Financial planning is different for women than to men as women have different needs in their life. Every decision you make has a financial planning component to it, for example go for a trip, buy a diet book, watch a movie, your kid's education & etc, all these cost money. Money plays a big part in our lives. Not having enough money is a scary thing, but that fear can either be motivating or crippling. Only you decide which it will do to you.
As a woman, you need to understand your financial situation and learn more about money. You need to do more than just balance the checkbook and pay the bills. Here are some facts about women:
Women live longer than men; in average women live 7 years longer than men; hence, women need to plan for longer retirement period.
In general, women earn less than men, even though with the very same job.
Based on recent statistic, 50% of women failed in their marriage and the average of widowhood is 56.
90% of women become wholly responsible for their finance at some point during their lifetime.
The jobs market turn over rates are high for women. More women are out of the job market and spend in average of 11.5 years caring for children or an elderly relative.
Most women lack of knowledge to adequately plan for retirement.
For most women, social security is the only source of retirement benefits and many found it does not enough to support their retirement period.
Sound like a scary statistic. You need to understand that you as a woman have difference financial needs than men, always start your financial planning as early as you get started your first job. Things that you need to do so that you have a better control in your financial are:
Learn about money; you can control it if you do not know about it. Hence, the first thing you should do is learn about money such as how to earn it, save it, double it with investment, protect it, keep it along to and then pass it to your next generation.
Plan for a retirement fund is an important task in your financial planning process. You should start to plan for your retirement as early as your first job because you may not have the luxury 40 years in a career to save for your retirement fund.
Learn how to get away from bad debts and how to use good debts to increase your net worth.
Know your financial situation all the time and take charge of it. And after you are getting marriage, you need to share in managing your family's finances.
Get to know how social security is fitted into your retirement plan.
Always find the answers on what you don't know about money.
In summary
Every decisions you make as a woman will have a financial planning component to it. Hence, financial planning is essential for women; you should always learn up the skills needed to plan you financial and make good financial decisions and be successful.
You might hear that financial planning for women is difficult or complicated. You might even hear that women are bad at financial planning because they can't understand numbers! Nothing is further from the truth, and financial planning for women is almost exactly like financial planning for men. There are a few basic steps that everyone, male and female, should take to get their finances under control.
However, financial planning for women does have a few things that make it distinct from other financial planning types. For instance, many women plan to have children at some point in their lives. Most women who choose to give birth take some time off of work while they're pregnant, and while their child is young.
Any good method of financial planning for women is going to take kids into account. You'll also want to remember about medical issues that are specific to women, like yearly exams and specific diseases. However, the basic procedure is the same for everybody. We all need to look at our expenses, cut out expenses that we don't need, and save money for an emergency.
The first step in any good course of financial planning for women is to make a budget. Figure out how much money is coming in, and from what sources. Make a list of all your expenses, and compare them to the money you have coming in. You should, ideally, be making at least a little more than you spend. If not, it's time to make some changes.
Next, look at your expenses and cut out the ones you don't need. Pay attention to where your money goes. Spending too much on things you don't need, like eating out and new shoes? You don't have to cut these things out entirely. Just cut back a little. The savings you'll get will eventually add up.
Step three in our financial planning strategy for women is saving. Once you've freed up your money, so that you have some left over, it's important to remember to save for unexpected expenses. You never know when you'll become sick, get hurt, or need to repair your car. That's why putting away even a tiny bit of money each month can be a real benefit.
In addition to saving money, you'll also want to make sure that you have good insurance. This might seem like one of those unneeded expenses you can just cut, but if something ever happens to you, your car, or your home, you'll be thankful for the safety net that insurance provides. Just be sure that you get the least expensive, but most effective insurance you can.
Financial planning for women isn't the hard task that some people make it out to be. All you have to do is pay attention and plan properly, and you'll be able to get control over your finances, too. Never let anyone say that financial planning for women is hard to do.
Both Cornie Herring & Andrew Chan are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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