Ladies!!! It's true. IT COSTS MORE to be single.
[Don't get me wrong, there are advantages to being single. You do get to call the shots in your life for sure, but it does cost you in your savings, spending, as well as your benefits vs being in a relationship with someone who is financially adept where the financial obligations are shared.]
Add the fact that women in general make far less than men, and that leaves with more to do. Let's take a look at what women can do to become more financially savvy. Now it does not matter when you start, as long as you do but the younger you start the better, so your money has more time to grow. There are simple things you can do to take control of you money so more of your money stays with you.
MY TOP 7 TIPS FOR ALL THE SINGLE LADIES
1. MASTER the Intentional Spending Strategy and Plan
Sticking to a plan that you create helps you stay intentional with your spending. Whenever faced with a spending decision, ask yourself if it is a need or a want, if it aligns with your goals, and whether it brings you true value and happiness. If it does, then spend it with a plan in place. The Plan is there to help you recognize your patterns and break bad habits so create the plan and stick to it. If you need to pivot then you know where and when you need to make the change so you get back on track.
2. PRACTICE the 70 / 10 / 10 / 10 Rule
Allocate your funds according to this rule.
If your numbers do not fit according to this rule, that is fine, create your own version that works best for you but the categories should remain the same as listed below..
70% to Fixed & Variable Expenses: Fixed = mortgage/rent, car note, auto insurance, life insurance Variable = utilities, fuel, groceries, debts such as student loan, credit card debt 10% to Savings: this is for Emergencies. More on that below. 10% to Investing: for retirement so think long term investing 10% to Other Expenses: this is for fun, entertainment, and things like gifts
3. EMERGENCY SAVINGS
General advice is to have at least 6 months in emergency savings but my recommendation is to have at least 18 months saved especially with the rising cost of everything and the economic uncertainty. This will cover your essential living expenses in case you lose your job or other financial crisis. Have a large enough in savings especially if you only have a single source of income.
High Yield Savings Account (HYSA) is a great option to put your money in buckets so you know exactly what the money is allocated for. SoFi's HYSA gives you 4.5% (as of October 2023). The link take you to a page where you can begin by getting $25 when you open SoFi Checking & Savings and up to $250 when we receive your first direct deposit into the account.
4. RETIREMENT
This is a must! If you have not started yet, run don't walk. Start investing for your retirement today. The more time you have before retirement, the more you will have in retirement.
Here are some options to consider:
401K: You can start by investing in your employer sponsored plan. This may be a pre-tax plan (401K) which means you pay taxes when you pull your money out in retirement. Not optimal as taxes are expected to rise. It is important to note that you should at least contribute the amount the company matches in your 401K so you don't miss out on free money.
Roth 401K: If there is an option for a Roth 401K, choose that option instead. You will pay taxes today and all the growth in your account will be tax free when you pull it out at retirement. If you qualify, you can put your money in a Roth IRA if a Roth 401K is not an option. You can open one at any brokerage firm.
5. GET OUT OF DEBT
To do this, start by making a list all your debts that have an interest associated with them and pay the highest one off 1st and pay the minimum on the rest. Once the highest interest debt is paid off, do the same with the next highest and so on. Over the long-term, you will pay less in interest vs paying the smallest debt off first. This is called the Avalanche Strategy for debt payoff.
6. HAVE A SIDE HUSTLE
Explore your VINGSA! All of us are naturally gifted at something. Why not create a side-hustle out of it? This day in age, we should all have multiple streams of income.
7. CREDIT CARD MASTERY
Many people use their debit card vs credit card. I personally refrain from using my debit card. Check out the Mastering Credit Card vs Debit Card Usage blog for more information on both before making a decision on which (or both) work for you. Get really good at maximizing out the benefits of credit cards. Best way is to only charge what you budgeted for and paying it off monthly (aka don't carry a balance).
Comentários