4 Financial Self-Care Tips for Women
When it comes to financial management, women face unique challenges over their male counterparts. Less than a quarter of the adult female population feel they received sufficient preparation from their parents concerning financial matters. This lack of preparation has left many women struggling to handle their financial future. Women need to take control of their financial independence. Below are a few tips to help get you started.
1. Make Budgeting a Priority
Creating a budget will allow you to track your spending habits, determine if you have income shortfalls, and allow you to save for your future financial goals. Even a simple budget will help you to get and stay on track. Calculate your monthly expenses, including the amount of money you want to save each month, and subtract it from your monthly net income. If there is a shortfall, you may need to cut expenses or find ways to supplement your income.2
2. Prioritize Investing
Investments are a great way to set up another income source and an excellent vehicle for growing savings. Investments can help to combat inflation and may provide you with consistent dividends that are a great supplement to your income. Investing is a great way to increase wealth if you appropriately evaluate your risks and investing goals before making the jump. For some people, short-term investments are the ideal vehicle, while others may want to grow money for retirement through long-term investments.1
3. Be Prepared for the Unexpected
Significant expenses happen when you least suspect them. Without an emergency fund, those unexpected expenses will quickly derail your budget and eat into savings. Make funding your emergency savings part of your budget. When you have to pull money out of it, replace it. If possible, put aside three to six months of expenses in the emergency fund. This will help you through significant issues such as job loss or medical leave.1
4. Plan for Retirement Early
The earlier you begin to save for retirement, the longer those investments have to grow. On top of that, women will live an average of six to eight years longer than men. This means that your retirement money will have to last longer. If you have an employer match for your 401k, try to max out your contributions up to the maximum match. You also may want to look at other retirement options, such as Roth IRAs.2
With many women making less than men and relying on retirement funds longer, it is critical to learn how to plan for their financial future. Women may find more struggles on the road to financial independence. Yet by improving their financial literacy and focusing on saving and investing, they will be starting down the path to a brighter financial future.
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