I’m a big advocate for making sure people have adequate insurance to not only cover their final expenses and burial, but to ensure whoever is left behind is set up for financial success.įinally, give yourself permission to change your budget as needed to fit different stages.
But by not having life insurance, you will have an impact on the generation after. A lot of times, especially in the black community, life insurance wasn’t something that was spoken about. I’m trying to educate this next generation about the importance of life insurance to create generational wealth. Life insurance is the foundation of any financial plan, too. Yes, you should tackle high-interest debt first and foremost, but you can also build a small nest egg in the process. There are also those who say you should pay off all your debt before you invest, but I’m an advocate of doing both.
#Woman and finances full#
If you’re going to invest in a tax-free savings account (TFSA), make sure the money is not sitting in cash, but growing so you’re actually saving tax and using the TFSA for its full purpose. It’s a good idea to have an emergency fund to cover immediate expenses (i.e., rent, car payments, utilities, mortgage) for three to six months for those unexpected surprises. Too much access all the time can be a problem, too, so part of my strategy is to set up “out of sight, out of mind” automatic savings accounts as a forced way to make sure money is put aside each month. Having a budget and tracking your expenses can help ensure your spending is aligned with the lifestyle that you’re trying to create. A major commonality I see among women is not looking at their statements carefully enough and recognizing where their excess spending is happening. If you don’t know what’s going on with your finances, it doesn’t matter how much money you’re making. But if you’re still living in the past and not open to change, you will hit a roadblock when it comes to budgeting and keep perpetuating the same habits.īudget tips that work: Create a budget, whether that’s a simple Excel sheet or something an adviser develops for you. If they try a budget and it doesn’t work, they may automatically think it’s not possible for them. There’s also a lot of negative self-talk among women based on previous spending mistakes.
But budgeting is really just a spending plan to help you prioritize what you want to spend on and what you don’t. There’s this fear that if you have a budget, you’re going to have to give up the things you love. On what’s holding women back: Budgeting itself has this stigma of being negative and restrictive. This advertisement has not loaded yet, but your article continues below.
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