Gone are the days when men made all of the financial decisions while women had no idea about their finances. It’s important that women identify their own financial goals and take steps to achieve them, especially if they’re single.
An emergency fund, a retirement account, and a savings plan can go a long way toward your independence.
Getting started is the hardest part. To help you out, we’ve compiled a list of tips on financial planning for women. Read on to find out more!
Financial Planning for Women Made Easy
Women often ignore the need for financial planning, and men far outpace them in investing retirement savings.
Ladies often live longer than men and spend more time out of the workforce due to things like childbirth and caring for their family. Therefore, they receive lower social security and pension benefits. That’s why they should actually be saving more for retirement than men do.
Keep reading to find out how to plan for the future and secure financial freedom!
Start by educating yourself on your financial needs and how much you should be saving for retirement.
There are countless free resources out there. Plus, employers often have partnerships with financial planners or retirement advisors.
Websites and shows like Right on the Money with Tommy Mai are great for women who are new to financial planning, so check them out.
2. Identify Your Financial Goals
Once you’ve educated yourself and know what you need to save, set goals.
Do you want to pay off debt? Save for a down payment for a home? Save for a large purchase or vacation?
Identify your financial goals and put them into writing. Revisit them often to make sure they are still relevant.
3. Build an Emergency Fund
One of your financial goals should be to build an emergency fund if you don’t have one already. Emergency funds can pay for an unexpected car repair, medical bill, or in extreme cases, a layoff.
Most experts recommend having three to six months worth of living expenses in your emergency account. This should be your primary financial goal.
4. Invest Your Money
Once you set up an emergency, it’s time to start thinking about investing. Whether that’s in the stock market – with certificates of deposit, or in your employer-sponsored retirement account, assess your options and make a decision.
If your employer has a retirement account option for you, they may also match your contributions. This is free money being invested in your retirement. Take advantage of it as much as possible.
5. Take Risks with Your Investments
How risky you are with your investments will depend on your age and retirement plans.
Are you young and healthy? You can afford to be a little risky with your investments.
If you find yourself getting into the investing world later on in life, be a little more cautious with your money.
Take the Steps to Financial Freedom
Don’t waste any more time and start educating yourself today. Identify your financial goals, make a plan, and stick to it.
Assert your financial independence and set yourself up for the future. Financial planning for women is easier than ever before.
How do you manage your finances? Do you have any tips to share? Leave a comment below!