Top Money Expert Tips For Women
When it comes to financial well-being, women tend to be at a disadvantage compared to their male counterparts. Women have lower financial literacy rates, are more likely to say they cannot afford to save for retirement, are more likely to leave the workforce to become caregivers, and generally earn less than men; During this time, they have a longer life expectancy and therefore will have higher long-term costs, according to Annuity.org.
While it may take some time to balance finances, women should do whatever they can to ensure that they are managing their finances well in the short and long term. Here’s What Top Money Experts Say Women Should Do to Improve Their Financial Outlook.
Have a plan for the “ big three ”
Jill Schlesinger, CFP and author of the personal finance website Jill on Money, said JWI that women need to start taking their financial planning seriously in their 30s at the latest and should focus on three main areas.
“The three big issues that people need to have covered before they start planning for their future are: they need to be free from all consumer debt (no credit cards or car loans); they must have six to 12 months of spending in the bank in a secure emergency reserve fund; and they have to contribute to a pension plan, ”she said. “Once they’ve covered these big three, they can start planning for different goals in their life.”
Know your worth
One way to make sure you’re getting enough pay is to know how much other people in similar roles are making – yet women are often reluctant to discuss their salaries.
“I’m definitely advocating for women to be transparent with each other when it comes to pay,” Barbara Ginty, certified financial planner and host of the “Future Rich” podcast, told the WeWork blog. “Knowledge is power, and being able to speak openly with your close friends and colleagues – male or female – about pay can help you defend yourself better.”
Be aware of the exact destination of your money
Ginty said it’s important to know exactly how much money you make and spend each month.
“Know what’s happening, where it’s going and if your spending is serving a purpose,” she said on the WeWork blog.
You can do this by looking at your bank statements, as well as your credit and debit card statements. You need to track your spending with apps, spreadsheets, or even on paper.
Pay yourself first
Barbara Huson, author of Secrets of Six-Figure Women, advises that in order to create wealth, women should regularly contribute a portion of what they earn to their personal savings.
“In other words, they pay each other first,” she wrote in a blog post. “I have seen countless under-earners turn small salaries into big bank balances by simply depositing small amounts into a savings account each month.”
Huson recommends setting up automatic transfers to make this tip very easy to follow.
Aim to have $ 10,000 in emergency cash
Setting up an emergency fund can save you from going into debt if your financial situation changes unexpectedly. It should be in the form of cash that you can easily access.
“Protect your money,” Danetha Doe, founder of “Money and Mimosas” told Travel Noire. “Every woman should have access to at least $ 10,000 in cash, whether it’s in a traditional savings account or in another vehicle that you can access within 24 hours.”
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Create ‘buckets of money’
In addition to saving money in an emergency, you may have other financial goals you save for. Tiffany “The Budgenista” Aliche, co-host of the “Brown Ambition” podcast, said they create individual savings accounts – or “buckets of money” – for each of these goals.
“A bucket of money is just an online-only savings account that makes it easy for you to save and measure your money, like rain in a bucket,” she told MadameNoire. “The advantage of having an online-only savings account is that you can create as many categories or compartments as you want or need. I have one for my trip, one for my house, and one for a car. You could have one for birthdays, holidays and if you are a mom you could have one labeled “sports” for your kids’ activities. You can open as many savings accounts as you want and then name them so you know exactly what the money is for. “
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Maximize your tax savings accounts
Women should also prioritize saving for retirement and use tax-efficient accounts.
“Your retirement plan at work as a 401 (k) or 403 (b) and IRAs should be your first stop in building a retirement savings portfolio because unlike most other investment vehicles , these accounts provide tax benefits, “Farnoosh Torabi, host of the” So Money “Podcast, wrote in a blog post. “My company’s 401 (k) was the first investment portfolio I opened in my twenties. It not only came with a company match of 50 cents for every dollar up to 5%, I also benefited from the 401 (k) tax deduction. My contributions, up to a certain amount, have helped reduce my taxable income each year. “
Start investing if you haven’t already
Jully-Alma Taveras, founder of the YouTube channel “Investing Latina”, started making her educational videos to educate women about the importance of investing.
“Women have entered the workforce and are making more money than ever before – becoming financially powerful through investing is the next step,” she told the Personal Capital blog. If you’re new to investing, she said, “Start small and stay engaged. I started with $ 50 per paycheck in a 403 (b), and have now grown to manage my multi-armed investment portfolio. And that’s what I want every woman in the world to have.
Stop making excuses
If you know you need to learn more about finances and investing, take the time to educate yourself.
“Let’s be real realistic. Women say they have to do it. It’s not about doing it. It’s about wanting to do it, ”Suze Orman, author of“ Women & Money, ”told The Associated Press. “If they wanted to do it, are you kidding me?” They can watch CNBC, read Barrons, and there are financial books galore. Read my book “Women & Money”, listen to my podcast. It’s an excuse. It’s like saying I need to lose weight – OK, so do it.
Ask for help
If you have a specific financial goal in mind and aren’t sure how to achieve it, you may want to seek help from a financial professional.
“Working with a financial planner can be a smart way to stay informed along the way and to bring in professional expertise to make sure you’re saving enough and you’re on track to achieving your goals today. ‘hui and in the future,’ Torabi said in a blog post. Publish. “To start your research, ask your friends, family and colleagues for their recommendations. The first consultations with the planners are usually free and this is an opportunity to see if working with this person would be a good solution. Look for planners with the CFP or Certified Financial Planner designation. “
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