. That’s a good rule of thumb. On the other hand, you can of course also invest your money differently, be it in real estate, bonds, or personal loans. Other people use some of their savings in online gambling sites like Dominoqq with the hope to earn extra money. The world is full of possibilities. However, if the risk is too high for you then just feel free to leave it on your account.