5 Money Habits of Highly Successful Young Women

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We're constantly reading checklists and money steps for newlyweds, new parents and age groups as a whole, but what about the ladies? If you're a powerhouse of a woman (or looking to become one), read on for some financial habits that are imperative for you to maintain on your road to success.

1. Knowing Where Your Money Is Going -- and Coming From

Whether you're a full-time employee or self-employed, it's impossible to create or build a plan around your finances if you don't know what's happening with your money first. Use a website like Mint, You Need a Budget, or Manilla as a starting point for tracking your money and build a spending plan. If you're on a variable income, it's even more important for you to get a handle on things. Once you're synced up, you're going to see the areas in which you're over- (or under-) spending and where you need to make adjustments. Take note on what's going towards saving for your future self and how much is going towards debt pay down.

2. Saving Routinely –- Set it and Forget it

Since women are known to live longer than men on an average basis – it's even more important to build up an adequate cushion for those extra years. Saving on an ongoing, automatic basis sets you on a direct path to a healthy financial future. And not only are you training yourself to treat your savings like a bill payment, but you're also taking advantage of compound growth along the way. If you're using your savings account to fund your lifestyle when your checking account balance gets low, or throwing money aside "if" you have some left over, break those habits. Start saving routinely for emergency funds, retirement, and future goals.

3. Using Credit Wisely

Knowledge is power when it comes to the difference between good debt and bad debt. Student loans and mortgages are typically on the good end, while credit card and other consumer debt are on the bad end. Saving money into a "splurge" account to use instead of whipping out the plastic for impulse purchases is a great way to curb credit card use. Get into the habit of checking your credit score annually and being responsible by paying balances off in full each month or more than the minimum due to save interest build-up and reduce stress.

4. Knowing When to Say Yes and No

Saying no to items that can derail your financial plan, like last-minute vacations, dining out and impulse purchases. I'm not saying you can't do these things. Savvy ladies just have a plan for these expenses. Say yes to career and educational experiences that add to your value and ability to earn an income. Women still earn less than men, on average. Your most valuable asset as a young professional is your ability to earn an income (human capital). Taking continuing education classes, reading personal development books, seeking out a mentor and staying current on trends and developments within your industry will enhance your earning power and ability to save.

5. Having Protection

As a powerhouse young woman, having the right kinds of protection in place will guard you against potential future income loss. Check on your disability, life, health, auto and home or renters insurance annually or when there are changes to your situation. Ensure you understand coverages, premiums and deductibles. Disability insurance is a big one. If something happened to you, taking you out of the workforce for an extended period, what would you live off of? Is your income protected? Also, having an estate plan in place if you're over the age of 18 is just plain smart. Get a will and powers of attorney in case something happened to you. Communicate with those you designate powers to and make sure your wishes are documented. This habit makes it easier for you –- and your family and friends as well.

Mary Beth Storjohann is a certified financial planner and the founder and CEO of Workable Wealth.

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jenniferetmfs

One thing that will really help is to pay off debts, especially things like mortgages, car payments, students loans... At http://www.mutualfundstore.com/financial-obligations-debt you can learn how debts will impact your financial health when you are getting closer to retirement. Hopefully by then, you will be out from under a lot of debt so that you won't have to worry. Once those payments are gone, save that money.

May 15 2014 at 1:14 AM Report abuse rate up rate down Reply
brian.henry32

I suspect that habits of successful women with money are the same as habits of successful men with money too. After realizing that I was way behind on my retirement savings late last year, I decided to make some big changes to my finances to put myself and my family on track. These were the keys (for me) to improve my situation, and start to to build a real retirement nest egg.
1. I save money weekly to a Roth IRA. I invest in low cost Vanguard mutual funds, with a 70/30 mix equities to bonds.

2. I have a wife and two beautiful kids, and I want them safe if something happens to me. I regret to say that previously said advisor sold me a whole life insurance policy about 4 years ago that I have been paying $330 a month for. After some research, and watching shows like Suzey Orman I decided that I would be better off cashing it in (what a waste) for some Term. I got the same coverage from a policy at LifeAnt for $27 a month, and I save the difference to my 401k at work (and get a 4% match.) If you haven't heard of buying term and saving the difference watch Dave Ramsey sometime its pretty amazing and he recommends it on every show.

All I know is that I want the freedom to work a lot less when I get to my golden years and I do not want to rely on Social Security or be a burden to my kids. Luckily I think that I still have enough time to make a push.

May 03 2014 at 11:27 PM Report abuse rate up rate down Reply
akavw

TAKE WHAT PEOPLE DO BY BEING so professional and don't give out any smak jack eccept by those inquisitive that's what count's in... inorder and by law. consider opposite isn't any proof just ordinary not original if otherwise it will be too little and absurd to actualy think of it
comply and deliver serve with a smile...

May 01 2014 at 6:01 PM Report abuse rate up rate down Reply
akavw

the crack of dawn as when the ship comes in to dock and the men jump off one by one to the ship side tarmac beating to the waters edge off shore starting a journey into what is caught
eels would crawl off the horses skull reddened in glory and liberty from the salt waters tyranny... GENERALISIMO to the BERTOLD BRECHT CHIN CHIN THIS IS LOVE
33

May 01 2014 at 5:49 PM Report abuse +1 rate up rate down Reply
captain.supermoney

The best thing a woman (anyone really) can do for their finances is be aware of their situation. Where does your debt stand? Your savings? Your retirement fund? Do you have an emergency fund? Asking yourself these questions and knowing their answers is a major step to financial success. ~Brenda from SuperMoney.com.

May 01 2014 at 5:29 PM Report abuse -1 rate up rate down Reply
Valerie

I stopped reading at the point where this writer labeled student loans as "good debt".

There is no such thing as "good debt". Debt in any form = slavery.

I don't know at what point it became socially acceptable for young adults to start off their working lives burdened with a mountain of student debt. But, the idea that this situation is okay is insane.

May 01 2014 at 1:34 PM Report abuse rate up rate down Reply
3 replies to Valerie's comment
richardjmatukoni

Yeah & it helps to have mate who pays for the dinners etc.

May 01 2014 at 1:08 PM Report abuse rate up rate down Reply