Are you a woman between the ages of 25 and 39? If so, you’re part of the millennial generation and are currently amid the most crucial part of your career and you need to begin to make serious money moves.
Whether you’re in your twenties or late thirties, it’s imperative to think about long-term financial goals. What are the essential money-related considerations for women your age?
The main priority is to have a detailed, comprehensive financial plan in place. If you have already accomplished this goal, check out four other essential monetary health and wealth components for millennial working women.
#1: Make a Comprehensive Financial Plan
If you don’t have a detailed money plan in place, consider hiring a for-fee CFP (certified financial planner) to create one. The cost for services is reasonable, and you can often get everything done in one consultation session.
There’s no substitute for this kind of planning. A professional can show you how to rein in monthly expenses, maximize investment opportunities, plan for retirement, and build an emergency fund.
#2: Lower Monthly Expenses
Lowering monthly spending is one of those things in the easier said than done category. Most professional women have already done as much budget modification as reasonably possible.
However, many tend to overlook the opportunity to refinance their student loans. You can make a big dent in cash outflow by refinancing all your education loans into a single obligation by working with a private lender.
Not only can you have the chance for better terms and more favorable rates, but you can use a simple student loan calculator to see the amount of the new, consolidated loan payment.
#3: Get Serious About Retirement
To make sure you are ready for retirement you’ll have to understand how to get ready in the first place. There are two kinds of retirement planning: active and passive.
Aim to actively manage your retirement, even if a financial expert has already helped you set up a plan. If your income allows, contribute the maximum legal amount to the fund, check returns regularly, and consider speaking with a CPA (certified public accountant) to develop other techniques for bolstering the size of your retirement nest egg.
#4: Make a Will
Don’t be tempted by those online ads to write your own will. While they’re legally sound, they are far inferior to hiring a lawyer to do the job for you.
Unless you have a vast, high-end estate, a lawyer can help you complete a simple, legally binding will in about 30 minutes. Fees are minimal, and you’ll get the peace of mind that comes with having a solid, enforceable will on file.
#5: Decide Whether You Need Life Insurance
You’ll hear all sorts of advice about life insurance, but it’s hard to separate the good from the bad. In truth, not everyone needs a policy. Suppose you have no intention of leaving money to anyone, have no children, don’t wish to support a charitable cause after you die, or can’t afford policy premiums. In that case, life insurance is probably not a wise choice.
However, it’s important to remember that premiums for term coverage are pretty low. You can usually get a large amount of coverage for a small monthly price.
Many people purchase term policies to set up scholarship funds in their name. Or they leave a modest sum to close friends or make a one-time donation to a favorite church.