Wably Money

5 pieces of financial advice every single woman needs

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financial woman

Image: Edyta Pawlowska/shutterstock

As a single woman, managing your finances is important. While you probably have all your bills paid and know how much you make and all, how about investments and retirement planning? If you don’t have a clear plan yet, here are five pieces of financial advice which can help you ensure an enjoyable today, and secure future.

Here are the five pieces of financial advice every single woman needs.

Know Your Numbers

Having a clear idea of what’s in your bank account, where your investments are located, and the costs of your lifestyle are important to your financial health. If you’ve handed this responsibility over to someone else, it’s time to start being aware of the inflows and outflows of your finances.

Live Within Your Means

As a rule of thumb, spending less than you earn is wise. Sounds like common sense, doesn’t it? But it’s just as common to be susceptible to peer pressure, advertising, and familial expectations when it comes to spending money on material goods and other expensive purchases. You just have to know your limits and stick to them, especially when it involves getting into debt. It helps to seek out activities that fit within your budget, while avoiding activities or material objects that cost a lot and don’t bring long lasting enjoyment. Prioritize freedom, happiness and peace of mind, over owning material goods.

Learn to Say NO

Will lending money bring you into the red? Will it leave you feeling insecure about your financial situation? Then it’s time to say ‘No.’ As a rule, only lend money when you are in a position to do so. Putting your own needs first is important when it comes to financial security—beware of sacrificing your own needs when playing a caregiving role. Digging into your own savings to support others is not a wise move, because we can’t take care of anyone if we are not taking care of ourselves first. Doling out cash to family members who make poor financial decisions is a common trap—there’s a need to know where to draw the line.

Save for Retirement…Really!

To prepare for retirement, planning and saving should start as early as possible. It should be prioritized right alongside housing and food. Once you start your retirement savings plan, make a commitment to stick to it—that means no sticking your hand into the pot when an extraneous expenditure arises.

Improve Your Investing IQ

Get educated about investing. Seek out information from a trusted source and get tailored financial advice for your lifestyle needs. As you get more educated about the subject, your confidence will rise as well, improving your ability to plan for a secure retirement. This means that you won’t err on the side of being conservative. As a general guideline, your money will need to grow, which means allocating at least 60% to equities if you are in your 50s, and 80% if you are younger. With smarter investing decisions, your overall retirement confidence will rise.

With clear boundaries and a commitment to placing your financial needs first, you can be confident in having a retirement plan that will serve you well in years to come.