Chapter 5. Strategies for reaching financial freedom and security in life
The earlier in life you establish financial strategies to guide you in making informed decisions, the easier it will be for you to reach the financial freedom and security. Depending on your personal definition of financial freedom and security, you will frame what money means to you and make decisions accordingly.
In 2015, The Consumer Financial Protection Bureau (CFPB; www.consumerfinance.gov) conducted a survey research, summarizing: "Financial well-being can be defined as a state of being wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow enjoyment of life."
The CFPB demonstrates the four elements of financial well-being
- Control over your day-to-day, month-to-month finances
- Capacity to absorb a financial shock
- Financial freedom to make choices to enjoy life
- On track to meet your financial goals
How to
Here are a few strategies to guide you as you explore on your own in reaching for present and future financial security and freedom:
Practice
Now that you have a few strategies to help you reach financial security and freedom, think of paying it forward and discuss your experience with a friend or a family member.
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The Penn State Sokolov-Miller Family Financial and Life Skills Center hopes you have enjoyed this module in the MoneyCounts: A Penn State Financial Literacy Series. Please tell us how we can serve you better, leave us a feedback, ask a question, or request additional information at: finlit@psu.edu