Realistically, it makes more sense for you to be financially conservative since it means that you are more cautious about the way you handle your finances and the way you invest your money. A financially conservative person will handle their budgeting the same in a good economy and in a bad economy. They may decrease the amount they spend when the economy is not doing as well. When you are financially conservative, you are careful with your money and you operate with a solid plan that you can follow. You work to minimize the risks. Basically, being financially conservative means that you are careful with your money. You carefully weigh your purchases and you avoid debt when you can. It means that you have a good plan and that you can execute it. Being financially conservative does not mean that you will not run into financial issues such as losing a job or an unexpected medical emergency. However, it does mean that you will have the tools to deal with those problems. This means you will have a solid emergency fund in place as well as the necessary insurance to cover those situations. Your financial plan will include long-term investing and savings goals, as well as a solid budget that you stick to every month. This makes it easier to manage your money. The steps sound simple, but it will take time and work to make it happen. Most financially conservative people have worked hard for years to get to where they are comfortable and can handle situations as they arise. Do not be discouraged if it takes you time to get to that point. Most financially conservative people have a set of rules they follow regarding purchases and whether or not to buy a new or used car. When you are set financially, you will often have more available income to spend on the things you want. You do not necessarily have to do without, but you may make sacrifices now to be better off later. It is important to realize that properly handling your finances is meant to free you to enjoy your life. When your choices are limiting your ability to enjoy your life, even though you are debt free and have enough saved for the future, it is time to look at the decisions and budget you have in place. Your goal should be to save enough that it is affecting your budget, but not so much that you cannot do anything. Using a financial advisor should make investing easier to understand, and they should be able to explain the risks associated with each type of investment. Understanding the risks can help eliminate any fear you may have and allow you to invest to build wealth. If you feel like you could be more financially conservative than you currently are, setting up a budget and solid goals is a good place to start.
