Women Investing for Tomorrow
Sale of a lifetime! Ladies come get your Gucci, Prada, and Louis Vuitton fashions for half the price of retail for a limited time only. I know that many of you are looking for those signature pieces that will instantly improve your fashion resumes. Whatever the occasion calls for, ultra femme, boho chic, or grunge, the accessories have arrived. Update your look for less.
Every woman needs a little retail therapy. Your boyfriend breaks up with you, an easy fix. Those red pumps you saw at the mall are now fifteen percent off. The weather sucks because it’s been raining all day and your feeling blue? That cashmere sweater seems worth the splurge. I don’t know why we women solve the majority of our problem by swiping our credit cards or spending money that we should be saving. I know that buying that hot new purse or stocking your wardrobe with the latest fashions makes the sun shine a little bit brighter. Problems and worries are a thing of the past when we’re departing our favorite stores with bags in hand. Have you had your dose of retail therapy lately?
Ladies, of course investing can be intimidating, but it’s vital to begin investing as soon as you can. Women need to save twenty percent of their income which is twice as much than men to ensure a stable financial future. “Women, especially, must invest early because they tend to live longer and therefore require more money to maintain their standard of living after retirement (McRae et al 2010).” MacRae et al also says that married woman literally cannot afford to rely solely on her husband’s earning power or retirement plan to sustain her through her retirement. In the Indian Express, the article Get a Plan for Yourself presented some glaring statistics: On average, women live five to ten years longer, earn 25percent lesser and work 11 years lesser compared to men.
According to an article where a CEO urges women to shift the notion that men need to be the “bread winner”, Women of today need to be wise in their financial planning and money management as the standard notion that men are the sole breadwinners has changed. With the cost of living increasing and lifestyles getting more advanced women should no longer rely entirely on men for financial security. Financial advisor, Carol Yip says that, “we women need to play our part in earning money as well, because at the end of the day, money is the tool for you to achieve your life’s goal (CEO 2010).”
Women, whether married or single, working or non-working, should handle their finances independently (Indian Express, 2010). Many women remain clueless when it comes to money management while they take the back seat and allow their husbands to bring in the money and pay all the bills. The benefit of learning money management is more valuable than just monetary gains.
There are countless resources available to help you learn the fundamentals of investing (McRae et al 2010). With the help of financial planners and investing experts, Black Enterprise came up with a list of the top five investing rules for women:
The first rule is to develop an action plan. Contribute to your company’s retirement plan as soon you are eligible. Start small, invest what you can, and remain committed to investing for your future.
Some of the things to keep in mind while preparing financial plan are the ability to meet daily expenses and lead a quality life, a contingency fund to take care of emergencies and unplanned expenses, and also savings for retirement (Indian Express, 2010).
The second rule is to educate yourself; develop your own financial curriculum by reading financial literature, attending seminars, and workshops. Open a simulated trading account to develop and test your knowledge at Investopedia or other sites.
The third rule is to get over your fear by determining your risk tolerance. Figure out how comfortable you are with high-, moderate-, or low-risk collection of investments. Set short and long term financial goals. Join or start an investment club.
The fourth rule is do not go at it alone. The action plan is to get your feet wet, attend investment workshops and seminars. Consider joining or starting an investment club. If you don’t understand something, ask.
The fifth rule is to invest for your retirement. Figure out how much money you need for retirement. A single retirement or Social Security account may not be good enough to fully support you during your nonworking years, so work with an advisor to determine how much money you’ll need and by when. Contribute set amounts to retirement accounts to achieve your goals. Consider supplementing your retirement income with a rental property or a small business.
Ladies, it’s okay to treat yourself with a new pair of shoes or that hot new designer hand bag when the urge arises. But self medicating with retail therapy will only harm you in the long run, especially if you are not saving money to invest in your future. Take the first step in those shiny red pumps to develop an action plan to securing your future. My motto for the ladies is to work, save, and then shop.
REFERENCE:
1. McRae, et al (2010) Investing Rules for Women: These tips will make your money grow. Black Enterprise, 70-78
2. Proquest.umi.com/pqdweb?index=2&did=2107157851&SrchMode CEO Urges Women to Need Shift From Breadwinner Aug 5, 2010
3. Proquest.umi.com/pqdweb?Index=6&did2067619041&SrchMode Get A Plan For Yourself June27,2010
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