Am I financially secure?
11 February 19  /  Insights

The concept of feeling safe and secure is in human nature. We don’t tend to seek out situations that cause us to feel uneasy or could easily harm us in some way. This is because feeling secure is a basic physiological human need that contributes to our wellbeing.

Bruce Schneier, a psychologist who specialises in security, says that “Security is both a feeling and a reality. And they're not the same.

The reality of security is mathematical, based on the probability of different risks and the effectiveness of different countermeasures.”

He also says that “security is also a feeling, based not on probabilities and mathematical calculations, but on your psychological reactions to both risks and countermeasures.”  

And that’s the issue. You can create a reality of security and still not feel secure. Similarly, you can feel secure and yet not actually secure in your current position.

What happens if we put the word ‘financially’ in front of the word ‘secure’? How do we meet this need? Can you meet this need?

The reality of being financially secure is different for each person. Perhaps it means having a huge sum in the bank or a solid investment portfolio.

We feel there are a few general signs that you probably are financially secure:

  • You have little or no debt
  • You can cover your monthly expenses easily with your main income
  • You have more than one source of income and can afford to save and invest
  • You would not be too worried if a financial emergency came up
  • You are thoughtful, not paranoid, about your spending.

You can have all of the above and a good job with a good salary, be in great health, and have a lot of money saved up, yet still not feel financially secure with your money. We ask ourselves why this is.

Motivational speaker Steve Pavlina has based his theory regarding security and how we define our personal security by either internal or external factors. He points out that the above factors can be threatened, then we no longer feel secure.

Pavlina says that internal security comes from self-belief. The belief that you can adapt and react to risk and be okay.

So, what does this mean for you?

You need to define what it means for you to be financially secure. It is important to feel secure in yourself and the decisions you make, particularly when it comes to your finances.

We understand this is not an easy thing to do. That is why we work closely with our clients, delving deep to establish what makes them feel secure, but also how they would like to be spending their time and money.

Using special forecasting software, we can predict the outcomes of different scenarios, giving you the confidence and peace of mind to live your desired lifestyle. We aim to relieve any financial worries you may have, offering a sense of security.

Get in touch if you think you will benefit from our Lifestyle Financial Planning services on 01865 208000 or click here to request a callback.

Sources:
www.schneier.com/
www.stevepavlina.com/

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18 February 19  /  Insights