We have all heard of financial freedom, right? Financial freedom is the ability to be comfortable financially without restriction. Well, financial security goes along with financial freedom.
Here is what the financial gurus over at Quicken say about financial security:
“Financial security refers to the peace of mind you feel when you aren’t worried about your income being enough to cover your expenses. It also means that you have enough money saved to cover emergencies and your future financial goals. When you are financially secure, your stress levels goes down, leaving you free to focus on other issues.”
Financial freedom in its basic form is to be free of debt. At its more advanced levels, financial freedom is the ability to live life comfortably without having a regular pay check coming in. Financial freedom can change based on your financial situation.
Financial security expands on financial literacy and financial freedom. Literacy means that you simply understand financial talk. At its more advanced levels, financial literacy may also include one’s ability to navigate financial markets due to his or her ability to understand financial matters.
So do we want to be financially literate? Yes we do. We want to be able to understand the language so that we can effectively and efficiently navigate the financial terrain, which can be tough at times.
Do we want financial freedom? Yes we do. We want to be free of debt and have the ability to live comfortably without having a regular check coming in.
Do we want to have financial security? Yes we do. My next article will reveal some steps that we can take to obtain financial security.