Solid Financial Rules For Women
As a woman it’s important that you control what’s happening with your money. Whether you are married or single, a mother four or a mother of one, it’s a good idea to get money smart. This article outlines 5 things that you can do to become smarter with your money.
1. Actively save
It might seem more fun to spend your money right now, but when you’re older you’ll really wished that you started saving earlier. Even if you save $50 from each paycheque it will add up over the years. Saving just $100/month will add up to $1200 over one year. Over twenty years that will add up to $24,000. Not bad for simply saving $50 from each pay check instead of spending it on something you won’t remember in a year.
2. Know how much you spend
Do you know where all of your money goes? Do you walk into a store, see something you like and buy it instantly? it’s important that you know how much spend and exactly where you spend it. If you buy groceries each week, but end up eating out numerous times a week, much of that food is likely being wasted. While eating at home is cheaper, if your lifestyle is such that eating out makes more sense then you can still save money by buying less food for your home. Do you buy cosmetics or clothes and then go home and realize you already have one, two or three of the item you just purchased? To avoid this, stop making (instant) purchases.
3. Have financial goals
Where would you like to be financially in twenty or thirty years? If you haven’t thought about it yet, now is the perfect time to do so. Maybe your only goal is to retire with enough money to live on. Maybe your goal is to retire in France where you buy your very own piece of land. You first need to know how much it will cost to do whatever it is you want to do. Then do the math and figure out how much you need to start saving right now.
4. Get educated
Don’t be afraid to go to your bank and ask someone to explain things to you. Speak to you financial advisor or insurance agent and ask about fixed indexed annuities or hybrid annuities to see if one is right for you. If you’re interested in investing in something with greater risk, but you’re not sure what, ask your trusted advisor. There are also numerous books and magazines written on the topic of money, as well as websites like www.myretirementdirect.com where you can find help. You can also borrow books from the library before you buy any to find out what applies to you best. Have fun with your research and get started now!
5. Don’t let anyone else control your money
Do you allow someone else to tell you what you should do with your money? Are you easily guilted into lending someone else money or buying things for them? If any of these apply to you, it’s time to get tough with your own money. No one can force you to do anything you don’t want to. You should never hand over your pay check to someone else. If someone in your life is irresponsible with their money, it is not your job to bail them out. It’s important that women keep control over their money, especially if they are not married. When you’re married you will likely make decisions with your spouse, but if you have your own financial goals you want to achieve as well, you don’t need to give those up. It may take you longer to achieve them, but you can still do it.
The days of women not knowing what’s happening with money are long gone. These days women are earning their own money to support themselves. If you’re in the dark about money and what’s happening with yours, you can fix that. It’s never too late to take control.