5 Things Women Should Know About Their Finances

Good morning Women Supporting Women,

Happy Monday to you all!  I hope you had a great weekend.  This was such a blessed weekend for me.  I came to the DMV area to mix business with pleasure.  I had the opportunity to work with some of my clients, while hand delivering their policies.  In addition to this, I flew to North Carolina to attend a wedding.  It was such an honor to connect with clients and see my family in the process.  I had a blast!

Last week, we went over the IRA answers to the contest. This week, we will take a look at 5 Things Women Should Know About Their Finances.  It is important that we understand what we could do now that will help us have a financially secure future.

What Should We Know

 1.  Maximize your tax credits

Each year, the deductible amount you can contribute to a retirement account is increased for inflation, and there are catch-up contributions for those age 50 or over.

a. You can receive up to $2,000 tax credit (in 2018) for each of your qualifying children, in addition to each dependent’s personal exemption. Don’t forget to take this credit—it’s like receiving money tax-free in your pocket, as long as your income doesn’t exceed the limitations.

b. The child and dependent care credit will cover up to $3,000 of qualifying expenses if you pay a babysitter or day care center so you can work or go to school.

2.  Become a S.M.A.R.T. Spender:

Set S.M.A.R.T. Financial Goals (Specific, Measurable, Achievable, Realistic, and Time bound) and create a spending plan in four steps:

a. List your income b. Compare your income and expenses c. List your expenses

d. List your resources and set priorities

3.  Develop a savvy investment strategy:

Finding the right mix of investments depends on your available assets, financial goals, time horizon, and tolerance for risk. It is important to ensure a balance between three things: liquidity, return, and risk. Start systematically investing as soon as you are able so that a reasonable amount is saved, even after just a few years. The compounding effect can help to speed up your savings.

4.  Know your credit score:

Based on the factors below, you are assigned a credit score between 300 (low) and 850   (outstanding). Here are the main areas in which you are graded and given credit scores, and the approximate weight that each area is given:

a.  Payment history: 35% Outstanding , b. Debt: 30%, c. Credit history: 15%, d. New credit and types of credit: 20%

5.  You are your most important asset:

For most people, human capital is the missing piece of their portfolio. You insure your car, In case you get into an accident. You insure your belongings, in case they’re lost or stolen. Believe it or not, your biggest asset is the ability to get up every day and provide for your family, whether by working or being the primary caregiver. How do you insure your biggest asset? Through life insurance and other life protecting vehicles.

If you have any questions, please feel free to post your questions here or reach out to me via email at: thefinancialcomforter@gmail.com

Next Up: Five Things About Single Parenthood – The cost of being a single Mother

Have a beautiful and blessed week!

Marsha

Changing the lives in our community….one family at a time

 

3 thoughts on “5 Things Women Should Know About Their Finances

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