In a world largely dominated by men, it is often intimidating for women to establish a career and achieve their life goals conveniently. Although the 21st century has exposed women to a lot more economic opportunities than in the past, it is still vital for women to work to achieve financial success in this male-dominated society. If you are a woman and want to secure your financial status, here are six simple steps for you to follow:
1. Saving Money
You should have enough money on-hand to handle at least two major unexpected expenditures, which means $1,000 in an emergency fund, according to Dave Ramsey, financial writer. You can do lots of things to build up an emergency fund, like taking a certain percentage of each paycheck and putting it toward your savings. You can also reduce expenses on needed items and put the difference into your savings.
2. Relationship Status? Plan Accordingly
If you are single, do not put off financial planning until you are in a relationship. According to current research, 17 percent of adult women in the U.S. have never been married. You could be one of the 17 percent who will not have a spouse as a financial back-up, so plan accordingly.
There are also a record number of women who will be the sole supporters of their families, or earn the majority of income in a relationship. If you are in a relationship, it’s a good idea to have an open discussion with your partner about finances, especially about the use of credit cards.
3. Think About How You View Money
How do you feel about money? Is money necessary only to provide the necessities of life, or do you want to earn and save money to invest and eventually gain wealth? Do you want to help other people with your money? Talking with others and figuring out how you view and value money can put you on a path to financial success.
4. Create Multiple Income Sources
According to one of the richest men in the world, Warren Buffet, it isn’t prudent to depend on one income source. You always need to have multiple sources of income, even if you have to create your own income source.
You need to research how to have multiple income sources or where you can invest. However, if you don’t have any experience with investing, it’s best to hire a financial advisor who can point you in the right direction.
5. Track Your Expenditure
If women really want to achieve their realistic goals by themselves, it’s important to record cash flow. Make a budget that records cash inflow, such as government benefits, wages, and interest; also add cash outflow like rent or mortgage payments, groceries, debt repayment, and utility bills to track your expenditures efficiently.
6. Review Your Insurance Policies
If you are working as a full-time employee, your employer will likely provide you with health insurance. However, you should not only rely upon one option. As you grow, your life requirements will also increase, so you need to review your coverages to make sure you are prepared for the worst. And if you’re not getting enough coverage, you need to make changes. You also need to be aware of deductibles, and make sure that you have the money to pay a high deductible.