It’s impossible to avoid them: There are always going to be rich people. You see them when you’re at a coffee shop working on your beat-up laptop—they’re the ones parking their BMWs in the street and running in for a $6 latte. You’re jogging in your raggedy running shoes, they’re pushing their kids in $700 strollers.
 
Is that the good life? Well, maybe for some. But for the rest of us, a little plain old financial security would be good enough. 

Why should you care?

Financial security? Okay, sounds kinda boring. Really, it is. But trust us: It’s important.

Having financial peace of mind lets you do what you want, without worrying. And if you play your cards right, you just might end up with something a whole lot better — financial independence. You’ll be able to buy that MiniCooper and not have to feel guilty about the take-out you just picked up for the third time this week.  

What You Need to Know

• Savings, debt, savings, debt: You have a choice. You can save. Invest those savings and they’ll grow to bring even better things. Or, you can take the debt road, living check-to-check and using debt to cover expenses and emergencies. But know that, like that double-black-diamond slope you shouldn’t have tried, once you get into debt, it’s hard to get out. 
• Avoiding financial life support: Insurance covers life’s little emergencies. Wreck your car or lose your laptop, and insurance comes to the rescue. But there are more subtle risks, too—like if you get injured and can’t go back to work. Financial security means taking care of those emergencies, too. Insurance isn’t an investment, but it gives you the peace of mind to work, save and invest.
• Retirement? We know it’s far off, but . . . Think Social Security will cover all your needs someday? Think again. Most financial advisors expect Social Security to cover only 20 to 40 percent of your needs in your gray days. So financial security—and especially that financial independence thing—means putting some away to cover the other 60 to 80 percent, and anything that might happen between now and that golden retirement. 

Now, Let’s Do It!

• Commit to take the savings path. It’s simple—why “owe” when you can “own”?  Saving money leads to owning, and owning leads to not worrying. Debt goes a full 180 the other way.
• Set some goals. Financial goals make things happen. 
• Fill the gaps. Learn more about insurance, sit with an adviser if you want. Figure out what you need, make it a goal if you can’t afford it now.
• Keep asking “What if”? Look at yourself in the financial mirror. Are you protected from financial emergencies? What if you lose your job? What if you break your leg and can’t play basketball for a living any more? What if the transmission falls out of your car tomorrow?