How to be Financially Secure

Read More

lockHow to be Financially Secure

Achieving financial security is an aim that most people aspire to. Worrying about money causes stress, loss of enjoyment of life, and is often linked to relationship problems. It goes without saying then, that being financially secure can make you happier. The definition of financial security is a very personal thing and depends to some degree on what you consider to be a minimum standard of living. At the very least, everyone needs a place to live, the basic necessities of life such as food, clothing and heating, and sufficient resources to be able to enjoy life. The basic elements of financial security are:

  • Being debt free. This includes owning a home without debt as well as having no credit card or store card debt.
  • Having enough money in reserve to cover unexpected expenses or unexpected loss of income. A basic rule of thumb is to have the equivalent of at least three months living expenses in reserve
  • Having a secure income that is sufficient to maintain your desired standard of living. Securing your income requires keeping your skills up to date, maintaining good health and a good relationship with your partner or finding ways to generate passive income
  • Having sufficient assets and investments to provide for your future needs. This includes your long term goals as well as your retirement needs.
  • Being protected from financial risk through having adequate insurance cover, a diversified investment portfolio, and a means of protecting your assets in the event of business or relationship failure

Achieving financial security is difficult for those on low incomes. However, there are many instances where those on good incomes fail to put in place the basic elements of financial security and suffer badly when they have a sudden in change in their circumstances.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.