Want to find financial security in an uncertain world for yourself and your family? Do you want the confidence that you’ll have enough money tomorrow and in the years ahead? Follow these practical steps to build lasting financial security.
by Jan Roland
“It’s easy to endure adversity if it happens to someone else.” — Mark Twain
Most people yearn for financial stability, yet many rely on things that can quickly lose value or fail to protect them in a crisis. A large 401(k), rental real estate, or precious metals can help, but they aren’t foolproof—market crashes and economic disruptions can reduce their value. The good news is you can take concrete actions to protect yourself and your dependents. Below are seven proven steps to increase your financial security.
1. Get out of debt
Eliminating debt is a foundational step toward financial security. Debt creates vulnerability: creditors can demand payment when you’re least able to manage it, which can leave you unable to cover basic needs. Prioritize paying off high-interest debt first, create a realistic repayment plan, and avoid accumulating new consumer debt. Reducing liabilities increases flexibility and peace of mind.
2. Start an emergency fund
Build an emergency fund to cover unexpected expenses like car repairs, sudden medical bills, or a broken appliance. Even a modest cushion reduces stress and prevents you from relying on credit when surprises occur. Aim to save a few months’ worth of essential living expenses, then gradually increase that amount as circumstances allow. Keep this fund in a safe, liquid account for easy access.
3. Get insured
Insurance protects you from catastrophic expenses that could otherwise wipe out your savings. Health insurance, auto insurance, homeowners or renters insurance, and appropriate life and disability coverage are essential pieces of a secure financial plan. Review your policies regularly to ensure you have adequate coverage for your current needs and avoid gaps that could leave you exposed.
4. Save for periods without income
Plan and save for times when you won’t have a regular paycheck—usually retirement, but also potential long-term disability or periods spent out of the workforce, such as caring for a family member. Contribute to retirement accounts consistently, take advantage of employer matches where available, and consider tax-advantaged accounts. The sooner you start and the more consistently you contribute, the more secure your future income will be.
5. Learn skills that save or earn money
Develop practical skills that either reduce expenses or create additional income. Gardening, basic home and auto repairs, cooking from scratch, and handyman skills can cut costs. Marketable skills—freelancing, tutoring, coding, or trades—can provide supplemental income during tight times or transitions. Investing in transferable skills increases resilience and financial options.
6. Build a strong local support network
Financial security isn’t only about money. A reliable network of family, close friends, and neighbors can provide practical help and emotional support during crises. Your community can assist with childcare, temporary housing, meals, or referrals to trusted service providers. Strengthening real-life, reciprocal relationships adds a layer of security you can’t buy.
7. Live within your means
Consistently spending less than you earn is the simplest and most effective path to financial stability. If you continuously chase a lifestyle beyond your income, long-term security will remain out of reach. Budget consciously, prioritize needs over wants, and make saving and debt repayment habitual. Living within your means reduces financial stress and builds a foundation for future goals.
These seven steps—getting out of debt, building an emergency fund, obtaining appropriate insurance, saving for periods without income, learning money-saving and money-making skills, nurturing a dependable social network, and living within your means—create a balanced, resilient approach to financial security. Start with the most urgent areas for your situation and take steady, consistent action. How are you progressing on your own journey to financial security?
Reviewed May 2025