Financial Security For Dummies

Chapter 1

Navigating the (Bumpy) Road to Financial Independence

IN THIS CHAPTER

Defining and reaching for financial security

Dealing with crises

Tapping opportunities during tough times

Achieving financial independence and feeling financially secure are admittedly subjective assessments. A nest egg of $200,000 may seem like a lot to some people but not to a high-income earner who is accustomed to spending $100,000+ annually.

Now, for many people the feeling of financial security isn’t simply a matter of how much money you have to your name. Numerous other factors may contribute to feeling secure financially, which I help you to understand.

In my work as a financial counselor and educator, I’ve also seen people for whom having a certain level of wealth to feel secure is a moving target. And those targets tend to keep getting bigger and bigger over time once a given lower targeted amount has been achieved.

In this overview chapter, I walk you through determining what financial security means to you, assessing where you are now, and helping you think through what you need to do to accomplish your goals. I also survey the landscape of crises, both personal and in the broader economy, ...