Well, every one of us wants security. It’s either financially, physically or even spiritually. We seek ways on how we could make ourselves secure which includes our families. Some of us will put themselves at the edge of a knife just get what they wanted. Some of us will do crazy things including illegal just to find security and some of us do it through hard work and passion. Thus, for sure it’s part on the nature of a person to find security for him/herself. And there could only be one thing that is so certain in the future and that is uncertainty. Maybe today, you have a stable job, a good house and established a nice home with luxurious appliances and expensive cars, and then a fortuitous event happened, a great storm came onto your place. It washed away all that you have and the only thing that you have is your family. What will you do? Will you be able recover from it? Or will you lose hope and let your dreams also be washed away?
Source: https://www.caba.org.uk/help-and-guides/blog/guest-blog-achieving-financial-security-part-2-ayoob-rawat
The reason why I’m writing this one is that I want all of us to be aware that tomorrow is uncertain. I’m not a financial expert but I will share to you what I had learn and read through various books. Now let’s go on the financial perspective of uncertainty. Again, I’m not a financial expert, me, myself is still learning how to have a financial security and still figuring it out. And I want to help every one of us to have a financial freedom through the things that I learned. Now the question is what’s your biggest fear in life? How about financially?
Source: http://bloody-disgusting.com/exclusives/3313900/worst-fears-cast-crew-run-like-hell-exclusive/
Now let me share to you the America’s Top 5 Personal Financial Fears
- Rising cost of living. When asked about their financial fears about two-thirds of the respondents said they were “very worried” about inflation; another 30 percent said that they were “somewhat worried.” A majority said they were concerned their salaries won’t keep up with the rising food, gasoline, health care and other costs. More than a third admitted that they worried because their housing costs consume at least half their household income.
- The economic downturn and job security. Nearly ninety percent are worried about recession, and almost forty percent were concerned about job layoffs. Nearly two-thirds worried about stock market declines.
- Consumer debt. Over sixty percent of respondents who carry credit card debt from month to month worried that they have too much. A significant percentage of respondents were also troubled by the amount of student loan debt, medical debt, home equity debt, and lines of credit they carry.
- The housing crisis. More than half were worried about falling home prices and the loss of equity in their homes. About one-quarter of home-owners polled were somewhat or very worried they could face fore-closure. Another forty-five percent worried that rising property taxes could force them from their homes. Half expressed concern because their homes require basic maintenance or repairs they can’t afford.
- Savings. Nearly sixty percent worried because they have nothing saved for their retirement and can’t afford to save. Another one-third were worried they have nothing saved for future college experiences.
Source: http://finance.com/expert/article/moneyhappy/95501
Now I believe that all those fear just don’t happened in United States but around the world although in different forms because we have different cultures, policies and laws. The question is, are you prepared enough when you’re encountering fear like these? Do you have what it takes to survive? Then if not, don’t worry, it’s not too late. You still have a lot of time to build your life. And when we’re encountering fears like these we just need to have common sense. As the house of Mr. Warren and Pam Adams, a couple whose house withstood during the typhoon Ike in 2008 in a real state at Texas Gulf Coast and the houses around it already pulverized.
Source: http://www.coreytrevathan.com/different-kind-foundation/
Source: http://theexaminer.com/features/commentary/i-wish-you-enough%E2%80%A6
And what’s the common sense? Prepare in advance! Mr. Ron Blue, CPA said, “When you want to build something you want to keep, common sense dictates you build it according to your plan and with materials that will last.” Mr. and Mrs. Adams can’t control the hurricane however they anticipated the disaster it’s because they have the common sense and that is to prepare in advance. And now you’re might asking how to prepare in advance? Well, that’s a good question! So here it is, let me share to you what I learned from the book “Surviving Financial Meltdown; Confident Decisions in an Uncertain World” by Ron Blue, CPA and Jeremy White, CPA. Yes, you’re right they last names are colors and honestly they gave colors to my mindset and in my life. So let’s go back, how we should prepare? Let me share to you the book’s Four Principle of Financial Success.
Think Long Term With Goals And Investing. The longer your perspective, the better financial decisions you’ll make. Set goals in writing for the future. Invest for the long term and worry less about short-term ups and downs in your 401(k) or investment portfolio.
Spend Less Than You Earn. To accomplish this, you need to know what you’re earning and what you’re spending. Make a spending plan (or, if we dare use that loathed term, a budget). Monitor how you’re doing. Develop the self-control to avoid over-spending. If you consistently spend less than you earn over a long period of time, you will do well financially.
Maintain Emergency Savings. A reserve set aside will help you ride out the surprises life throws at you. You must spend less than you earn to build savings. Savings will then help you avoid debt. These principles work together.
Minimize The Use Of Debt. It may allow you to do more or have more now, but debt will reduce your ability to have more in the future. Financial problems are magnified with debt.
According to them, these four financial principles are so simple that they may easily be overlooked, yet they stood the test of time. And for me, yes, they do. I’m still practicing these principles, living alone in not an easy thing so it needs for me to develop these principles. The best to apply these four steps is before financial storms come. I hope friends that these will help as they do to me. I’ll be sharing to you next time some of my learning through books. So let’s practice these and we’ll be prepared to face the uncertainty of tomorrow. God bless everyone!
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