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Financial Planning Tips for Women to Build a Future Nest Egg

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Whether you are married or single, managing your finances can be challenging. You may wonder if you’ll have enough to take care of yourself and any family members. Or managing your finances better might be another thing you are planning on doing “someday”. Luckily, with a few simple tips, you can prepare for the future and have peace of mind that you are secure.

Prepare for the Unexpected

Many women fail to plan for the unexpected, but unforeseen events could derail your financial planning. That might include terminal illnesses, sudden death, or disability. For instance, if your budget requires a significant other’s financial contributions, what would you do if they passed away or were no longer able to work? Consider getting a life insurance policy, which can protect you and your loved ones.

If you have a family, life insurance can replace your income. That way, the remaining spouse can have someone take care of the household work. Even if you’re single, you should still consider life insurance, especially if you have debt with a cosigner. If you own more assets, there is more at stake if you face an unanticipated event. Before choosing a policy, it’s best to research how life settlements work. That involves getting an estimate from the top brokers and providers of life settlement companies to get a cash payout for your policy. So, if you no longer need the policy, you’ll have options open and will not be blindsided.

Start Investing  

Women often live longer than men, but they might not be as likely to save for the future. Start preparing for retirement by investing. Begin by making at least the minimum contributions, so your employer matches them. If you don’t, you’re not taking advantage of free money. If you can, consider contributing more than the minimum. Some employers offer a Roth 403(b) or Roth 401(k). That will give you a tax-free source of income once you retire and withdraw funds. If you can fit them in your budget, consider Health Savings Accounts (HSA) or Roth IRAs. With an HSA, you can save funds for specific health-related expenses.

If you have discretionary income, consider putting that toward other investments. You should do your research on other investment opportunities. If you have never invested before, consider investing in a Certificate of Deposit (CD), which is an easy way to get started. The amount you get from your investments might not seem like much, but the interest you earn will start to earn interest over time. That’s the benefit of compound interest and the earlier you start setting funds aside, the more wealth you will build for the future.

Grow Your Financial Knowledge

Now is the time to grow your financial knowledge. There are many free resources to do that, so you don’t have any excuse not to. Just set aside some time each week to learn something new. Ask yourself what would be most beneficial to know. If you aren’t familiar with financial terminology, read relevant online encyclopedias. By becoming more informed, you can make better decisions for your future.


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