5 Common Traits of Financially Secure Individuals

Updated: June 10, 2021

It’s a good feeling to be financially secure. That is to be in a place where you’re not worried about money because you have stable sources of income and you’re optimistic about reaching your goals in life.

In my career as a financial planner, I’ve met a lot of financially secure individuals from various walks of life. And I’ve interestingly noticed a few things that are common among them.

Today, I’m sharing with you the five traits that I’ve observed from people who are doing financially well. How many of these qualities do you have?

1. They spend less than what they earn.

It’s a no-brainer to expect that they live within their means. Being a saver is, after all, necessary to building wealth.

What’s interesting though is that not all of them are meticulous at monitoring their spending. There are a few who don’t even follow a budget and simply make sure that they don’t spend more than a certain amount every month.

For instance, one guy restricts himself from spending more than P500 every day. For him, this spending strategy works because he claims that there’s always some money left in his salary account at the end of the month, which he then transfers to his savings and investment fund.

2. They have a huge emergency fund.

Having an emergency fund is important, and they certainly know that.

At least six months’ worth of expenses is the recommended size for a buffer fund. But most of those I’ve met have at least a year’s worth of cash tucked away in a time deposit or low-risk fund.

3. They are boring investors.

Financially secure individuals tend to ignore hot stocks and trendy investments. They gravitate more towards boring ones such as blue-chip stocks and mutual funds.

They do get curious and would learn more about them. They’d try to understand why people are putting money in these popular investments.

But nonetheless, they don’t easily succumb to the fear of missing out and jump on the bandwagon.

4. They like working.

They are dedicated to advancing their career or growing their business. They like doing side hustles and finding ways to earn extra income.

I also noticed that they’re always skeptical when they hear about an income or investment opportunity for the first time. They believe that if it’s too good to be true, then it probably is.

In fact, they prefer pursuing creative projects that have the potential to turn into something profitable, rather than seeking fast and easy ways to make money or get-rich-quick schemes.

5. They have a growth mindset.

Lastly, they value productivity and self-improvement.

Most of them like to read, and they don’t mind going to seminars, enrolling in workshops, or taking short learning courses. They’re curious about things that are not necessarily related to their work, which can benefit them in ways they’d never expect.

For example, I’ve talked to a food entrepreneur who met his current business partners in a hobby photography class he enrolled in before.

At the end of the day, the dream is to eventually become financially free. And that’s why they continue to learn and build new skills because that’s how you prepare for tomorrow’s challenges.

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2 comments

  1. YES SIR, this article made me feel great. Truly, this was a “pat on the back” via the written word! I must also give thanks at this time for Beautiful Bride. We are very close to the five year mark in our marriage, she still often surprises me with something new I did not know she was capable of doing!

    Now, I have to admit I am still building a local emergency fund for easy access. I have written on this blog in the past about my distain for cash laying around earning nothing. Maybe this is a bad habit but un-invested cash in my ROTH IRA goes into a sweep fund where it earns a small amount of interest. Cash piles up from my option writing efforts and when I find a trade I like, I can earn far more than any bank will pay me. I have used that free cash as a local emergency fund for many years. I can move cash to my banking account and in two days, unless I call the brokerage firm to update my account, I can make a withdrawal at local Philippine ATMs.

    Actually, the biggest obstacle we ever faced was 1. ATMs down and or 2. when foreign cards were being blocked from use at the ATM. For that last reason, I will be keeping more hard cash “under the mattress” but only a minimal amount extra in local banks. Perhaps this is not the perfect plan but it has worked for us even through the pandemic.

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