How Do You Spell S.E.C.U.R.I.T.Y.?
My points from those posts was that more and more people are looking to the state or other people for their security. Well, not me. To show you how I define security, I’m going to spell out SECURITY in the following way:
S – Savings – Savings are the cornerstone of all financial success and progress. It is also the cornerstone of security. By ramping up an aggressive savings plan, you can quickly begin to move towards a nice picture of wealth for you and your family. Unfortunately, savings is discouraged in America (i.e. you’re taxed on interest made on savings, but you can deduct interest paid on debt). An appropriate policy shift in our country would be to incentive savings by not taxing the interest gained on it. Savings becomes capital which can be invested in business opportunities or it is simply a reserve that can be tapped in the case of a job loss or other unexpected emergency.
E – Emergency Supplies – This goes along with savings, but I’ve really bought into the idea of accumulating emergency supplies and when it comes to security, doesn’t it make perfect sense? We all agree we should have an emergency fund of cash, yet most people don’t even consider storing up supplies such as food, water, and other consumer goods. Throughout history, people always stored items for a rainy day until recent decades. This is dangerous and you can protect your family much greater and provide a much higher level of security if you have a stockpile of goods for emergencies. Read more on this by checking out the Alpha Strategy.
C – Career – Obviously your job and your career are important for security. Most people, however, view it as job security. I view it much differently, because frankly, no job is completely secure. Your responsibility is to grow in your career, not get complacent and hope nobody fires you. Improve your skill set (which we’ll talk about later) and grow your network. The resources you gain during your career will help you move forward and upward. And, make you more secure.
U – Understanding & Knowledge – I believe you can become more secure by increasing your understanding and knowledge of many areas of life. For example, understanding the economy better. Or, understanding the stock market. Or, maybe it’s the industry you work in. Or, perhaps, it’s industries that you don’t work in. Gaining additional knowledge of the world you live in will help you survive and thrive in it. How might you go about doing this? Read books and read blogs like this one!
R – Rate of Return – One of my favorite subjects. Your rate of return. By positioning yourself over time to earn money on your money, you greatly increase your security. There is no better method of generating wealth than the slow, compounding nature of earning a return on your savings or investments. A great way to consider moving towards a nice rate of return is to invest in a DRIP Plan. Furthermore, you can work to increase your rate of return over time by learning the stock market and understanding how stocks move on a day-to-day, month-to-month basis.
I – Income Streams – While everyone agrees adding diversification to your investments is a smart, secure thing to do, most people ignore the idea of income diversification. I think it’s extremely important. As many people can identify with today, when you lose your main income, having additional income streams would be very beneficial and help add stability and security. When times are good, the multiple income streams simply boost your income allowing you to save and invest more. Building income streams is one of the main focuses of this blog.
T – Teaching Yourself New Skills – Going along with the understanding and knowledge piece above, teaching yourself new skills is extremely important. I’m referring to specific skills here. These skills may help you with your career and/or income, or they may just help you in life generally speaking. For example, you can teach yourself programming or web development which might help you move up in your company or help you start an online income stream. Additionally, you might teach yourself how to repair bikes which would help you save money or just be able to do more things your self (self-reliance is a form of security). With the insane amount of resources available on the internet, you can learn just about whatever skill you desire.
Y – Your Health – Of course, none of the above matter if you lose your health, so you must mention health when it comes to security. Thankfully, with national health care, you’ll never have to worry about health care again (sarcasm). Ok, being serious, it’s important to maintain your health. The best approach is a regular lifestyle of exercising and eating decent. You don’t have to kill yourself or starve yourself. Instead, just find a balance.
How do you spell S.E.C.U.R.I.T.Y.?? What would you add?