It seems like we are all becoming busier and busier. Though it’s very important to pause and take a look at what is going on with your money. No matter how old you are, you need to know how to navigate your finances as a woman. You should be in charge of your financial planning. Many women are already proactive in areas of investing their money in new-age instruments like mutual funds and more traditional avenues such as real estate/gold. Let’s take a closer look at how to navigate finances.
TOOLS FOR NAVIGATING YOUR FINANCES
When it comes to the financial goals you set for yourself do you spare a weekend to think about what you want to achieve? Whether you are single, married, or divorced, you need to take the responsibility for securing your future to achieve your goals. Set regular money dates with yourself and take a look over all your financial documents. Think of everything you need to prepare both long-term and short-term. Ask yourself, will you be supporting aging parents? Should you begin thinking about long-term care planning? Are you bringing up children in a single-family home? How much do you need to save for funding their education? It is time to step up and take charge of your financial future. The following are all tools to help you navigate your finances as a woman.
PLAN FOR AN EMERGENCY
Emergency funds may help you at the time of job loss, sudden medical treatment, etc. Your emergency fund should be able to sustain you for around 6-12 months during your “rainy days”. This money should be easily accessible. It’s best to open a High Yield Savings Account (HYSA). If you have any dependents, buy adequate life insurance so that in case of your sudden death the policy provides the income replacement. You’re likely to be covered by your company’s group insurance policy. However, evaluate the benefits based on your medical history and how well it covers your dependents. Consider buying a policy that covers you even after your retirement.
CREATE YOUR BUDGET
Creating a budget before spending or investing is the first step to building wealth. There are many different methods of budgeting to try and when you are just getting started it can be really overwhelming. Essentially you need to know how much money you are bringing in and how much is going out. Remember to always track your spending so that when you do sit down and have money dates – everything matches up. A quick look at an excel sheet at the end of the month helps to know what you have gone overboard with. This will tell you what you might need to cut in order to make ends meet if necessary.
CORRECTLY CALCULATE YOUR TAXES
Be sure to correctly calculate tax payments. Go through your salary slip and understand how much tax you need to pay. After considering the deductions.
Invest your saved amount in an account that helps you save on taxes all while helping to create wealth too. Most organizations ask you to declare your investments at the beginning of the financial year. A good idea would be to start investing early and split the investments across the year so that you don’t have to struggle to invest a lump sum at the last minute.
These tools will all help you better navigate your finances. For more tips on how to save and spend smart, be sure to follow money multiplied on Instagram and subscribe to the newsletter.
Author Bio: Bethaine Parker is a content writer and blogger, specializing in personal finance. Curiosity for learning new is a passion and this curiosity along with experience has made her a financial adviser. She is associated with debtconsolidationus.org where she shares her knowledge through her writings. You can find her on Twitter @BethaineP.
