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Saturday, October 20, 2007

Women And Your Finances

Your finances don't have to be a problem and you don't need to be complacent and let your husband do all the finances. You have to know what's going on for your own self-preservation. Money is a subject too easily walked around. It's one of the top two problems in today's marriages. You need to know about your money and finances and even your credit score.

Money is sometimes avoided in hopes that you will find a rich, nice guy, a dream job, an unknown rich relative leaves you a bunch of money or you win a lottery. It's not going to happen. You have to sit down and examine where you are going with your money. Statistics show women born between 1946 and 1964 that have failed to save for retirement will have to work until they are 74. Who will keep you hired until you are 74? Will social security still be in place?

So maybe you did marry Mr. Right, but what if Mr. Right turns into Mr. Wrong but before you find about his subsequent name change, he financially ruins you. My friend Judy got divorced with nothing, not even a credit score. She might as well have been 18 years old again starting over. Her husband even took the shoes off her feet and made her leave. He makes $80,000 a year, she makes $6 an hour and he's suing her for child support. Her life was once picture perfect and she was all taken care of – or she thought. Now she lives on the brink of eviction. She didn't have money to contest the divorce, so he got everything – including his 401k.

Is your 401k starving? Most women have less than $10,000 in theirs. Maybe that's why 87% of the impoverished elderly are women. Most women say they can't afford to put any more into their 401k. Here's the trick. Always contribute to get your employer's 100% match. If they match up to 6%, then you have to get to 6% as soon as possible. The longer you wait, the more free money you are giving away. Then, each year, you need to up your contribution at least 1%. More if you are older. You will adjust to your net pay very quickly and never know the money is gone. Hard to believe, I know.

What to do? Keep your eye on the bottom line. Take baby steps to get there so you don't get overwhelmed, but keep abreast at least once a year where you are heading financially or face the consequences of trying to live on the dwindling social security benefits. Watch the family budget and total money spent. Review your money with your husband at least once a year. It's not a trust thing, just as a curiosity. Make sure your name is on some loans so you will have credit, but if they are on the loans, make sure they are paid. You can keep your financial security intact no matter what your future holds.


About the Author:

Stuart Simpson http://www.401k-review.com

Source: www.isnare.com