International Baccalaureate (IB) 2025 – 400 Free Practice Questions to Pass the Exam

Financial security is best achieved when your money starts generating income. This means that rather than simply holding cash or paying off debts, you are placing your money in investments or assets that have the potential to yield returns over time. When your money works for you by generating additional income, whether through dividends, interest, rental income, or capital gains, you can build wealth and provide a more stable financial future.

Saving a large amount of cash can provide a sense of security in the short term, but it does not necessarily grow your wealth. Cash savings often lose value over time due to inflation. Investing in stocks exclusively might seem like a good strategy, but it is essential to diversify investments to manage risk effectively. Paying off all debts can improve financial stability, but without generating income from your assets, achieving true financial security remains challenging. Thus, generating income from money invested effectively is a more comprehensive approach to achieving long-term financial security.