Set Financial Goals
Make it a regular habit to set financial
goals, and when you reach them,
set new ones. If long-term goals
seem too overwhelming, set short
term goals instead, so that it’s easier
to measure your progress. As with
exercise and nutrition, some people
find it’s best to set daily or weekly
objectives. Examples: “I will save $50
this paycheck,” or, “Today, I will bring
my lunch rather than eat out, and save
$10.”
Get Out of Debt
Not all debts are created equal.
Some
debt, such as home loans or student
loans, may offer tax write-offs and enable
women to achieve greater wealth or
earning power. Other debt, such as credit
card debts, offers no such benefits. If you
have credit card debt, try to pay the entire
balance every month.
Or pay more than
the minimum monthly payment. Either
way, you will reduce your interest costs. If
you are experiencing financial difficulty,
contact creditors before payments are
due.
Ask creditors to waive fees, reduce
the interest rate, or work with you to
create a payment schedule that will work
with your budget.
Save, Save More, and Keep
Saving
Many people consider themselves
spenders, not savers. But saving should
be viewed as spending for your
future. Everyone needs a nest egg
or rainy day fund.
It’s easiest to start
small—regularly deposit even a modest
amount into an interest-bearing
savings account. Soon you’ll have a
special savings fund that can help you
handle unanticipated expenses.
Manage Your Own Finances
In the past, many women were less
experienced at managing finances
than men. Even today, some women
depend on their partner/spouse’s
income and financial expertise.
If
something happens, such as job loss,
separation, divorce, or the death of a
spouse, women may be left with few
financial resources and a mountain of
debt. That’s why it’s important to learn
how to manage your own finances
and increase your financial literacy. A
good way to do this is to establish and
manage your own checking, savings
and retirement accounts.
Plan for Retirement Now
The sooner you start planning for
retirement, the better.
Don’t put
off saving for retirement or leave it
up to someone else to make those
decisions. This is especially important
for women, since women tend to live
longer and earn less than men, and
often have career gaps due to family
responsibilities. As a result, women
often receive lower pensions and
have fewer assets in retirement.
If you
already have a retirement plan, increase
your contributions or open a second
account if at all possible. If you haven’t
started, attend retirement workshops
hosted by your employer, or non-profits,
government agencies, community
centers, or other non-commercial
entities to learn more about your
options. Review your Social Security
benefits and use the on-line retirement
calculator: www.ssa.gov
Protect Yourself from
Fraud
If a financial opportunity sounds too
good to be true, it most likely is.
Don’t
believe promises of quick profits or
“insider” information, and don’t fall for
urgent warnings that “you must act
now.” Always verify that paperwork
matches promises, and never sign
a blank form. Be sure to ask how a
financial services professional receives
compensation. For example, do they
receive an up-front fee, or do they
earn commissions or bonuses based
on the the cost or amount of products
they sell? Unethical salespeople may
try to switch interest rates, terms and
conditions, or change other important
financial details.
And remember it’s a
bad sign if a salesperson won’t allow
you time to compare prices and features
or explore other options. These tactics
are warning signs of fraud. Consider
diversifying the types of accounts you
use for your investments as well as the
institutions that hold your money.
Also,
review your telephone bills, credit card
bills, cell phone bills and other accounts
to be sure you’re not being charged for
a product or service you didn’t order or
don’t need.
Safeguard your Personal
Information
Request and review your credit
report at least once every year,
and look for accounts you don’t
recognize (especially new accounts),
suspicious charges, or any addresses
where you’ve never lived. To get
your free credit report, go to www.
annualcreditreport.com Make it a
practice to regularly review your bills,
financial statements, files and records.
Shred (don’t toss) cancelled checks,
credit card statements, old bills and
other financial papers you no longer
need. When creating passwords, don’t
use your mother’s maiden name, pet or
children’s names, birth or anniversary
dates, phone numbers, consecutive
numbers, or the last four digits of your
Social Security number.
2015
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