01. Financial Independence vs Financial Security
Balanced FI Podcast
English - May 14, 2021 03:37 - 17 minutes - 15.7 MB - ★★★★★ - 2 ratingsInvesting Business Education Self-Improvement debt debt freedom debt payoff family finance financial freedom financial independence financial security frugal medically complex personal finance Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Welcome to the Balanced FI podcast, episode 1! Thank you so much for listening in!
Financial independence is having enough invested so that you don't need to work anymore - you can live ff the interest. That's an amazing achievement, don't get me wrong... but it's just not realistic for a lot of people. Financial security is much more attainable; financial security is "having enough money to fund your lifestyle, as well as work toward your financial goals."
Financial Security Steps
I created the Financial Security Steps to help guide others through the process, with smaller goals & concrete to-do lists. This is the process my own family is following during our debt-free journey.
The Financial Security Steps are:
Track expensesSave a mini emergency fund + begin retirement savingsSave for recurring expensesCalculate your net worthCreate a debt payoff planCreate a budgetPay off debtSave an emergency fund of 6 months' expensesIncrease retirement contributionsChoose your next financial goal
Resources:
Read the Balanced FI blog post Financial Independence vs Financial Security
Read the Balanced FI blog post The Financial Security Steps: Welcome!
Download the Balanced FI Financial Security Steps printable
Sources:
Yahoo Finance: What is Financial Security, and How Do You Get it?
Ramsey Solutions: What Are the Baby Steps?