Do you want to achieve financial security and success?
Change is the only thing that is constant in our life. But the rate of change is double than before in all aspects of our life. Be it telecommunication, education, transport, politics, or medicine, everything is changing briskly. If you don’t move at the same pace, then you can’t expect to grow or develop in the future. Now the main question is, do you want to have financial security and stability in the next 3 or 4 or 5 years? Do you want to eat good foods, drink the best wines, and live in a beautiful home in the months and years ahead? If so, then you should take your work seriously and make yourself competent at whatever you do.
Tips to achieve financial security
How can you make yourself competent? How can you make sure you earn enough money to survive 5 years from today? Well, here are a few tips you can use to do that.
1. Upgrade your knowledge
Knowledge is doubling every 5 years. This implies that 20% of your knowledge is gradually becoming obsolete every year. In 2 years, nearly 40% of your knowledge will become outdated. And in the next 5 years, almost 100% of your knowledge may become redundant. What will you do then? You can’t expect that you’ll work in the same company after 5 years also. When you’ll try to move from job to job, your potential employers will test your knowledge. If your knowledge is not up-to-date, then the chances of grabbing a good job with lucrative salary are low.
Ask yourself a few questions like:
- Am I doing something different from what I used to do a few years back?
- What part of my knowledge has already become outdated?
- What am I going to do in the next 5 years?
- Which part of my skillset has become obsolete?
- How can I continue my self-development?
- What kind of knowledge should I have to ensure financial security in the future?
Being a knowledgable person is not enough nowadays. You have to upgrade your knowledge and implement it in your work to achieve satisfying results. Your earning potentiality completely depends on how you implement your knowledge to satisfy your customers. After all, if your customers aren’t happy, then you can’t expect growth at your work.
2. Learn new skills
To earn more, you need to learn new skills. The salary you’re getting now is based on your current level of knowledge and skill. So you have already maxed out your knowledge and skill. Now to get a salary hike or a promotion in the next year, you have to upgrade your skill. You have to learn a new skill and apply it to your work.
Previously, a technical analyst had to know only a few specific programs. But now, he also needs to know Python and use it successfully.
3. Be excellent at what you do
Gone are the days when people could expect to rise and shine by being excellent at what they do. Now they have to be competent just to keep their jobs. The competition is so stiff. The future has no place for average or poor performers. The future belongs to efficient and knowledgable people.
Employees often feel that they are underpaid at work. But it isn’t true. Companies pay almost double the salary of employees in terms of benefits, space, furniture, resources, etc. If they want to keep their job, they have to contribute something more than their salary in terms of value.
4. Create an emergency fund
I know that most people won’t include this point in the self-development part. But an emergency fund is indispensable when it comes to ensuring financial security in the future. An emergency fund helps you to pay off both unsecured and secured debts. It helps you to cover your family expenses when you’re laid off for several months. It also helps you to cover your sudden medical expenses. Without an emergency fund, you can’t expect to have financial security in the future.
Knowledge and skill can help to retain your job. An emergency fund can help you cover unforeseen expenses. And if you don’t have an emergency fund, unforeseen expenses can eat up your entire savings.
Set aside a certain part of your income for building an emergency fund. Initially, it would be difficult to set aside a specific amount for your emergency fund because you have to change your spending behaviour and reduce your expenses. That means you have to learn the art of budgeting, which is also a part of your self-development process.
Achieving financial security is possible
Achieving financial security through self-development is possible if you use the aforementioned tips. On one hand, you have to upgrade your knowledge and skill. On the other hand, you need to build your emergency fund to attain financial security irrespective of what happens.
Stacy B Miller is a writer, blogger, and a content marketing enthusiast. Her blog vents out her opinions on money and financial issues. Her articles have been published in various top-notch websites and she plans to write many more for her readers.