In this week's episode, we are discussing the differences between financial independence and financial security, plus an overview of the Financial Security Steps. Financial independence is a great goal, but it's out of reach & overwhelming for a lot of people. Financial security, guided by Balanced FI's Financial Security Steps, is more practical because it's broken down into achievable milestones.
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:
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
Yahoo Finance: What is Financial Security, and How Do You Get it?
Ramsey Solutions: What Are the Baby Steps?