Five Financial Success Strategies for Today’s Busy Woman

Five Financial Success Strategies for Today’s Busy Woman
Provided by Alicia Eberle, a financial representative with Commonwealth Financial Group, a MassMutual Agency; courtesy of Massachusetts Mutual
Life Insurance Company (MassMutual)

It’s preparing for the unexpected to help protect the lifestyle you have worked so hard to achieve. Women play a pivotal role in our economic vitality, and the future of our society. Not just because of your contributions – whether as an employee, business owner or even “mompreneur” – but because you have worked hard for everything you’ve achieved. Yet, throughout it all, you’ve remained the backbone of your family unit.

You would think that being a member of the most influential segment of the U.S. population would put you in the driver’s seat. Unfortunately, if you’re like many women today, the hard reality you face is that the growing demands on your time can unfortunately distract you from taking appropriate steps to help yourself and your family get – and stay – on track financially. But it doesn’t have to be that way. The following five steps are designed to help you in your journey to greater financial security.

Step #1: Be honest with yourself. Take a good, hard look at where you and your family members spend money and identify whether the expenditure is motivated by a short-term desire or a long-term goal. Adjust your budget and your spending pattern to reflect a vested interest in your financial future – not just the extra stuff that might seem important now, but won’t matter much to you down the road. (Keep some fun money in your budget; however, so you and your family members don’t feel deprived.)

Step #2: Manage your money – and your debt – wisely. If you are overspending on your credit cards and finding yourself paying the minimum balance each month, you should consider getting your use of credit under control. It is critical that you have a good handle on both your budget and your credit score. Be sure to check out valuable consumer-oriented websites, such as http://www.ftc.gov/bcp/edu/microsite /moneymatters/index.html from the Federal Trade Commission. It’s an excellent resource for those who are looking to manage money – and debt –for greater long-term financial security.

Step #3: Plan for the unexpected. Recently, many Americans began to save more when they realized that job security was not something they could rely on – others faced the harsh reality of trying to pay their bills with substantially less income (or none at all), thanks to a layoff or reduced work schedule. Do you have enough money stashed away for a rainy day? It is advised that you should have at least six months of expenses saved in case of an emergency. It won’t take long if you set your mind to it and start saving right away. Start small if you have to, but start now. Tip: Save a set amount from each paycheck, in an account separate from your checking, that is earmarked for emergencies only. Think of it as a regular bill you must pay.

Step #4: Talk about the hard stuff. It is never easy to have difficult conversations. But the unexpected can – and unfortunately, does– happen sometimes. Whether you are married, single, divorced, have children, care for aging parents or a disabled loved one, bringing up the subject of death or disability – or even divorce –can be painful. However, it is important that you think about these life events and how they would affect you or someone you love if they were to occur.Preparing for the unexpected is a good decision; it can help you to protect the lifestyle you have worked so hard to achieve.

Step #5: Start a family finances action plan. With a to-do list a mile long, most families are struggling to keep all together. But despite busy schedules, it’s important to talk to your family about your finances and concerns. Consider setting aside an hour once a week—or every other week at the very least—to talk through your current expense issues, financial goals and savings plan. A weekly or bi-weekly check point can be a good way to start a healthy dialogue about your family’s financial goals. Of course, choosing a knowledgeable, local financial professional can help you and your family
get – and stay – on track financially.

© 2010 Massachusetts Mutual Life Insurance Company, Springfield, MA
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