Many women are neither conscious of their financial standing nor take precautions to ensure their financial stability until later in life when they have to settle more bills and make difficult decisions. Through more information women can achieve a more solid financial standing. This brief overview enlightens women on how to achieve financial stability.
- Tips on Things Women Should Know
- General rule is to save 20% of your income, 50% on basic needs like food shelter and clothing and 30% to sustain your lifestyle.
- Make saving automatic- Automate your savings through a monthly transfer to a saving account of every paycheck.
- Know your credit score number- This will help you not miss payment and talk your creditors in to removing late your fees.
- Use two credit cards one for use and one for emergencies. These fewer cards will help reduce overusing money.
- Invest in the stock market- This is a beneficial long term beneficial investment. This may especially work if have money you will not be using in the near future like a period of the next five years.
- Be cautious while buying a house– If you buy a house that you are not likely to live in for more than five years, your house’s value may go down while selling. House maintenance costs three percent of the purchase price of the house.
- Women according to studies ask for thirty percent less salary compared to their male peers. If you devalue you lest assured the world will not raise the price.
- Financial mistakes women make:
- Not taking part in money management. They don’t try to compensate for making less than men.
- According to studies women make 77 cents while a man is making a dollar. Try to negotiate your salary and ask for a raise if qualify for it.
- Not taking into consideration that women live longer than men.According to studies women live six to eight years longer than men. This means you will need maintenance while he is dead.
- Not buying long-term care insurance. Women last six to eight years longer than men and studies show that seventy percent of sixty five years old are most likely to need long term care.
- Not risking enough- While investing women to be risk avoiding rather than risk assessing and risk taking in a prudent way.
- Choosing ‘stay at home” over all “keep working” based on current salary. This present value calculation does take in to account the salary increases one is likely to receive and the experience one may gain.
- Not having credit in your own name- This is a disadvantage in building your own credit history and you may not qualify for mortgages or car loans.
- Using joint accounts- This may work at a disadvantage in case of a divorce and you had transferred your inheritance in to the joint account and money you made before marriage.
Women are strong enough to achieve their dreams if only they realized it. It is time to make an example for our daughters by taking the mantle and acquiring financial freedom. Achieving financial freedom could never be easier.