Top 10 Tips
for Single Women
#1
Pay Yourself First!
Transfer a set amount from your earnings to your savings each month. Even a small amount in the beginning helps. If your employer offers a 401K match, strive to contribute at least enough to receive the full match.
#2
Reduce Consumer Debt!
Avoid high credit card finance charges by paying off the balances each month, or if you must carry a balance, use only cards offering low-interest rates beyond the introductory period.
#3
Maintain Good Credit!
You can obtain one free annual credit report from each of the three major credit bureaus: TransUnion, Equifax, and Experian. Order one report from one of the credit bureaus every four months to monitor changes on a timely basis. Good credit is required for obtaining loans and low-interest rates. Monitoring your credit can also help you guard against identity theft.
#4
Diversify Your Savings!
Develop a plan for your short- and long-term needs. Consider your liquidity needs, risk tolerance, and time horizon for retirement and other more immediate financial goals. Be sure to consult your CFP® Professional to determine an appropriate strategy for your financial future.
#5
Take Advantage of Tax Benefits!
If you qualify, contribute to an Individual Retirement Account (IRA), an employer sponsored 401(k) plan, or another similar retirement plan. These plans offer tax benefits that may help enhance your retirement savings.
#6
Update Your Estate Plan!
Have your will and any trusts reviewed by a legal professional as soon as your divorce is final. Prepare advance directives, such as a durable power of attorney, living will, and health care proxy. Your CFP® Professional can help you update your beneficiary designations on all of your accounts. This is important for everyone at any time, regardless of age.
#8
Plan for Future Care!
Avoid high credit card finance charges by paying off the balances each month, or if you must carry a balance, use only cards offering low-interest rates beyond the introductory period.
#9
Build A College Fund!
College tuition, at a public or private institution, continues to rise. So, relying on your children to receive scholarships or financial aid may not be the most practical strategy. Look into opening a 529 college savings plan or other college planning account as soon as possible to begin saving for your child’s education. If your children are in middle school or high school, it is time to determine, with the help of your financial planner how you will cover this expense.
#7
Review Your Insurance Needs.
Periodically review your risk management program. Your life, health, and disability income insurance needs will likely change as you progress through various life stages.
#10
Set Long-Term Financial Goals
Establish one-, three-, five- and 10-year goals. Evaluate your progress yearly and make adjustments, as appropriate, to achieve long-term success.
Melissa Ellis earned her M.S. degree in Personal Financial Planning from the University of Missouri – Columbia. She is a fee-only Certified Financial Planner™ Professional, Certified Divorce Financial Analyst™, and founder of Sapphire Wealth Planning LLC and Sapphire Divorce Solutions LLC. Melissa enjoys helping women make sense of their finances when faced with a major transition in life such as divorce, widowhood, career transition or becoming an empty nester.