THERE is a lot of financial advice out there, if you know where to look. There are thousands of financial management books targeted at women, and plenty of tips on the Internet.
Here are our top money management tips for women; they could make the difference between financial freedom and financial dependency.
1. Depend on yourself: You must earn your own money, or find a way to create a stream of income.
Some women give up their careers when children come along, and become dependent on their spouse for income.
If you are inclined to be there for your future children, plan for it properly. While you’re still working, put in place a plan that will allow you to have income even if you’re not working. This can be done through investments, a savings product that gives you a fixed amount every year, or rental income from real estate.
If you’re already not working, think of something you can do from home: freelancing, setting up a home business, e-commerce.
2. Spend below your earning capacity: This is common sense, yet it’s hard to keep to the budget. With the proliferation of credit cards and interest-free instalments, it seems the whole world is conspiring to get you to spend. Don’t. If you want to grow your wealth, you need seed money.
To get seed money, you need to have some cash left over every month, after deducting your expenses. Instead of another bout of retail therapy, put that money away and invest it.
3. Have a say on how money is spent in your family: Whether you’re contributing to a two-income family or are a stay-at-home spouse, you must have a say in your family financials. Make sure you are involved in family financial decisions. Get educated about money. Learn how investments work. Study the economy.
4. Set financial goals: Be clear about what financial independence means to you.
Decide on what you want, and work at putting plans and investments in place that will allow you streams of income to that end.
5. Build an emergency fund: You should have a fund to cushion against emergencies. Most financial books advocate a three to six month buffer.
6. It’s never too late: No matter what age you are, it’s never to late to start planning for financial freedom.
Learn how to invest, and start now. Put in place a plan that suits your income and lifestyle.
Talk to a professional financial planner, who can point you in the right direction. Get educated now.
Source: Star Online