A lot of people are misunderstanding the difference between financial security and financial confidence. Most of them think that financial security is what they need to survive economically when the market starts to head toward recession.
But what is the difference?
“Financial security vs financial confidence”, here’s what you need to know!
Financial security vs Financial confidence
Related: what is the difference between financial planners and stockbrokers?
What is financial security?
Financial security refers to the state of having enough financial resources to meet one’s basic needs and live comfortably without being overwhelmed by debt or financial obligations. It is a sense of stability and certainty that one’s financial situation is secure, with a comfortable level of savings, investments, and insurance in place.
What is financial confidence?
On the other hand, financial confidence refers to the belief in one’s ability to manage and make smart financial decisions. It is the feeling of self-assurance that one can handle financial challenges and achieve their financial goals. Financial confidence comes from having the knowledge and skills necessary to make informed financial decisions, as well as a positive attitude toward money.
Take Away
Financial security is about having enough financial resources to meet one’s needs, while financial confidence is about having the knowledge and skills necessary to make smart financial decisions and the belief in one’s ability to manage money effectively.
