Liz Weston-8 steps to financial security
Nothing proves that quite like research on millionaires by wealth management firm UBS.
The majority - two-thirds of those polled - said the whole point of building wealth was achieving financial security, where a single setback isn't likely to plunge them into the ranks of the not-rich.
Half of those worth $1 million to $5 million believed that one bad break, such as a market crash or a job loss, would have a major impact on their lifestyle.
Credit card debt is expensive.
If you can't see how to pay off your high-rate debt within five years, consult a credit counselor and a bankruptcy attorney about your options.
Keep your must-have expenses — shelter, utilities, food, transportation, insurance, minimum loan payments — to 50 percent or less of your after-tax income.
Take full advantage of any company match you're offered in a workplace retirement plan — and do so even if you're paying off toxic debt, because matches are free money.
Health insurance can prevent bankrupting medical bills.
Once you've paid off bad debt and gotten on track with retirement, focus on boosting your emergency fund.
If Social Security isn't enough to cover your basics, consider buying an immediate annuity, where you give an insurance company a chunk of money in return for a lifetime stream of monthly checks.