What is financial independence? Financial independence means having enough income to pay your living expenses for the rest of your life without having to work full time. For most people, that may sound like a dream, but with the right mindset and actions to match it, it's definitely achievable in a realistic time frame. In this article I'm going to outline 8 actionable tips you as a woman can use to become financially independent through proper saving, investing, and behavior towards money. Enjoy!
1. Make a conscious effort to take charge of your own retirement planning. Don’t leave it to chance. Start saving for retirement. No excuses.
2. Get knowledgeable about finances. You don’t need to become a Wall Street wizard, but with a little education you can make more informed choices. Investing a few hours learning the basics can pay big dividends in knowledge today, and financial security tomorrow.
3. Make maximum contributions to qualified retirement plans through work and IRAs on your own.
4. Be proactive about managing your finances while you're single. As soon as you begin working and supporting yourself, take charge of your own future, so you’ll be more fiscally prepared.
5. Take an active part in your household’s finances if you get married. Make sure your marriage is a partnership when it comes to making important financial decisions.
6. If you’re married, discuss the critical differences between joint and single life pension and annuity benefits. Under a single life option, when a spouse dies, the benefits die with them. It’s also smart to make sure your estate plans are up to date to protect your surviving spouse.
7. Look before you leap when changing jobs. Don’t go solely for a bigger paycheck; make sure you won’t lose retirement benefits. Also, you may want to think twice before retiring early before your benefits are maxed out.
8. Become financially aggressive. Historically, women have tended to be conservative with money. While this is changing, many women still tend to focus too much on protecting principal than on achieving solid returns.
