FINANCE

What is Financial Security?

LUKE Klapsis is a Financial Planner with Strategic Invest Blue. He finds it particularly rewarding working closely with clients to help them determine their goals and together, creating strategies so these goals can be achieved.

Currently building their first home and with a child due later in the year, financial security is top of mind for Luke and his wife.

Here, Luke offers his perspective on the importance of being financially secure.

What does financial security actually mean?

I’m not sure people ask themselves this question very often or even give much thought to it.

In my opinion, asking ten different people what financial security means to them would result in ten completely varying responses. This is because everyone has different values when it comes to money.

To help uncover someone’s values around money, a simple question can be asked….

What’s important about money to you?

The response I most commonly hear is that people want to have financial security so they can do the things they wish to do.

Financial security generally refers to that state of mind when you’re at peace with your finances. Essentially, this means being able to meet your expenses without having to generate an income.

Achieving financial security doesn’t necessarily mean having lots of money, it simply means having enough money to be able to do what you want to do.

Naturally, financial security is a life goal for many Australians. To achieve financial security, it means thinking about it and setting ourselves up for it.

How do you achieve financial security?

There are a variety of ways to achieve financial security. This could include money management skills, financial management tools, investment advice or financial advice/ planning.

Building good money habits

It’s important to start becoming accustomed to habits that will assist you in achieving financial security. Building good money habits may take time. Start small if you need to – it all helps.

For example, start by sticking to a simple budget or implementing a basic savings plan. Also, take a closer look at your spending habits. Try to focus on doing things within your means and reduce those unnecessary ‘extras’.

Paying off ‘Bad Debts’

Another way to achieve financial security is to pay off ‘bad debts’. This can include personal loans or credit card debts. Try to make this a priority. The sooner you pay down your debt, the sooner you can get on track to being financially secure.

Paying off these debts will also result in more money going into your pocket, rather than on interest on loans (money in the bank’s pocket).

Debts such as loans on your home or investment loans may be part of your long-term investment strategy and that’s where chatting to an expert can help.

Seeking Financial Advice

In my experience, people often feel overwhelmed about their finances and aren’t quite sure where to start. For many, achieving financial security may feel like a tall order. A financial expert can help you get started.

I can appreciate that putting all your trust in someone when it comes to money matters can be a daunting prospect, so it’s important to take the time to find the right fit for you. Consider asking a family member or friend for a referral. At Strategic Invest Blue, we love getting referrals from our existing clients because it’s a reflection of how they feel we’re doing.

Regular Catch Ups

Let’s say you have a financial adviser you like and trust. This is great.

We all know that one of the most constant things in life is change, and therefore I would suggest meeting regularly with your adviser to review your finances.

It’s important to stay informed and be reassured that you’re on track to achieve your goals and objectives.

You want to know you’re succeeding ‘on purpose’ and it’s not just the market or luck on your side. Having the peace of mind of knowing you’re on your way to achieving financial freedom is paramount.

Peace of Mind

‘Financial security’ represents different things to all of us, but I believe the essence of it lies in having peace of mind about your financial position.

And so, while our individual goals may differ, the way we get there is most likely to be the same – by smart planning, building good spending habits and investing wisely.

At Strategic Invest Blue, we’re dedicated to providing holistic advice to our clients - be it young families, empty nesters or retirees - so that they are financially secure and can live their best possible lives.

We welcome you to arrange a complimentary consultation to ascertain how we can be of assistance.

design your one of a kind future. it’s possible!

P (03) 6220 8330 E advice@strategicfp.com.au W www.strategicfp.com.au