3 steps for Financial Security | Financial Planning

                         MONEY MINDED

  3 FINANCIAL SECURITY STEPS | FINANCIAL PLANNING 

Introduction: 

                       Welcome friends!. In this post, you are gain a great knowledge about  financial security, which is the base of financial planning. 

                     Financial security will definitely improve your financial status. Read all the 3 simple financial security steps and try to follow it. 

Financial security:

                  * Financial Security is the basic step in financial planning. 

                         * Financial security will be useful to avoid the fears in financial sufferings like insufficient money.

                         * Most of us are suffer to improve financial status, because we find difficult to learn about Financial Planning.

                         * I have explained about financial security in three simple steps for your better understanding.

3 Steps for financial security:

                         The 3 steps for financial security is, 

                              * Savings or Emergency Fund

                              * Get rid of Bad Debt

                               * Insurance

Step-1- Savings or Emergency Fund:

                          * Savings are the first and primary step in financial security planning

                          * Savings means to save a part of your monthly income.  Save at least 15 - 25% of your monthly income

                          * Your monthly saving amount will be useful to save you in emergency situations like need of money, job loss etc.. .

                           * You can run through savings amount, until you find a job or any another income source.  

                                      

Step-2- Get out of Bad Debt:

                           * The second step in financial security planning is getting out of Bad Debts.

                           * Debt or loans means the amount which is to be payed back to banks, financial institutions or to any persons etc... .

                            * Debt or Loans are classified into two types based on their interest percentage. The two types of debts are,

                   GOOD DEBTS - Debts or Loans with low interest rate

                     BAD DEBTS - Debts or Loans with high interest rate 

                              * As Bad debts interest rates are higher than good debts interest rate, first give priority  to pay the bad debts.             

                              * If you have any debt or an idea to get debt, please get the good debts. 

Step-3- Insurance:

                       * The Third step for financial security planning is Insurance.

                       * Insurance means protecting something from any financial losses. Insurance gives back the amount, which we loss in any accidents.

                       * Insurance procedure is, you have to choose a insurance plan and pay some amount monthly. If any accidents occurs the insurance company will give the amount based on your insurance plan.

Conclusion:

                    Now you have known all the 3 financial security steps, try to implement in your life. Read all the other post of "MONEY MINDED".

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