Latest studies show that most women will be single again at some point in their lives. Divorce rates are over 50%, many women are in relationships that will end, and women are definitely outliving their spouses in record numbers. All of this should raise a red flag for women that they need to be savvy when it comes to their finances – especially since women are prone to giving away their financial power to men, and are still less likely to make to study finances the way men do. When I got married many years ago, I knew nothing about finance, and made all of the 5 mistakes listed here. Single again, in my fifties, I sure wish I knew then what I know now. 1. Establish good credit in your own name. Even if you do not use a lot of your own credit, it is really important that you have a credit history of your own. Have a credit card in your name only that you use judiciously – being sure to make payments on time. 2. Have your own checking account. Even if you pay most bills from a joint account, it is important that you have some money just for you to spend however you see fit, and to have this available for emergencies. 3. Have a separate savings account. Save a portion of every dollar you earn. We live in a society that is used to instant gratification. Many families, even those with big incomes, live pay check to paycheck. 4. Establish a separate investment or retirement account. Too many women have had husbands end up with or spend all their joint savings. The way to make sure this never happens to you is to protect yourself. 5. Invest in your financial success. This means investing the time, effort and maybe money to become financially knowledgeable. Make sure you understand what your investment options are, how to make the best financial decisions, and how to make your money work for you. If you have owned everything jointly with your spouse and have no credit cards or assets in your name only, and suddenly find yourself single, it will be difficult to establish credit – even if your joint credit has been good. If you don’t have a personal credit history it is difficult to get lenders to give you credit. The best time to build credit is when you don’t really need it because you can make your payments on time. Money may not buy happiness, but money is power. The more you are in control of your finances, the more powerful you feel. It is not the money that makes us happy, but what it can allow us to have or to do that can provide happiness. Having enough money saved can allow us to have the courage to leave a bad marriage or a horrible job, to start a new business, or to make a great investment. If you are currently making any or all of the mistakes I did, start today to take control of your finances. Here are 10 steps you can take this week: 1. Visit a local bank. (check out several of your local banks online to see who offers free checking without maintaining a large balance and who offers the best interest rates on savings and certificates of deposit). Sit down with the manager (tip: it is always good to be on first name basis with your bank manager!) and ask them for advice depending on amounts you have to work with. Open a checking, savings and investment account. 2. Get a copy of your credit score. You can get a free report twice a year on line. You should check this yearly. 3. Take back control. If you are married and not involved in the monthly finances at your house, get involved. Know how much money is coming in, what your expenses are and know if your bills are being paid on time. Be aware of what your spouse is charging. 4. Start a money group with several friends. Get together twice a month for an hour to discuss a money related subject. This will be beneficial to everyone and more fun than learning on your own. 5. If you are employed, sign up for a credit card in your own name. Be sure to pay your balance in full each month and on time, and in several months, call and ask them to up your credit line. 6. Start to save. Find a way to save even a small amount regularly. It is better to save $5.00 a week every week than to wait to begin until you can afford more. With compounding, saving even small amounts regularly can add up to huge amounts over time. 7. Reduce an expense. Call and ask for a reduction in your interest rate if you carry credit card balance and apply the amount you will save toward reducing debt. Find a better phone plan, or combine internet, phone and cable service, find a better car insurance company, turn down the thermostat, and reduce your cable service. If you look carefully you can find money somewhere. 8. Eliminate an expense and put that money toward savings. Pack your lunch, bring your morning coffee from home, wash your own car, or cancel the gym membership. Almost all of us have something we could eliminate.
Source: http://www.ArticlePros.com/author.php?Valerie Hylen
|
