5 things women can do for their financial future

5 things women can do for their financial future

Taking control of your finances can be tough no matter who you are. Whether you are a child struggling to save for a bigger toy, or an adult who wasn't introduced to finances until they moved out, everyone struggles.

Women in particular often struggle with personal finance due to wage gaps, lack of financial literacy, and failure of financial advisers to take them seriously. Fortunately, there are things you can do to help your financial future, and pave the way for more successful finance.

Don't rely on men for financial security

Even if your husband or boyfriend foots most of the bills, it's important to have savings and investments of your own. Educate yourself on finances, and do what you can to ensure that you have financial security beyond who you are in a relationship with.

Set financial goals

You can't move in the right direction if you don't have a direction. Set a financial goal for yourself so that you know for sure what you want to work towards. It can be a small goal, such as saving $100 for a rainy day, or a large goal, such as paying down debt or saving for retirement. Once you have a goal, you'll be able to at least decide on a direction for your money.

Spend less than you earn

This might seem like a common sense rule, but a surprising number of people live beyond their means. Beware of lifestyle creep, where you find more ways to add to your lifestyle with every raise and bonus, and instead focus on maintaining your current level of living. If your lifestyle doesn't constantly expand to fill new money avenues, you'll be able to save more.

Keep an emergency fund

59% of Americans do not have enough savings to cover a $1,000 emergency. With uncertainty in the job market and concerns over Covid-19, it's more important to have an emergency savings than ever. Try to put a few dollars into savings every week, so if an emergency does come up you'll be better able to handle it.

Don't let fear stop you from investing

Even during rapidly shifting markets, investing is still a powerful tool for growing your money. A savings account or bond yields very little interest, and while better than keeping your money in checking, it really it doesn't do anything for you. On the other hand, long term investments often make back 6% or more, even if they do have dips along the way.

In order to reduce risk, rather than not invest at all you should work on diversity in your portfolio, that way if the housing market crashes you'll still have other markets to fall back on.

How you handle money can have a huge impact on your life. Careful management can make a real difference in the quality of your life, and how much you get out of it. Make financial literacy a major goal, so you can get the most out of every dollar you make.

https://www.thebalance.com/top-ten-money-tips-for-women-1290009