Women and Finances – Stuart Burns

Mother’s Day is a great time to think about a lot of the unique financial challenges that woman encounter. So we are going to dedicate the May Financial Matters to women and discuss some of those specific challenges faced by women. I read many articles regarding financial issues and draw from a wide range of sources when thinking of topics for financial matters. So this month we are going to think about some tips created by Suse Orman that speak directly to women and finances. Keep in mind that some tips apply across men and women and are wise for all of us to practice. With that being said let’s review the top 10 financial tips for women by Suse Orman;

1) Don’t rely on someone else, like a husband or boyfriend, for your financial security.

Educate yourself about money management and investing.
Be proactive in your own finances

In prior articles you may remember we discussed that for married couples you can do things like have separate checking accounts and so forth to give you more independence or you can keep combined accounts. There is no right or wrong in this and both the husband and wife should have an active voice in what you are comfortable with and be in agreement.

2) Set goals – it’s key to financial success.

This is good advice regardless of gender –so make sure you set goals and be SMART (specific, measurable, achievable, realistic and time-bound).

3) Don’t use money to make yourself feel good.

That type of high is fleeting. Instead, do things that promote self-respect and creativity so you don’t have to seek those feelings through spending money.
The less stress you have by eliminating debts and having financial freedom will make you feel good.

4) Spend less than you earn – it’s the secret to creating wealth.

This is great advice again regardless of gender.
Using coupons, etc that will save you money on items you will buy anyway is a great way to get the same thing and spend less.

5) Get an education.

People with college degrees make on average significantly more money than those who don’t have degrees.
Women now are earning close to 60% of the associate and bachelor degrees and over half of the master’s and doctor’s degrees.

6) Build an emergency fund.

Without one, losing your job or incurring a large unexpected bill could force you to take on heavy credit card debt, and could put you into a financial hole that will be difficult if not impossible to dig your way out of.
Only 32% of Americans would be able to cover a $5,000 emergency without going into debt

7) Be involved in the day-to-day management of your family’s finances, and talk about money with your spouse.

This is easy for my wife to do since we both work for a bank. But this should be a comfortable subject to dive into.
We discuss what our goals are together and what we hope to accomplish and then both contribute

8) Don’t take on your partner’s or spouse’s debt when you marry.

Wait until you’re both out of debt before tying the knot, or protect yourself with a pre-nuptial agreement. They’re not only for the rich.
The key here is that both partners need to be honest about the current financial situation and discuss what they are willing to bring into the relationship.

9) Don’t let the fear of losing money, fear of failure, or fear of the unknown stop you from investing.

There are many ways we can classify investing and discussing with a professional is not a bad decision
The short and simple is that the long term winning strategy is to be consistent and be diversified
Start with getting familiar with your plans at work (like 401’s) and the mutual funds the most likely offer

10) Learn from your money mistakes. Don’t let them hobble you.

The more education you have on the decisions you are making financially will help avoid some of the mistakes and result in less stress.

Your financial security is dependent on your attitudes and beliefs about money and your willingness to take your financial future into your own hands.

Lastly I want to say a Happy Mother’s Day to all the Father Matters Moms.

Thank You Mom For Everything
How did you find the energy, Mom
To do all the things you did,
To be teacher, nurse and counselor
To me, when I was a kid.
How did you do it all, Mom,
Be a chauffeur, cook and friend,
Yet find time to be a playmate,
I just can’t comprehend.
I see now it was love, Mom
That made you come whenever I’d call,
Your inexhaustible love, Mom
And I thank you for it all.

Keep your eyes open for upcoming Father Matter’s seminars and I hope to see you soon.

For some great financial tools and resources go to: http://learn.bankofamerica.com/money-management/ and http://www.bettermoneyhabits.com or contact Stuart Burns at 602-464-1381 or email me at stuart.j.burns@bankofamerica.com