20/365- "It does not boast, it is not proud..."
There was a time when people believed that if they had land, they were financially secure. They could farm the land, grow food on it, be landlords or find other uses for it. But poor weather, crop diseases, and economic downturns quite often left property owners unable to even pay taxes.

It was also earlier thought that if you had a good job with a large company or the government you had financial security, from the steady income that these jobs offered. But economic downturns, job cuts and competing business led to this becoming just another myth. Governments have tried to create safety nets like Social Security, that does give a modicum of financial freedom, but even these are rarely more than at a subsistence level. What then does a person need to do to have financial security?

The best strategy to achieve any form of freedom from financial worries is to minimize risk and always ensure that you have a number of income avenues. You achieve some financial security if you are able to ensure that your sources of avenue are reasonably safe and give you reasonable returns. This process can be assisted if you are constantly weighing the three important aspects that make for financial security. These are:

• Assets
• Income
• Expenditure

Assets form the base for your financial strength, and must be as far as possible without any encumbrances. A mortgaged home will not fall completely within this, though valuables and jewelry will. Money in the form of investments is also subjected to risk and does not give complete protection. The degree of risk will however vary from Certificates of Deposits, mutual funds, share and stocks, commodities or any other avenue.

Income has to be steady and something that you can rely on, if you have to have the required security. This is rarely completely under your control and there always external factors that can make a difference, like job losses, reduction in interest rates, stock market variations and a general economic downturn.

Expenditure is the one area that can always be under your control and play a vital role in ensuring financial security. Learn to live minimally and you will be far more secure than all your friends and acquaintances and probably much happier as well. Save as much as you can, and do this systematically, by taking advantage of every possible avenue, so that your future is looked after. The ultimate aim, of any financial security strategy that you follow, is to ensure that you have no worries for living comfortably, even when your career is over.