Financial Security

Definition

Financial security refers to the state of having enough money or resources to meet one's needs and maintain a stable and comfortable lifestyle.

Analogy

Think of financial security as a sturdy lifeboat in the vast ocean of economic uncertainty. Just like a lifeboat keeps you safe and afloat during turbulent waters, financial security provides stability and peace of mind in times of financial challenges.

Related terms

Budgeting: The process of creating a plan for how to spend and save money based on income and expenses.

Emergency Fund: A savings account set aside specifically for unexpected expenses or emergencies.

Retirement Planning: The process of setting aside funds and making investments to ensure financial stability during retirement years.