In July's article I gave you the first top 5 financial mistakes women should try to avoid in their lives. Here are the last 5 in this month's article.
Financial mistakes to avoid.
6) Starting a business without sufficient financial planning. It's wonderful to think you can work for yourself and support your goals and dreams. But, if you haven't at least done a conservative cash flow analysis on your finances, and what it is going to take to keep you going, you may already be doomed for failure. Don't spend money before you know if you have enough for the long haul.
7) Not having a consistent work history to maximize your Social Security benefit. In order to even get Social Security, you need to have been in the workforce for at least 10 years, which equates to 40 quarters, that is the minimum. Many women take off an average of 11 years to raise their family. That hurts in more ways than one. You are not earning any benefit during this time, and studies have shown that when women go back into the workforce, her pay scale may have dropped because the required skill levels needed have changed. Be sure to sign up for "My Social Security account" on-line at www.ssa.gov to monitor your progress in obtaining the 10 years of work history you need to receive this benefit. If you don't, you may have a serious drop in your anticipated retirement income.
8) Relying too heavily on a spouse to provide for your future. This certainly was the case before 1946, the Traditionalist, and before 1964 with some Boomers, but times have changed. Women need to stop relying on others, especially the spouse to get them where they need to be. Women need to be self-sufficient, independent and successful, (SIS), in their financial endeavors if they are going to feel secure about the control they have over their financial future.
9) Delaying a change with your lifestyle after a divorce. If your life is about to make a drastic change because of a divorce, it is never to early to get a cash flow analysis done with a financial advisor. You need to know how much money you will be living on, and how much debt you will be responsible for, and that's just the beginning. But, it's what you need to do to get ready for your new future, the one you now have to control.
10) Not leveraging relationships to advance your personal wealth. Women tend to be less confident in making financial decisions, especially if those decisions have been done by someone else in their lives. Seek out help to get the answers you need on your financial life. Use every resource at your disposal to help you discover and build new wealth-building strategies. You will be that much further ahead in taking control over your financial life if you do this. Seek help and support.
Remember, I am here to help. If you would like to discuss this article, or any previous articles that have been on the blog, please be sure to join us the 3rd Saturday of each month. In August we will gather on the 18th. We will discuss how these topics affect your financial well-being by getting feedback from other women at these gatherings. You will feel more confident you have a better handle on your finances because of this interaction. I hope to see you ladies soon.