A financial planner can help in building a handsome corpus while cracking your first job is a significant milestone in life. But as with anything else, there are particular challenges you face as a new career woman. Learning to manage your money falls within those challenges. Thus, this article will serve as enlightening tips for a new career woman.
MAKING MONEY DECISIONS WITHOUT PRIOR EXPERIENCE
Making decisions can be very stressful, sometimes. Your primary source of income is your salary which may not be enough to cover your needs. To make matters worse, if you are a woman who wants to have a family someday, there are added expenses. Your priority should be to invest in the future and accumulate money for an emergency fund. Hence, take help from a financial planner can be beneficial
TRACK YOUR EXPENSES WISELY WITH A FINANCIAL PLANNER
You might have a good salary, but spending most of it on unnecessary expenses would ruin your financial health. Keeping track of your expenses and finding ways to cut them can help you save for the future. You can refer to apps available on Android or iPhone devices that can help you track your expenses and manage your accounts. Also, hiring a financial planner can assist you to cautiously managing your funds.
SETTING UP A BUDGET
It’s essential to follow a budget to know how much you’re spending and how much you’re saving. Keep a tab of your spending and see where you can cut back so you don’t overspend on unnecessary things. You should also create a monthly budget that will help you set aside money for future expenses like buying a house or going back to school. You can either use a handwritten or online budgeting tool to help you keep track of all your income and expenses.
ENTERING THE REAL WORLD OF INVESTMENTS
Investing is a complicated concept and can be overwhelming at first. But you need to learn the basics of investing, especially if you want to build a good portfolio. You need to open multiple accounts for retirement, your emergency fund and savings, and a brokerage account. There you can purchase various stocks or invest in mutual funds. Also, diversify your portfolio to reduce the risk of losing all your money. There are plenty of good investment planners in the finance market with a proven track record who can unblock the investment jargon.
LEARNING INVESTMENT TERMS AND PICKING A FINANCIAL PLANNER
When investing, you must learn the basics of investing terms to know the difference between things like a margin account, return of capital, capital gains, and dividends. It’s also essential to pick a reputable financial advisor who knows what they’re doing. And most importantly, when looking for one, make sure your prospective advisor is properly licensed to provide financial advice in your country or state where they are located.
LEARN THE IMPORTANCE OF MUTUAL FUNDS FROM FINANCIAL PLANNER
Mutual Funds are undeniably the most common type of investment vehicle used by most young women who just started their careers. It provides excellent liquidity where you can cash out your investment at any time. It also enables you with the flexibility to choose from a wide range of funds which can minimize risk and maximize returns depending on your financial goals. Most importantly, it is effortless to understand where you only need to invest in one fund and diversify your portfolio for free.
TAKE ADVANTAGE OF COMPANY BENEFITS LIKE HEALTH INSURANCE
It is essential for young women who just started their careers to take advantage of company benefits like health insurance. Health insurance will protect you if you get sick or injured by providing free medical consultation, treatment, and prescription drugs. It will also pay for hospital charges incurred by you and your family. It’s important to contribute some of the monthly premiums. But medical expenses incur a huge budget involvement.
GETTING A LIFE INSURANCE POLICY
Aside from health insurance, life insurance is another important benefit that women should take advantage of, especially if they have dependents like young children or a sick partner who depends on them financially. Getting a good life insurance policy can protect your family’s future by providing financial security if something happens to you. It will ensure that your children have enough money for their education and pay for other living expenses, so they don’t have to worry about being financially insecure in the future. Therefore goal-oriented financial planners always advise getting our life insured to meet future challenges.
Your income and expenses are the first steps to becoming a financially responsible woman. It would be further helpful if you learned about investments. Thus hiring a financial planner to diversify your portfolio and maximize returns properly can be prudent. Implementing the tips mentioned above will give you a good start in becoming financially responsible and achieving your financial goals without worrying about not having enough money to support yourself and your family.