This article first appeared on the AFCPE.org blog in December 2013.
The need for personal security seems to be hard-wired into humans, reinforced by eons of experience since early man first ventured from the trees to seek an existence in a hostile world. Modern man no longer worries about saber-toothed tigers or the availability of sufficient prey; the object of today’s fears are rooted in future employment status, global economic events, and government actions that can complicate or devastate comfort and security.
Ancient man prepared for the future by learning to preserve food, rationing supplies for use at a later date. Civilized man prepares for the unknown by storing up modern-day units of exchange in the form of currencies, savings accounts, stocks, and bonds. While our ancestors’ savings were subject to the perils of spoilage, physical theft, and pests, our own savings are subject to their modern day equivalents – chance, taxes, and inflation.
As it was then, so it is now – the path to financial security isn’t always easy or clear. That said, with guidance on what to save, how much to save, and when to save it, you’ll have the tools to start developing a stockpile of financial security for the future.