Being a young woman in the modern world. We’ve all been there. Some of us are currently living it. And regrettably, some are still lost in their financial journey. If you’re a woman finishing up college, entering the workforce, or currently in the 20-ish years of your life (like me), then this article is for you.
Regardless, all basic financial advice is not gender-specific because everyone needs to know how to budget right, save and invest. Regardless, social changes over the last couple of decades have added to women’s choices, and with those choices comes new financial needs to put into consideration.
Starting with the right mindset. Start by thinking about money and finance the same way you think about your physical fitness. Do you take care of yourself by eating right and going to the gym? How about your financial health? Now and when you get old? Money gives you flexibility and choice regarding your future.
Plan for the unexpected. Most young women end up in a debt or a financially debilitating situation when bad circumstances happen: accident, family member’s death, natural disasters, etc. The advice is to save and invest thinking as if you might not find a partner. I know, I know, it’s a bit sad to think that way, but it’s equally important to protect yourself. Whatever the case is, it’s important to plan ahead for the unplanned.
Budgeting the right way. The first thing to consider is budgeting your money. There are a lot of free-to-use apps out there to help you begin. Most comes with a way to calculate how much money you can spend each day. It’s awesome that these apps can change your behavior. That $5 coffee that was part of your morning ritual may instantly feel like a luxury.
Don’t just save – invest! Your caution or anxiety may handicap you. If you’re unsure about investing, then it’s okay to start slowly. Invest a small amount of something that’s easy to understand, like equity funds. You can always ask financial counselors and do research to see if it’s right for your needs.
Teach yourself investing. I haven’t started educating myself about investment until lately. Every woman needs to understand their finances and the ways they can invest. Go online and start looking at finance course and possible investment options that may be the right fit for you.
Consider investment funds. Given the almost infinite number investment options available out there, choosing the right one to put your hard earned money in can seem like daunting task. Before choosing the right scheme, decide first whether you want to invest in a bank, business, or equity funds. The latter can be the safest and most proper way to save and grow your money.
Your money sleeps in the bank, earning too little too matte. Engaging in business can be a very risky move. However, choosing equity funds is a low-risk way to save your money and grow it over time. It’s what most young people are engaging in right now as well.
That’s it! If you decide to go with investment funds, you must diligently research and analyze fund performance before you invest your money. Take note that your decision must ignore personal preferences, including un-informed recommendations, advertising or brand names.
How are you handling your finances?