Achieving Financial Security

Posted by Matthew Maillet

Achieving financial security is something that involves smart decision-making. Regardless of your age, you are never too young to begin striving for long-term financial security. There are several decisions you make along the way that help (or hurt) your ability to protect your financial stability.

First, it is important to take a good look at the way you handle risk. This can be examined by looking at all aspects of your life. “Would you rather work for a rock-solid company with strong benefits” or a “smaller startup with a great stock options?” If you chose the latter, you clearly demonstrate a strong appetite for risk and uncertainty. Luckily for most college students, it is never too late to dust yourself off and start a new approach to your decision making.

Second, how do you manage your debt? If you find yourself with multiple credit cards spending money that is not yours, you may be starting bad habits for the future. Money owed to a creditor should be a top priority. Years down the road, putting off paying a credit card will only come back to haunt you. Unpaid credit card balances puts the credit issuer in control of your finances. This can be a recipe for disaster.

Third, it is vitally important that you protect your assets. While auto and home insurance policies may seem like an inconvenient expense today, poorly protecting your assets can seriously jeopardize your financial stability in the event of a disaster. This is also relevant if you chose to start a company: choosing a limited liability company makes it much more challenging for others to attack your personal assets.

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