Retirement accounts aside, you can also invest through a regular brokerage account. They can help female entrepreneurs save for their future in a tax-efficient way. Self-employed? Consider a solo 401(k), SEP IRA, or traditional or Roth IRA. Most programs will match up to 3% of your salary, and some will go even higher. Try to contribute at least enough to secure an employer match. An ideal target is 15% of your income, but saving even 5% to 10% can have a huge impact over time. If you’re already investing in a 401(k) or other retirement account, that’s great! Take a step further and see if you can dial that up a bit. You can also use your next tax refund to strengthen your savings. To increase your emergency fund, funnel a portion of every paycheck into your savings account. If your emergency fund is tied up in your 401(k), for example, you’ll pay taxes on any distributions-plus a 10% early withdrawal penalty if you’re under 59 ½. This money should ideally be held in a high-yield savings account that’s easy to access should you need it. The rule of thumb is to have three to six months’ worth of expenses in your emergency fund, but you might go higher if your income fluctuates. An unexpected job loss could turn your finances upside down if you aren’t prepared. That might be a small-scale hiccup like a minor home repair or medical bill-or something more substantial. It’s only a matter of time before you run into a surprise expense. If you don’t advocate for yourself, no one else will. When you research average compensation in your area for your position and experience, how does your current pay measure up? If there’s a gap, it may be time to negotiate a pay raise or look for a new employer. The idea is to clarify your spending habits. You can do this easily with an app or by reviewing your recent credit card and debit card statements. Begin by tracking your spending from the last few months. After meeting all your monthly financial obligations, how much is left over for saving and investing? Eliminating unnecessary expenses can free up more cash to put toward your financial goals. Now is an ideal time to review your cash flow. Here are five simple action items to help you get there. Doing so can reduce financial stress, increase well-being, and set the stage for long-term financial strength. With a new year ahead, now is the perfect time for women to review their finances. I’m a financial advisor who’s dedicated to leveling the playing field and helping women overcome financial adversity. On a positive note, a record number of women are investing outside of retirement-and outperforming male investors by 40 basis points, according to a 2021 Fidelity Investments analysis. Meanwhile, women are expected to live longer, which means we’ll likely need more money in retirement. The CDC reports that two out of every three caregivers in the U.S. A woman’s income and ability to save for retirement may also be impacted by caregiving roles. We earn 82 cents for every dollar a man makes, according to a recent PayScale report. It can sometimes feel like the financial deck is stacked against women.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |