Description

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:

1. Track expenses
2. Save a mini emergency fund + begin retirement savings
3. Save for recurring expenses
4. Calculate your net worth
5. Create a debt payoff plan
6. Create a budget
7. Pay off debt
8. Save an emergency fund of 6 months' expenses
9. Increase retirement contributions
10. Choose 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?