Ten Financial Tips Every Woman Should Follow

Don't let what happened to Mary Beth and Caroline in Another Life happen to you!  Here are some tips to help.

1.  Get credit in your own name

Without credit, you can't get a phone, open a bank account or apply for a mortgage.  Open a credit card in your name only and/or put your name as primary payer on a utility, and/or open your own bank account.

2.  Put money away for emergencies

If your budget is too tight to save, here are some ways to free up some cash:

• Instead of buying lunch every day, bring a sack lunch from home.  Put the money you would have spent into a savings account.  Since you opened your own account (see #1) put your savings there.
• Do the same with coffee or tea.  Splurge once a week on a latte or mocha or chai.  The rest of the week, brew your own and bank the savings.
• Take the bus or train to work instead of parking, and bank the savings 

It's a good idea to keep three months' income in a savings account for emergencies.  Once you have enough saved, save more.  Transfer the money into a CD or treasury bill that earns higher interest.

3.  Pay yourself first

Put money into your savings before you pay the bills,  If you don't, you may never get around to saving.  Use automatic deductions to ensure you pay yourself first.

4.  Open a line of credit

Don't use it, but if you must, pay it back as quickly as you can (see #5).

5.  Make loan payments early

If that first loan payment is due on the 30th, pay it one month ahead on the first of the previous month.  You'll save a great deal of money.

6.  If possible, pay extra on your monthly payments

Check to make sure the bank credits the extra amount to principal, not interest.

7.  Open a Roth IRA

The interest earned on a Roth IRA is tax-free.

8.  Contribute to your 401-K

Have the money automatically taken from your pay check.  When you get a raise, increase the amount of money taken out by the amount of the raise.  That way you won't even miss it.

9.  Get the best health insurance you can afford and get disability insurance

Protect your income.  Give your dependents protection in case something happens to you.

10.  Always read legal documents carefully before signing.  

If you don't understand, ask.  Your banker or attorney will think you're smart for asking.