| On average, women live approximately seven | | | | and then live on what's left and not spend first |
| years longer than men. But very often women | | | | and save what's left at the end of the month. |
| never provide for themselves sufficiently to have | | | | The The great Henry Ford once said: |
| enough money to live on, and being financially | | | | "You don't get rich by that what you earn. You |
| secure during those extra years. | | | | get rich by what you don't spend." |
| Most women are up against more and different | | | | If you're a home-mom with only your husband |
| financial challenges than men. On average, they | | | | working, you can open up a spousal IRA in your |
| unfortunately still don't earn as much as men do, | | | | name. Your husband can contribute to it and you'll |
| and chances are that they are more likely to take | | | | both have more money during retirement. |
| time off during their careers to raise children. | | | | 2. Make sure that you have enough investments. |
| Furthermore, women tend to invest less than | | | | Now I don't necessarily mean stocks, options, |
| men do. | | | | futures or commodities. Depending on your |
| All this results in financial difficulties and hardship | | | | knowledge about the stock market, these may |
| for many women later in life. | | | | not be suitable for you 'cos they do bear certain |
| 1. Most married women leave financial matters to | | | | risks. What I mean is having policies like mutual |
| their husbands. So, if you are married, don't leave | | | | funds or life insurance to cover at least five years |
| the financial planning to your husband alone. | | | | of income. |
| Because marriage should be a 50/50, or win-win | | | | 80 - 90% of all investments should be invested in |
| situation anyway you must always stay involved | | | | secure and long-term policies! |
| as an equal. | | | | Half of all marriages end in divorce, and three |
| As I already mentioned in a previous article that I | | | | quarters of all women are eventually widowed. |
| wrote, never give control over your money to | | | | Good investment policies can also account for an |
| someone else! I can't stress this enough. I've have | | | | unexpected illness or accident that can impair your |
| seen people go down financially before my very | | | | finances. If your employer doesn't offer it, obtain |
| eyes because of this fatal mistake. Lucky for one | | | | individual coverage youself. What is also a good |
| person that she's my own mother! At least me | | | | idea is to have up to 3 monthly salaries stashed in |
| and other family members can support her, | | | | your bank account that you can get hold of |
| because my father doesn't. | | | | quickly...just in case! |
| She left all the finances in the hands of my father | | | | 3. Never cash in on retirement funds! To many |
| that unfortunately didn't know the very first thing | | | | people end up cashing in their retirement fund |
| about controlling and handling money. He had | | | | balances (whether it's a 401 (k) or any other |
| absolutely no money management skills | | | | retirement plan) when they change jobs. |
| whatsoever. | | | | Still others take out loans against their balances, |
| And then they separated after 30 years and the | | | | permanently reducing the amount of earnings |
| financial downward spiral started. | | | | they would have accumulated. |
| If you're not involved in your day-to-day family | | | | If you want to accumulate wealth, tax-deferred |
| finances, you're putting yourself at risk. | | | | retirement plans like 401(k) plans are a great way |
| So if you're married and you let your spouse | | | | to do it, but resist the urge to tap those funds |
| handle all the financial matters, you're at risk if | | | | before retirement 'cos that's not the idea of a |
| your spouse dies or becomes seriously ill or if you | | | | retirement plan! |
| divorce. Know the details of your family's | | | | Also people that emigrate into another country |
| finances, investments, debts, retirement savings, | | | | cash in their retirement balance and wast it for |
| etc. Discuss your savings options with your | | | | things like the move, the flight into the new |
| husband and learn your financial options. | | | | country, new furniture or a new car 'cos the old |
| Don't turn your investments and financial affairs | | | | one wasn't worth taking along anymore, etc. |
| over to a broker or financial consultant either | | | | That's not the idea of a retirement plan either! If |
| without keeping track of what is being done with | | | | you change countries you should know 2 things: |
| your money and being involved in investment | | | | - Is it temporary... |
| decisions. Never give control of your money to | | | | - or it it permanently? |
| anyone else. NEVER!!! | | | | If it's temporary, then leave your money where it |
| By the rule of thumb men should save 10% of | | | | is and let it grow earning interest. |
| your gross income each year. Women however, | | | | If it's permanently, then you can cash in whatever |
| should save at least 15%. This is to account for | | | | you've accumulated so far and reinvest it in |
| their longer life expectancy and the loss of | | | | another retirement plan in the country you're now |
| salaries many women face when they raise their | | | | living in. |
| children. | | | | And if you have an even better idea...great! Well |
| Now I know that for many women 15% is a lot | | | | done! As long as you don't squander you |
| of money. It all boils down to money | | | | retirement plan flushing it down the drain! |
| management again. To gain wealth and financial | | | | All the best! |
| freedom, you should always "pay yourself first" | | | | |