Financial security. It’s something that we’re all striving towards (especially in the PF community). But what does that really mean to you? When will you truly feel financially secure? Are you there already?
Financial Security Means Something Different to Everyone
In my opinion there’s no one way to feel financially secure. Well, maybe we would all feel secure if we won millions of dollars in the lottery but A: that’s never going to happen and B: I’m sure there’s a whole host of insecurity that could come along with that and C: apparently 90% of lottery winners go through their winnings in less than 5 years. But even so, I think everyone has a different idea of what would make them feel financially secure.
What Financial Security Means to My Husband
My husband and I have had several conversations about financial security lately and, to him, being financially secure means “always being able to afford the tool for the job.” He meant this both literally and figuratively. Literally, we bought a snowblower during a recent snowstorm after debating all winter whether or not we wanted one because we were tired of spending hours shoveling our driveway and sidewalks (and tired of being sore for days afterwards). More figuratively, if there’s a better or more efficient tool to get a job done (whether it be snow blowing, woodworking, or fixing something in the house), he doesn’t want money to stop him. To him, that knowledge is what makes him feel financially secure .
What Financial Security Means to Me
To me, financial security means being able to take care of problems that arise. I worry. I’m always trying to plan for things that might happen. So to me, financial security means being able to take care of those problems. For example, last year I got a flat tire and ended up needing to replace two tires on my vehicle. For some people, this might cause serious financial strain but I was able to easily replace the tires from my savings. But the other part of this for me is preparing for problems that may arise that are out of the range of my emergency fund. And that’s where building credit comes in.
Why Is My Financial Security Also Tied to My Credit?
Once upon a time, I was (unexpectedly) single and trying to move into an apartment on my own. When I tried to get the utilities turned on they told me no. Just, no. I ended up having to enlist the help of my parents to turn on my utilities. I felt very vulnerable that I was an “adult” but could not take care of my own needs. Like I’ve said before, credit is necessary for more than just buying stuff you can’t afford. So to me, being financially secure means always having the means to take care of myself, whether that be using money from my emergency fund to pay for new tires, or having enough credit to turn on utilities.
What does financial security mean to you? Do you feel financially secure? If not, what are you doing to get there?