If we define Financial Security, it means having enough resources to support yourself (if single) or your family's (if married) standard of living from today until in the foreseeable future.
 |
| "vault-business-bank-vault-bank" by ahobbit is licensed under CC0 |
This doesn't mean that you will not experience setbacks, but for the most part, you will be able to handle it without burying yourself into too much debt.
James Altucher, an entrepreneur, angel investor, and author of the book "Choose Yourself." Devised a simple test to know how financially secure a person is.
The Magic Number for Financial Security
Here's what your need to do:
- Ready your pen and paper
- List the individuals and their actions that can break you financially. For example, your boss fires you at work or your business client cuts its deal with you.
- You need to be able to list at least 20.
- 20 is the magic number but it is much better if you have more than that.
When I tested myself years ago, I didn't reach this number. It will only take 5 individuals to break my financial security armor.
I tested myself again as I wrote this article. Unfortunately, I still didn't reach it. But on the bright side, I've surpassed my previous one.
Takeaway
According to James, the way to avoid this is to diversify the things you are working on so no one person or customer or boss or client can make a decision that could make you rich or destroy you or fulfill your life’s dreams or crush them. (https://jamesaltucher.com/blog/10-reasons-why-you-have-to-quit-your-job-this-year/)
What's your number? Leave it in the comments below.
Quote
