Managing money can be a challenge, especially for women who often face financial disparities in the workplace and at home. However, with the right approach and a commitment to taking action, women can take control of their finances and build a healthy financial future. In this blog, we'll explore five steps women can take to achieve financial health.
1.Create a budget: The first step to managing your money is to create a budget. This will help you keep track of your income and expenses, and identify areas where you can cut back and save. There are many free budgeting tools available online, or you can create a budget using a spreadsheet or paper and pen. Janice Brodin Emrich, CLF®, one of our very own members of the HoodFit community is a Financial Advisor with Northwestern Mutual and suggests trying to stick to the 60/20/20 rule as closely as you can: 60% of your income should go toward your fixed and essential expenses, 20% toward your saving and investing goals, and the last 20% can be set aside for your discretionary spending.
2.Start saving: Saving money is an essential part of building financial health, and it's never too late to start. Aim to save at least 20% of your income each month, and consider setting up automatic transfers from your checking account to your savings account to make it easier to save. Janice coaches her clients to stick to the “set it and forget it” rule when it comes to building the right savings habits.
3.Pay off debt: High levels of debt can be a burden on your finances, and paying it off is one of the best things you can do for your financial health. Focus on paying off high-interest debt first, such as credit card balances, and make a plan to pay off the rest of your debt as quickly as possible.
4.Invest for the future: Investing your money is a great way to build wealth over time, and there are many options to choose from, including stocks, bonds, and real estate. Consider working with a financial advisor to help you create a customized investment plan that is right for you.
5.Educate yourself: Education is key when it comes to managing your money, and there are many resources available to help you learn more about finance and investing. Read books, attend seminars, and talk to a financial advisor to help you make informed decisions about your finances.
Financial health is an ongoing journey, and it's important to be patient and persistent as you work to achieve it. Remember, you don't need to be an expert to make smart financial decisions – by taking small steps and seeking out the right information and support, you can take control of your finances and build a secure financial future.
Feel free to reach out to our very own member, Janice Brodin Emrich, CLF® if you would like a second opinion on your financial journey. Janice creates customized financial plans for her clients and is offering our members a free consultation if you’d like to audit your own financial plan and goals to see what opportunities you may have to protect and grow your wealth overtime.
Hiring a financial advisor is similar to hiring a personal trainer. It doesn’t mean you don’t know how to work out on your own, but the extra accountability can sure help you reach your true potential with the help of a professional.
Contact info: janice.brodin.emrich@nm.com | www.janicebrodinemrich.nm.com | 818-610-7034 Direct Office Line
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries, including Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance), Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), a registered investment adviser, broker-dealer, and member of FINRA and SIPC, and Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and trust services), a federal savings bank. NM and its subsidiaries are in Milwaukee, WI. Janice Brodin Emrich, CLF® is an Insurance Agent of NM and NLTC, a Registered Representative of NMIS, and an Advisor of NMWMC. There may be instances when this agent represents companies in addition to NM or its subsidiaries.
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