24 Financial Tips for Women

As women, we must plan for the expected and have a contingency plan. We must identify possible scenarios that could occur and develop solutions on how to deal with them. 

More than 80% of women will at some point in their lives have sole responsibility for their finances. 

Every woman can and should know how to manage her own finances. 

We need to become empowered with financial knowledge which will help us make the best financial decisions throughout our life. 

Here are 24 ways for us women to manage our finances:

Spending/Budgeting 

1. Create a budget or spending plan to control spending. Make your plan flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income

2. Create an emergency fund to cover monthly expenses for at least 3 months

3. Balance your monthly income and outgoings and document every transaction, including credit/afterpay transactions and trips to the ATM 

4. Reduce spending by 30-50%. Spread spending for large purchases over several months to ease the burden. Buy more needs vs. wants and reduce your credit card debt

5. Set both short-term and long-term goals such as paying off a bill and saving for a property

Debt 

1. Pay down debt and get current on late accounts. Keep debt (excluding rent/mortgage) at 15% or less of your net monthly income. 

2. Keep credit card balances at 20% or less of the credit limit. 

3. Pay more than the minimum monthly payment. 

4. Pay back loans. Consider using student loan forgiveness programs if applicable

Banking 

1. Pay bills online

2. Use direct debits where possible

3. Open an account with overdraft protection 

4. Save, save some more and save some more

Estate Planning 

1. Create a will to being setting up estate planning when you have long term partner, moreso when you have children

 2. Create a medical directive to identify your medical wishes

Investing 

1. Max out your tax advantaged retirement plans. Commit to saving a set percentage of your income, so when your income increases, your contributions will also increase 

2. Control your risks through diversifying and investing in various index funds that are a combination or low, medium and high risk to limit your losses

3. Focus on long term growth. Leave your money untouched for the next 5 to 10 years to see the benefits of your money growing

4. Invest as much as you can in tax-deferred retirement plans. Your money will grow faster and you can afford to invest more now because you won't have to pay taxes on the money until you retire 

5. Once you have decided how much to invest in each type of asset, rebalance often to your original percentages, particularly after a large market shift, upward or downward

6. Plan for the future and always have a plan A, B and C

Support and Emotions 

1. Develop a support network (friends, family, church members, join support groups and a financial network etc.) to get advice, support and encouragement

2. Think rationally and without emotion. Calm down and think logically about how to deal with your finances

3. Don't blame others for your financial mistakes. Take accountability and responsibility for your actions

Article Source: https://EzineArticles.com/expert/Harrine_Freeman/52122