Must-Read Expert Financial Tips Just For Women!
There is so much relationship advice for women available that we polled experts for the best financial advice tailored to women’s needs. Especially during life transitions, women may for the first time be totally responsible for directing their financial affairs.
Here are six professional tips on the best financial advice for women:
#1 – Financial Advice For Women
How to Make Up For Lost Earnings When You Step Out of Your Career To Raise A Family
- If your company offers a 401 (k) – contribute and take any free money offered: If your employer offers a retirement plan, join it as soon as you can and contribute as much as the plan allows. Most employers with a 401(k) plan match a fixed percentage of the employee's contribution.
- Save early and often even if you are temporally at home with the children: You can save for retirement even if you don't belong to an employer-sponsored retirement plan. Anyone receiving compensation, or married to someone receiving compensation, can contribute to an IRA. If you are over 50, you can contribute up to $6,000/year. When you open an IRA, you have two options – a traditional IRA or a Roth IRA.
- Utilize Social Security: Social Security pays benefits that are on average equal to about 40 percent of what you earned before retirement. If you do find yourself in a divorced situation, you may be eligible to receive a portion of your ex-spouse's Social Security retirement income.
How Women Can Take Emotion Out Of The Equation When It Comes To Money
- This is very difficult as we are wired with a heightened sense of emotion on purpose.
- The key is to first recognize the danger sings when they appear. Ask yourself: Is this gift necessary or can I just write a nice note or buy a $.99 card instead of purchasing a “just because her boyfriend dumper her” gift.
- Once you recognize the signs, change direction – buy a card, better yet make one at home.
- Record your successes along with the money you saved by not falling into “the emotional trap.” Most important, after you record your successes on a sheet of paper, tape it to the bathroom mirror. Record everything for 30 days and see how much you saved. Then, put half into savings, retirement or a fund for yourself for the future and spend the other half on your “passion.”
Credit Card Debt Is A Money Trap – Avoid At All Costs
- Credit card debit is one of women’s biggest traps. Many buy into the “open a credit card and save 20% on your first purchase” offer. Resole not to stop charging everything and to start getting financially stable. If you can’t pay cash for it, you don’t need it. Make it just that simple and you will find yourself out of debt and in the green in no time.
- Keep a diary of all money spent, whether it is by cash, check, credit card, etc. Once you know where your money is going; then, and only then, you can take the steps needed to prepare a good budget that you can live with and make huge strides to budgeting your debt away.
Kimberly Foss – Certified Financial Planner – President Empyrion Wealth Management
#2 – Write A Money Autobiography
What are your earliest childhood recollections about money and how do those mental tapes still play out in your life today? What has happened along the way in your working years that has impacted how you feel about money? This exercise can greatly enhance your awareness of your unique relationship with money.
Make A Plan and Believe! We all have the capacity to take over our financial futures if we really want to. Look at your financial situation honestly and to keep the first stages of your plan simple, think of what expenses are essential and what are discretionary. While you may have setbacks, remember that a healthy relationship with money is analogous to diet and exercise – so two steps forward and one step back means you are still on the way to financial independence!
Karen Lee – Certified Financial Planner – www.karenleeandassociates.com
#3 – Trust Your Women’s Intuition
A singular gender-money difference is that while men want money to grow, women want money for family protection expenses such as children's education, life insurance, having a home, etc. Women should trust their instincts. This is the right thing to do. The male philosophy can result in financial problems.
Somanth Basu, Ph.D. -Professor of Finance – Director, California Institute of Finance – www.clunet.edu/cif
#4 – Financial Advice For Women
Practice Receiving– I call the act of welcoming wealth into your life, the art of practicing receiving. In general, women are not good at asking for money and receiving it without mixed feelings. In my workshops, I encourage women to actively practice receiving money from clients, bosses, and each other. If you have trouble letting someone pick up the bill after lunch, treat you to a show, or pay you what you are worth without feeling guilty then it may be time to examine what is getting in the way of welcoming wealth and abundance into your life.
Here is an easy way to understand what makes receiving wealth difficult. Set a timer for 5 minutes and journal write about one of the following sentences. Receiving money is:
- Receiving help is….
- Receiving wealth is….
Do not edit yourself or try to come up with the "right" answer. Just let your mind wander. Notice any automatic thoughts, feelings and attitudes toward receiving that surface during this coaching exercise and make a conscious decision if this is impacting your financial health and wealth. When these thoughts come up, replace them with the mantra, "I am practicing receiving"!
Master Your Money Mindset – The sum of all your money scripts equals your money mindset. Your money mindset is influenced by a variety of factors including your family, your culture, your age, your gender, your economic social class and your personal financial experiences. Your money mindset impacts your financial behaviors whether you are conscious of it or not.
The best way to start changing your financial habits is to identify your money scripts and deciding if they are helping you in your life or getting in the way. Start by answering the following statements, going with your first response:
- Wealthy people are,,,,
- Poor people are….
- Asking for money is….
- Managing my money is….
- People who love money are….
Now that you have identified some of your money scripts, notice when they pop into your head. By being more aware of your thoughts and beliefs about money you can decide if you want to follow this advice or make a different money decision.
Kathleen Burns Kingsbury, LMHC, CPCC – Founder, KBK Wealth Connection – www.kbkwealthconnection.com/blog
#5 – Financial Tips
Spend Less Than You Earn– Put another way, "spend less than you earn" means: live within your means, don't overspend, don't get yourself into debt and start saving. Easy to say, not so easy to do, especially given the appeal of a new car, a new handbag, a couple nights each week out with friends, and a posh tropical vacation every once in a while.
Make Your Money Work For You – Get a credit card that pays you. Always use a credit card instead of a debit card, checks, or cash, IF you pay-off your balance in full each month. A credit card gives you a 30-day interest free loan, more rewards, and better visibility into exactly where your money goes.
Upgrade Your Bank Account – Each year, banks charge consumers billions of dollars in fees. To add insult to injury, the average savings account pays you less than 1% interest. So, do your homework and get a savings account that has a high interest rate.
Protect Your Downside – The best laid financial plan can be quickly ruined by a streak of misfortune: job loss, fire, theft, or health problems. You need to protect yourself, but it's not as hard as you think. Establish an emergency fund with 3-6 months expenses. Make sure you have insurance: health, home owners/renters, car, etc.
Aaron Patzer – Founder – https://www.mint.com/
#6 – The First, Most Important, Step in Successful Money Management
The first most important step in successful money management is to have the proper mindset in how you view and, therefore, handle your finances. Remember this, with every dollar that goes through your hands there are three places it needs to go, not necessarily in equal thirds, but in three places.
- Pay your bills – or you may not have your freedom for long.
- Spend some – if you save it all 'till later and don't live to enjoy it, what good would that be?
- Save some – to cover the larger ticket items that the weekly paycheck won't cover and so that someday you won't have to work anymore.
The problem with many people today is that we do pay our bills, which is a good thing, but we spend some and save what's left, and that is backwards. You should be saving first and then spend what's left. Having a long term vision for your future rather than living for today is also a critical factor for success.
Nancy D. Butler, CFP(R), CDFA, CLTC – www.aboveallelse.org
The best financial advice can only be obtained from experts. Advice for women, especially during life transitions, is uniquely important. As one of our experts said, the most important thing is to demand respect because it’s your money and you have a right to ask all the questions you feel important and get straight answers prior to making any decisions.
What are your tips for "financial advice for women?" Join the discussion at my discreet community – Women's Health and Beauty Answers – to see what real women are saying, and to share your secrets!