Personal Finance

So today, I wanted to talk about Personal Finance. I read an article the other day on how people define financial well-being. Most people said that its not about security and freedom - both now and in the future. And those who reported higher levels of financial well being had these habits in common:

They live within their means. First, these consumers feel they have control over their day-to-day and month-to-month finances. They are able to cover their expenses and pay their bills on time, and generally they do not worry about having enough money to get by. This is not just about having money, they told us, it is about managing it better. 

They have a financial cushion. Second, these consumers feel they have the capacity to absorb a financial shock. Whether they get in a car accident or are temporarily laid off from a job, they have a safety net such as savings, insurance, or family to avoid severe financial turmoil. 

They have a plan. Consumers with a higher sense of financial well-being see themselves as on track to meet their financial goals. Whether they have a formal financial plan or not, they are actively working toward goals. Those goals may include saving to buy a car or home, paying off student loans, putting away money for retirement, or just having enough for emergencies. 

They have a sense of financial freedom. Finally, these consumers feel they have the financial freedom to make the choices that allow them to enjoy life, whatever that means to them. Whether that is taking a family vacation, going out to eat, or working less to spend more time with family, these consumers have the financial flexibility to do what they value and what makes them happy.

The main question we face is: How can we better help people achieve these goals and attain financial security and freedom? Right now, research shows that almost half of Americans describe themselves as struggling to pay their bills. 

So my question to you today is, what are you doing to secure your financial future?