Money mistakes women make

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In today’s universities there are more women graduating than men. Women are delaying marriage and starting families in order to pursue their careers. Women are breaking the glass ceiling in every aspect of life. Unfortunately, through this journey of self-empowerment and world domination, many women are still neglecting financial literacy. I am not sure if it is the result of our fathers taking the financial lead and only sharing their financial secrets with their sons, while relegating their daughters to more female roles.

I am a woman who has been navigating the world extremely well, but recently realized that I too needed more financial education. Learning how to invest, protect and grow your money can be very daunting but not impossible. I decided that it would be best to take the first small bite of this financial elephant. It is important to visit a financial professional and get professional advice but there are basic financial practices that one can adopt and internalize. There are four very basic things that we can all do that will increase our future financial security.

Never Give Up Your Career

Giving up your career is one of the mistakes that women make. It is impossible for the world to continue without strong children. Being a stay at home mom is a noble role but it does not have to be at the expense of your career. Clinging on to your knight in shining armor to support you is a mistake. If there is a death, divorce, or your knight loses his job you will be in trouble.

Always Have Medical Coverage

Medical coverage is the most important thing for a woman to have. Medical emergencies are one of the leading reasons that people end up in financial ruin. There are many medical insurance options that one can choose. In fact, it has become as simple as doing a Google search and you will find medical insurance providers that will take your needs and match them with the most appropriate medical insurance. It has become as easy as purchasing car insurance. For the equivalent of five cups of Starbucks coffee a week over four weeks you can protect yourself from financial ruins.

Build a Culture of Saving

We often feel that saving is too hard and that we do not earn enough to save more. However, it seems that we can always find the money for that surprise sale even though there is “not enough” to save. It is important to start the habit and eventually a culture of saving. If saving becomes a way of life then it is appears less daunting and becomes more attainable. Finally, it is important to note that the dollar that you will save is not the dollar that you will spend. Annual inflation erodes the value of every dollar that you save and the interest rate that most banks offer on a basic savings account does not even equal annual inflation rates.

Relying Solely on Employment Retirement Funds

Relying solely on employment retirement funds is one of the biggest mistake that you can make. There are many changes taking place in the world and one of them is the adjustment of what retirement funds will look like. Furthermore, every year the value of a dollar changes. My mother always tells me how she used to be able to by a slice of bread for $0.10. Today a good slice of bread will run you upwards of $4. It is in your best interest to diversify what you do with your money. For example, you can have employment retirement fund, savings account, investments, and a rental property. Diversifying what you do with your money will ensure that you circumvent inflation and inadequate employment retirement plans. Visiting several financial planners to learn about your options is the best way to plan for your future.


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