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| My dream retirement on an island somewhere |
“I have no idea what assets we have. My husband always handled all our money.” I’ve heard this statement over and over again from female friends and relatives who have been recently divorced or widowed. I was amazed at the lack of knowledge until I realized I was the same. It wasn’t for lack of trying on my husband’s part. “Pam, come over here and let’s go over our investment portfolio,” he’d say. Snooze. “I’ll get to it in a minute,” I’d reply, but the minute never came. IRAs, insurance funds, whatever, I had no interest in going over them until one day when a family friend, not much older than ourselves, had a heart attack, leaving behind his wife and two small children. I made up my mind to be prepared in case of the worst.
Did you know, according to a 2012 Hearts and Wallet Survey, 49% of women say they are “very inexperienced” with investing , while 42% of women say they are “very uncomfortable” taking on investment risk? In case there is anyone else, like me, who needs some help getting started in the world of finance, I’ve collected these tips.
1. Become Investment Savvy.
Take a trip to the local library and check their selection of books related to investing. Check out a few and read them. Trust me; there are some entertaining ones available. Read investment articles online. Most importantly, don’t be afraid to get financial advice from a professional.
2. Write Down Financial Goals.
After doing some research and becoming investment savvy, it’s important to decide future goals. I tell my children my goal is to have a retirement home in Costa Rica, spoiling my grandchildren during the summers and then sending them home. In reality, I have written down goals like “paying off the mortgage on our home.”
3. Try to Invest Some Money Each Month.
I know, with kids, bills and unexpected expenses, it seems that many times the money runs out before the month does. Decide how much money you can reasonably live without-even if it’s only five or ten dollars-and set it aside for investment purposes.
4. Diversify your portfolio.
We’ve all heard the saying, “Don’t put all your eggs in one basket.” The same goes for money. It’s better to have it spread out in several funds than in one in case that fund goes kaput, taking all my hard earned money down with it.
5. Practice Investment Strategies before investing.
Some companies offer self- study courses to learn to trade online and allow people to set up a free demo account to practice investing.
The bottom line is it never hurts to be prepared. It’s better to learn about finances in advance than be caught off guard during a crisis when no one feels like dealing with these issues. How have you prepared for the financial future? What are your best tips?
My husband has been talking about investing with me lately so this is a very timely post for me. Thank you for the great tips! I need all the help I can get 🙂
great tips; goals always keep me on my toes and in budget… thanks for sharing some great tips.
Great tips. I like having goals!
Smart tips, thanks for sharing! Saving money each month certainly is the more difficult one to achieve.
Very wise posts were made in this article. It is wise to have goals
Great tips. Thanks for sharing
I really should invest. I have the bulk of my money in savings which is stupid because it earns peanuts!
These are such good tips
My goal for the financial future is to save money that I can invest in additional property to generate additional revenue streams. I’m trying to get there just by building my business so I can earn/save more. Good article!
need money to invest, LOL….can you tell me how to do that? hahaha
I would love to set up a free demo account for my KIDS to learn about investing! I will have to see if they offer that!
These are great tips! Every woman should know how to handle the finances.
I would love to learn more about investing. I’ve been saying that for years!
Great tips! lately I have been really focusing on saving money. What I started to do is at the end of every day put any change I have into a jar. In the last 3 months I have saved over $100!