USA Today Personal Finance - Top 10 Financial Mistakes Women Should Avoid

 

How to Avoid in 2018 the Top Financial Mistakes Women Make by Top

Woman Advocate, Entrepreneur & Founder of Wealth Management Company

 

Women want to get ahead, but often shoot themselves in the foot financially.  With the recent conversation on tax reform it seems appropriate timing to share some of the top financial mistakes women tend to make.

Loreen Gilbert, president of www.wealthwisefinancial.com  serves on the Executive Board of National Association of Women Business Owners (NAWBO), representing more than 13 million women business owners in the US. Gilbert is also the Chair Elect of the NAWBO Institute which provides resources and tools to women business owners around the globe.  She works tirelessly to help women avoid mistakes she’s seen others experience. 

 

“I started out with modest beginnings and experienced setbacks in life but learned from them, experienced success and wanted to share with other women in the US and around the globe,” said Loreen Gilbert, president of WealthWise Financial Services.  “The timing seemed right to share these commonsense tips.”

 

1. Waiting to buy a house or condo until you get married.  Instead, focus on saving for a down payment and buying a house or condo on your own.  You can always rent it out if you get married or you can sell it to buy another place.

 

2. Spending more on personal care than you can afford, labeling it as a necessity rather than a want.  These expenses include nails, hair, clothes, cosmetics, massages, eyelashes, etc.  I suggest monitoring how much you spend on these discretionary items and making sure you are saving as much money on your retirement as you are spending on personal care.  

 

3. Keeping too much cash vs. investing it wisely.  Everyone needs an emergency savings account.  However, women tend to keep too much in cash which will not outperform inflation.  Make sure your money is working for you by investing excess cash into investments that can beat inflation.

 

4. Not saving enough for retirement.  Statistics show that women tend to live longer than men and yet on average, earn less than men and save less for retirement than men.  So, if you are not saving at least 15% of your income for retirement, consider how to get to that goal.

 

5. Waiting too long to change your lifestyle following a divorce.  Too many women focus on staying in the house they love and spending what they used to when they were married, instead of focusing on what they can afford and what makes financial sense regarding their housing.

 

6.  Not being comfortable with short-term volatility in the markets vs understanding the long-term benefits of being in the markets.   No one likes seeing a statement with their assets going down, but there is a difference between short-term volatility and a permanent loss.  Women tend to be more conservative when investing and that can be detrimental to their lifetime earning potential.

 

7. Starting a business with no cash flow analysis, funding plans or financial planning.  Many women want to start their own business.  However, make sure you have a conservative cash flow analysis, a plan for funding the business and have done financial planning before you hang a shingle.

 

8. Not having a consistent work history in order to qualify for and maximize Social Security benefits.  More women than men take breaks in their career for maternity leave, raising kids and taking care of family members.  Those breaks have a significant impact on Social Security benefits.  Make sure you are tracking your Social Security benefits and if you are taking breaks from your career, consider how you are going to make up that benefit.

 

9. Relying too heavily on a spouse to provide for your financial future.  While it might sound good to have a man take care of you financially, the reality is that it is a risky proposition to rely on anyone else to take care of you financially.  Every week I hear stories of women who have been shocked by their spouse filing for divorce after decades of marriage.  

 

10. Not leveraging personal relationships to advance your personal wealth.  Men are more comfortable talking about money matters to other men.  And in talking about money matters, they find out about wealth building opportunities.  Women, learn from the men how to leverage relationships to build your wealth.