- Okay, what's the secret to financial security?
Well, the secret is there is no secret.
The problem is that in this sophisticated age,
the secret to financial security
seems a little too simple, a little too straightforward.
There are two parts to the secret.
First, spend less than you make.
Adopt a prudent lifestyle when it comes to your house,
your car, your clothes, and your entertainment.
Make sure you make purchasing decisions
based on what you can afford,
which is not necessarily what you want.
Our spending habits can lock us into a lifestyle
that we can't afford.
This reduces our financial flexibility.
Part of creating sustainable spending habits
is to have a budget.
You have to plan your spending
and periodically measure yourself against that plan
to ensure that you're achieving your financial goals.
So the first part of the secret: spend less than you make.
The second part is to be very suspicious
of complex or clever investment schemes.
If an investment opportunity or money making opportunity
seems too good to be true,
it probably is too good to be true.
Stay away from complex schemes.
Simple savings plans are usually the best.