Women and Money..
1. Not establishing a real budget for the month
“The biggest challenge for budgeting is tracking the daily expenses. Keeping track of your car payments,your rent, your utilities and your cell phone is not necessarily difficult,”says Montanaro, a certified financial planner at USAA. But if you really want to fine-tune your finances, basic expenses are just the beginning. Take a look at your lifestyle. If you’re a party-girl, save some pocket change for your pomegranate martinis. But don’t be too much of a stickler because the unexpected moments are the most exciting part. Plan just enough to avoid end of the month mishaps.
2. Not saving
‘Starting with a low level of saving, like 3 or 4 percent of your income and then as you get raises throughout your career, you can increase the level of savings,” says Luke Delorme, Research Fellow at the American Institute for Economic Research. Even if you don’t earn a lot of money, put away your pennies for in-case-of-emergency. You’ll be happy you have it if your car breaks down. Even if economizing seems to be soporific, it is crucial for your future. The best way to succeed in saving is to save at the beginning of the month. As soon as you receive your income, save a percentage and don’t begin the month without saving. You know already how much you can spend. Your savings don’t depend on your expenses, but your expenses depend on your savings.
3. Thinking that credit cards represent free money
You don’t realize how much you spend during only one day of shopping when you use your credit card. It seems to be like an unlimited source of money. But we have to be careful about it and check our bank accounts often. Make it a habit. Write down your password to your online banking and keep it on you, in a safe place.That way you no longer have an excuse and can keep track of your expenses.
4. Not knowing how you spend your money each month
At the end of the month,your account is at zero and you have absolutely no idea how you could have spent all that money. You’re human, don’t worry. Money goes really fast. Use your online banking to check your percentages, how much you spent on food or shopping, for example. Doing so will help you spend less the next month and even less the month after. With this exercise, you will begin to manage your money.
5. Forgetting to pay your bills
When you open your mail and cringe at your bills, don t put them away. Don’t think, ‘I will pay it later, tomorrow, or another day’. Just do it that moment. Because otherwise,you will forget to pay. The longer you postpone it, the more you’ll end up paying in interest.
6. Not having an emergency fund
65% of Americans do not have sufficient emergency savings, according to a Bankrate survey. In case of a medical emergency or a loss of your job, you should always have an emergency (2-3 months of wages for expenses). Emergency funds could help you stay debt-free during a financial crisis.
7. Putting off saving for retirement
Retirement still seems incredibly far away. The fact is that a retirement savings is more effective if you start saving when you are young. The earlier you start saving, the more years compound interest can work in your favor. Ask a Baby boomer, retirement comes faster than you think, and at that moment, you will be proud of yourself if you saved more than pennies.
8. Forgetting Insurance
You have to take out a lot of different kinds of insurance, such as health, life, home and disability.However, you forget to do it because it’s not a fun subject to chat about or to manage. But, it is necessary to live in peace, exempt from worry. Take the time to choose the best insurance plan, that fits your lifestyle. Having insurance will make you feel secure, above everything, if something bad happens.