Sunday, March 3, 2013

a little saving up (change 9)

It's absolutely essential that every woman have a little bit of savings of her own...Having spent the last 20 years working as an investor relations specialist I have been lucky to acquire a bit of education on saving money, investing and understanding how markets work. Many women, regrettably, still lag in understanding some basic facts about saving money and investing. Either their partner looks after it, or they are daunted by the myriad of information (some of it often conflicting) out there and it all sometimes becomes daunting. Though I have seen this change over the past 20 years I still come across women who have no idea how money can work for them. For reasons I will go into at another time, one of the kindest things you can do for yourself is to save one year of your salary or what it costs you to cover your necessary daily expenditures for a year, and have that amount on hand in a high interest savings account.

It used to be accepted that three months was enough; however, nowadays finding work can take a lot longer than three months. Start slowly, even just $10 a month if that is all you can afford - whatever you can squirrel away is a good thing, build it up. Maybe give up one latte a day or something that you really, honestly don't need to buy and put a bit of money away. The rewards will be priceless:

~ funds to sustain you for a year should you lose your job or be unable to work for health reasons
~ you will lower your work stress because if you find yourself in a work situation that you despise or that is truly untenable for you - you can leave and have time to restock your energies and sanity
~ you will gain personal power
~ saving will become a habit and as your account grows so will your confidence in learning more about money

Financial freedom is extremely powerful - you can start slowly, a few dollars at a time and I promise you as your nest egg builds up your confidence will blossom.