Featured Image: @nnennaechem
Article By: Don Potochny
You have probably heard the famous speaker series called “Rich dad, poor dad.” Once again, the seminar for working fathers is making its way across the United States. The 2018 version of “Rich dad, poor dad, begs one question: When will women enjoy the sage advice given at the personal finance presentations? After all, women comprise a rapidly growing percentage of the workforce. If you are part of the workforce, you know several women who have their financial act together. What are their secrets to financial success? Let us count the ways.
1. They Create A Budget
Financially smart women start on the road to managing money properly by creating a budget. They start with every source of income, and they use the same income figures throughout the year. If women earn raises, they adjust the income figure for subsequent months. For expenses, you should calculate necessary monthly expenses such as car and mortgage payments. Whatever you have left over is referred to as discretionary spending. The Your Balanced Budget (Monthly Planner) is a great place to start when it comes to figuring out a budget that works for you.
2. They Minimize Their Debt
Credit card debt can quickly snowball into a financial crisis that sends you into a deep hole. Women who smartly handle their finances minimize credit card debt. In fact, credit cards only come into play whenever there is an emergency. Financial emergencies can include unexpected medical expenses and damage to a home not covered by insurance. Financially savvy women operate under the principle of “If I don’t have the money, I’m not using credit to buy something I don’t need.” Whether you want to buy a house, a car, or refinance your current mortgage it is imperative that you minimize your debt and improve your credit score. Get a FREE repair consultation here to start improving your credit today and accomplishing your goals.
3. They Develop a Plan to Get Out of Debt
When the worst case scenario happens, and you have to use a credit card to pay for an emergency, you must produce a plan to get out of debt as quickly as possible. For financially smart women, this means devising a clear strategy on how much to pay off according to a carefully thought out timeline. If you have incurred substantial debt because of impulsive spending habits, focus on paying off the card that comes with the highest interest rate first, before whittling down other sources of credit card debt.
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4. They Set Long-Term Goals
To achieve financial independence, the best female money managers set long-term goals. The setting of goals includes debt reduction, substantial purchases, earning a raise, and cutting back on spending. You should shoot for attainable goals to boost confidence. If you quickly exceed most or all of your financial goals one year, enhance your financial vision the next year by generating more difficult financial goals to achieve.
5. They Make Retirement A Priority
One of your long-term goals should include saving your hard earned money for retirement. Financially successful women begin retirement savings programs early in their careers to reap the benefits of compounding. If your company offers a retirement package, it most likely matches what you contribute by a percentage spelled out in the employee manual. Savvy women put a little money away each pay period for retirement and take advantage of retirement funding tax breaks. You should take an active role in managing any retirement plan you participate in, whether the plan is company sponsored or you go outside the company to start an IRA.
6. Speaking of Tax Breaks
The United States tax code changes every year, with 2018 ushering in some of the most dramatic changes in several years. Financially adept women stay on top of tax changes and take advantage of any additional tax breaks. If time or and complexity becomes an issue, women who manage money have no problem consulting with a certified tax preparer.
7. They Invest in Their Career
One of the most effective ways to earn a raise involves improving your professional skill set. Financially aware women use the money saved by not buying more jewelry or adding to a wardrobe to pay for continuing education classes. Returning to school might also mean pursuing an advanced degree online or passing a certification class required for a better paying job.
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8. They Possess Incredible Self-Discipline
You cannot expect to win the money game by buying on impulse the items you do not need. Financially smart women see something they like in a store window and immediately review the monthly budget to determine if the purchase falls within spending restrictions. Women who have their finances in order ask an essential question: “Do I need this product.” Impulsive spending is often a problem for women who receive raises and have more cash to burn for the purchase of fantastic products and services.
9. They Use A Computer Software Program to Organize Their Finances
If you still keep track of your finances by crunching the numbers on a legal pad. You have fallen behind the savvy women who organize their funds by using computer software programs. The best personal finance software not only accurately calculates what you have left over each month, but it also projects what your finance picture should look like in the future. If you are in search of a reasonably priced personal finance software consider checking out Quicken Personal Finance Software, it can help you manage all aspects of your personal finances and it is very straightforward to set up and use.
10. They Know Their Net Worth
This tip seems like a no-brainer, although you might be surprised to learn that many women do not know how much they are worth. Net worth calculates by adding up all of your assets and then subtracting liabilities. Assets include physical objects such as vehicles and financial instruments like long-term government bonds. Smart money managers know exactly where they stand financially at any given point.
Finally, let’s not forget the importance of income. If financial goals are not met, smart women discover alternative ways to increase revenue. This can include taking on a second job, earning money as an independent contractor, and receiving an increase in salary.
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