Top Money Tips for the Ladies
At one time, all financial decisions were left to the man of the house. Women are no longer relegated to the kitchen while the men talk finances with the banker or broker. In fact, most women are encouraged to join in the conversation and add to the conversation of any financial plans. Women need to be actively involved in personal finance plans whether they’re in a relationship or not. Many of the tips for women and money are the same as they are for men and money.
Tip number one: Know the whole picture.
In most relationships, one partner is stronger when it comes to financial knowledge. That doesn’t mean the other person should make all the decisions or be the only person in charge of finance. Both parties need to know exactly where the money goes and how much is put away for savings. If you’re single, keeping a tight rein on finances is a priority, whether it’s getting the best deal on credit cards or saving for retirement, women need to have a working knowledge of all aspects on money management. You may not balance the checkbook, but you should know the balance and where the money went.
Tip number two: Pay yourself first.
If you want to be financially successful, you need to pay yourself each payday. People who have a substantial retirement plan and emergency savings pay themselves 10 percent first. The easiest way to do this is to have the money removed from your paycheck first, never counting it as part of your income. If you’re a self employed individual, saving is a bit more difficult since you don’t have a paycheck but secure money from profits. If you’re self-employed, calculate profits as frequently as possible and put away 10 percent of those funds.
Tip number three: Take good care of your credit score.
There’s plenty you can do to keep your credit score high or raise it. Paying your bills in a timely fashion is the most important, but also keeping credit card balances lower helps too. Make sure any credit cards you may have had, but don’t use any longer, are canceled. You can do this by pulling a credit report and checking to insure all the cards listed are in use. Contact the credit card company in writing to cancel any that are shown, but not in use and then contact the credit rating agency to report the card closed.
Tip number three: Have only two major credit cards.
The easiest way to keep your credit and personal finance under control is by limiting access to it. If you’re attracted to cash back or mileage cards, you should have two credit cards. The first card is the one you use for short term charges. You pay this one off at the end of the month. Since most mileage and cash back cards have a higher interest rate, this should be the short term card. The other card can be for emergencies or bills you can’t pay in just one month, such as major car repair. Before you charge, make sure you need it.
Tip number four: You have as much value as your car or house, make sure you have insurance.
There are many different types of personal insurance women should have. If you’re in a relationship and depend on two incomes, women should have life insurance. Women also need to protect their income, particularly if they work in a professional capacity. Disability insurance is an excellent way to do that. While single individuals with no dependants may only need enough life insurance to bury them, nursing home insurance is still extremely important, particularly as they age.
Bill Kinder @BKAssocAdvisors
Bill Kinder is the President and Chartered Financial Consultant with Bill Kinder & Associates. A company that helps people from all walks of life and income levels to position & manage their money wisely, minimize their taxes owed, protect their assets and plan for a comfortable retirement. Bill has been in business for over 35 years, holds a BS degree, plus a Chartered Life Underwriter and Chartered Financial Consultant certifications, as well as the Million Dollar Round Table’s “Top of the Table” honor. Follow him @BKAssocAdvisors or if you would like to ask him a question, send it to firstname.lastname@example.org. If you’d like a FREE ‘WISE Money’ Consultation, call him at (304) 250-0250.