Today's female has a bright future and given life expectancy projections, it is a future that females must begin financially preparing for earlier and earlier in life. As a gender, women still lack traction in wealth accumulation, financial independence and money confidence. Read my Money Manifesto for Women and see how many boxes you can check and which one will be your new idea to advance your financial independence.
Michelle's Money Manifesto for Women:
- Stop waiting. There is no better time than now. Waiting to be married, for kids to go to school, for a promotion, for things to settle down, for the divorce to be final before you start investing just puts off investing. It also puts off your chances of becoming financially independent. If you wait until tomorrow, today will just be another day gone by without a plan for your money.
- Start young. Time IN the market is most important for your money; not timing the market. I recommend that women start investing as early as age 13 to allow their money to be compounding longer. Since women are born with a life expectancy of 8-9 decades, doesn't it make sense that we are investors longer in life? More on that and the Rule of 72 in my next article for women.
- Use 5X5 to budget for investing. Starting small with monthly investing is how you get in motion with your plan. You can do so with your employer's 401(k). If you don't have an employer plan, almost every investment company accepts monthly bank drafts as a way for investors to invest. Use my 5X5 idea to get started: budget 5% of your annual salary toward monthly investments. Increase your amount by 5% each year. You will be amazed at how easy it is to invest.
- Invest in an IRA every year...even if you don't earn a living. If you are married but not earning a wage, you can still have retirement money in your name. I call this the MommyIRA. You do not have to earn it to invest it. Many stay at home mothers have absolutely no money in their name because the couple simply doesn't understand that IRAs can be funded as long as the household has earned income. Investing money in both spouses' names is a smart way to build wealth.
Wherever you are in life, I encourage you to just start. Your plan for money doesn't have to be elaborate. As women though, we must take time to become financially stable and be in control of our own destiny. I am committed to improving women's financial confidence and money savvy.
Welcome to the journey!
As individual situations vary, the information presented here should only be relied upon when coordinated with individual professional advice.