Women! Get Up And Take Charge Of Your Finances With These Tips

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Make a Budget
If you don’t already use a budget, make one now. A budget is one of the most basic and powerful financial tools you can have — not only does it help keep your spending down, but it also helps you understand where your money is currently going, and where it could go. Having a budget is sort of like that old adage about how you need to love yourself before you can love someone else — you need to understand where your money is going on a day-to-day basis before you think about investing it elsewhere.

Forget What You’re “Not Good” At
Before you start diving into financial education, you need to internalize this: You can do it. And you can be great at it.

One reoccurring theme in the research about women and money is the sense that many women think they just aren’t good with money, numbers, or math — especially on the investment side. But if you’re ignoring your finances just because you think you aren’t good at it, you’re both hurting your financial health and selling yourself short. At any age, humans have an incredible ability to grow, adapt, and learn — plus doing things you’re bad at has benefits beyond just learning new information, such as actually making you smarter.

It’s also interesting to note that even though studies show that women often know less about investing than men, research also suggests that when women do invest, they make better investment decisions, partially because they’re more in touch with their emotions and less likely to take huge risks.

Get Educated
Now that you have a picture of your day-to-day finances and a positive attitude, it’s time to learn.

I suggest making a list of all of your financial accounts and obligations — loans, retirement accounts, bank accounts, and so on, as well as ones that you could have, but don’t yet (say, for example, if you’re interested in opening a money market account, but haven’t yet). Put a star next to any you feel like you don’t fully understand, and start researching.

Researching online is great, but one issue that the USA Today article points out is that the financial services industry “still overwhelmingly caters to men in the way it presents and discusses information and products,” and that women tend to shy away from jargon and prefer a personal approach. If you feel like you don’t understand something you’re reading, don’t be afraid to seek help — whether it’s from your partner, a friend, or a certified financial planner.

Here are some resources to get you started:

• A Beginner’s Guide to Frugal Living
• A Guide to Online Brokers for Investing Newbies
• 7 Great Investments for First-Timers
• Choosing a Retirement Account: What’s Best for You
• Women’s Money Week

Make Sure Your Financial Education Is Comprehensive

I mentioned before how much it resonated with me to see that women are often dollar-stretchers, but not investors. Just because you practice good financial habits in one area doesn’t mean that your knowledge is comprehensive. Examine your entire financial life, and make sure you aren’t ignoring any areas. Consider learning more about:

• Retirement accounts (401(k)s, IRAs, Roth IRAs, pensions, etc.)
• Investments (index funds, annuities, bonds, etc)
• Insurance (health, life, long-term care, homeowners, car, etc.)
• Loans (student loans, mortgage, credit cards, etc.)
• Frugal living (making smart purchases, examining needs vs wants, reusing and making do instead of buying new)

Focus on Goals
In this piece on Time’s website (originally published in Real Simple), writer Geraldine Sealey notes that women work better with specific goals than with numbers. Her suggestion? Instead of simply trying to amass more wealth, “Make your financial goals as detailed as possible (included an estimated cost) to increase the likelihood that you’ll follow through with what’s necessary to achieve them.” Whether your goal is to buy a house, have a six-month emergency fund, or be able to travel when you retire, making specific plans can help you achieve the goal.

Do It
Just do it. Sign up for a retirement account if you haven’t already. If your partner is usually in charge of your family finances, ask to share responsibility or take it over. Anyone who’s tried to learn a foreign language in school and then traveled to the country where people speak that language will tell you — you learn better and faster when you haveto.