I rely on someone else for income.
I have a lack of savings.
An ‘emergency plan’ sounds foreign to me.
If you had answered ‘yes’ to any one of these questions, it is time to seriously consider your financial situation.
As women, we might ask, “Why is it important that we take control of our finances?
- Fact. If you’re already starting the 100-meter dash 10-meters behind, a lack of planning/training is not going to help your case.
- What happens to your finances after your husband is no longer around?
- As a single woman, be empowered with your finances.
- No one gets married thinking that they will get divorced, but the hard truth is: it is becoming more and more prevalent.
In short, we make less than men. At some point in our lives we will probably be on our own. Therefore we must not only understand our financial situation, we must make a plan.
1. Know your budget
It is imperative to know how much you are making vs. how much you are spending. If you make $5,000 a month, but you spend half your income on clothes and shoes, it is doubtful you have much to contribute to your savings; and furthermore, you may be running a deficit.
- A great tool to get your budget in order is Gail Vaz-Oxlade’s Interactive Budget Worksheet.
2. Start an investment account
Consider having an investment account. The bonus of investing, is that with the right strategy your savings will grow more rapidly than if your money was sitting in a simple savings account. Just like a garden, if you feed and nurture it, it will grow and provide for you.
3. Contribute to your investments
74% of Canadians with emergencies don't have enough savings. Be a part of the 26% who do have enough savings by being prepared. Open your investment account, and contribute regularly to it. We recommend setting up a monthly automatic contribution from your bank account. For more savings advice view our blog on savings tips.
4. Educate yourself
TFSA. RRSP. If these acronyms make no sense to you, you need to educate yourself on different types of investment vehicles. Contributing to registered accounts can be a great way to reduce your tax bill, and increase your wealth. Most securities (stocks, bonds, mutual funds etc.) can be placed inside registered accounts, and picking the right investments for you can help catapult your savings substantially.
5. Be prepared
What would happen if your husband, who might be the main income earner in your household, becomes ill and can no longer work? Would there be enough money to support you and your family? There are multiple things you can do to protect yourself including an investment plan, insurance and a job. We can’t help you with a job, but we can sure help you with the other two!