4 Moves That Can Make or Break Your Financial Security, According to Experts
Written by
Laura Bogart
Edited by
Kristen Mae
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If you were asked to imagine your personal finances as a house (go with it, like it’s a meditation exercise), you’d probably want to picture a sturdy foundation. An inviting porch, where influential people, like bank representatives who offer credit, will want to sit for a while. Walkways that make it easy for your friends and family to find side rooms you’ve reserved for them. Certainly, you wouldn’t want it to be a house of cards, capable of being brought down by a single financial shock.
That’s the goal of financial security: building something sturdy and lasting. And while it may seem complicated, it’s easier than you imagine — especially when you strengthen your financial structure by following these four tried-and-true, expert-approved approaches.
1. Create an Emergency Fund
There’s not a lot of love between Dave Ramsey and Tori Dunlap — these financial experts disagree about everything from the right time to start investing to how you should vote. So, when they align on a piece of advice, you know it’s worth considering. Creating an emergency fund is the very first step in Ramsey’s famous “baby steps” toward financial stability.
Writing for Ramsey Solutions, Rachel Cruze spells out the need for an emergency fund, and how it differs from your existing budget, quite clearly: “A budget helps you plan for regular expenses each month — like groceries, gas, insurance, etc. But what about those big expenses you can’t plan for? With an emergency fund, you’re ready for just about anything that may come your way.”
Likewise, Dunlap suggests making an emergency fund your number one priority, going even further in her advice to suggest that you set yours up in a high-yield savings account. Typically, Dunlap has recommended saving between three to six months of essential expenses — however, with the state of inflation and overall economic volatility, she now recommends bulking that amount up to nine months.
2. Learn How To Invest
Investing may seem like the domain of people who have a more comprehensive financial education than you do, but it doesn’t have to be. Not when experts like Vivian Tu, aka YourRichBFF, are here to demystify the process of learning to invest. Calling herself “your favorite Wall Street girlie,” Tu’s years of expertise in the market have helped her hone a relatively simple way of getting everyday people involved in investing.
As reported by GOBankingRates, Tu recommends searching for the best robo-advisors in 2025 — as in, digital platforms that can help you understand your needs and risk tolerance while offering suggestions on potential investments. And you can always run the online advisor’s advice by a flesh-and-blood financial planner, making tweaks as needed.
3. Find the Right Life Insurance Policy
Life insurance offers financial security in a pretty obvious way: It ensures that your family members will be able to maintain their standard of living if you were to pass away. With a robust policy, you can cover outstanding debts, like mortgages, credit card balances and car loans, sparing your family from having to take on that financial hardship while freshly grieving for you.
However, experts like Suze Orman don’t want you to assume that the basic life insurance you get through your company is going to be enough to cover you. Far from it.
“Workplace life insurance pays out a very small death benefit that is typically equal to one or maybe two years of your salary. That is not nearly enough,” she wrote. “To fully protect your loved ones and make sure they never have financial hardship, my advice is to consider a term life insurance policy that is at least 20 times (25 times is even better) the annual income that you need to be replaced.”
While Orman points out that whole life plans are typically more expensive than term policies, there are certain times when purchasing a whole life plan might make more sense for you and your family. As U.S. News & World Report explains: “Unlike term life insurance, whole life has a cash value that builds over time on a tax-deferred basis. The cash value can be used as a savings vehicle for retirement, and you can borrow against or withdraw it.” Just be aware that any amount of the loan that isn’t repaid in full upon your death will be deducted from the death benefit.
4. Review Your Financial Plan With an Advisor
At the end of the day, the best advisor to help you build the frame of your financial house is the one who can offer personalized advice suited to your goals and your needs. Searching for a financial advisor you can trust — and working with them to create and continuously review your plan — is one of the best ways to ensure long-term financial security.
Looking to build a legacy? Check out our Life to Legacy guide for expert advice and smart moves you can make today.
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