Friday, June 1, 2012, AM | Leave Comment
Traditionally women have always depended on men for the family finances. However, since the later part of the 20th century, more and more women have been living independently so far as their finances are concerned.
They quite efficiently manage their own personal and family finances.
However, an overwhelming majority of women still lack enough knowledge to lead a more successful financial life.
Nobody needs a college degree for learning just a few financial lessons – certainly not the female human species. These lessons are useful at any age. The quicker women implement the lessons of personal finance, the better off they would be financially.
The best lesson of them all is very simple but for some may be the hardest. And that is to live within your means. Doing so, you will eliminate a major source of stress and fear in your financial life.
Reaching financial nirvana…
Everyone has the right to desire how to live well today. You must fulfill your needs today but save and invest for tomorrow. That would be the equivalent of reaching financial nirvana.
While a solid understanding of personal finance is essential for both men and women, it’s more important that the female species must grasp the basic principles of money management.
These days women are marrying later in life if at all, divorcing more than ever before, and living longer than men.
Consequently, they live more as singles than as couples.
The end result is that the finance burden falls on women’s shoulders and they, therefore, must have a good understanding of how to manage their own money.
Women must save and invest
The general picture of many women that comes to mind is not very good. On the surface it may seem that they are doing great financially, but in reality they are living from paycheck to paycheck.
They may wear designer clothes and shoes, but quite a considerable number of women may not have a clue how to save money and invest to grow it.
Despite their outward appearances of affluence, a shocking number of women are on the brink of financial disaster.
There are a few steps women can take…
Men in general and women in particular can take the following steps to start the journey on the path of financial success in their lives:
It’s very hard to argue against saving. However, don’t follow the national average which goes up and down quite frequently. Set your goal for saving no matter how much it is.
At the end of the year, you would know that you have saved a good amount of money. Continue saving in the years to come making sure that you save more next year than the previous one.
Saving for Emergency
The national average for emergency fund in a family is $500 whereas the actual unexpected expenses faced by a typical family is $2,000, according to the Consumer Federation of America. Needless to say, the family must come up with the $1,500 difference.
Big-Ticket items requiring more money…
Start saving for big-screen TV, car, down payment on a house instead of borrowing and going into debt.
Start saving for retirement as early as in your 20s because, unlike earlier generations, you no longer have the luxury of putting off retirement planning. The reason is company pension fund is almost non-existent, Social Security seems to have huge problems and your savings might not be as great as you think it is.
Invest to grow your money
If you are in your 20s and 30s, you have the luxury to invest more aggressively. The closer you get to retirement, your investment strategy must take the route of being conservative. But invest you should to grow your hard-earned money.
The question is when to start saving and how much to save
Both questions can be answered very simply and that is start saving today and as much as you possibly can after taking care of your financial needs.
And never follow Mrs. Jones…
Don’t follow Mr. and Mrs. Jones. If you do, start planning for declaring bankruptcy no matter how much your income is. Sooner or latter, it will ruin your financial life.
In a Nutshell
In any financial hard times, both men and women have a hard time meeting their financial needs. However, women seem to face more financial problems than men.
So pick up a good book on personal finances and start educating yourself about what you have to do to live a more successful financial life.Facebook.com/doable.finance