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YahooIf you are a single girl living in the city, you need money to have a good social life, and live in a decent neighborhood. I live in fabulous Los Angeles and here, even the slums are expensive. I know because I checked them out. And, no I am not kidding. Here a 1-bedroom apartment in a decent neighborhood goes for $1200 or more.
So as a matter of survival, you need a job that pays you enough to afford that apartment and a few of the luxuries of life. After all, a girl’s gotta shop, and hang out with her friends.
Before you can invest your money, you need money to invest. And in a big city it’s hard to accumulate money because of the many expenses you incur in your daily life. Manicures, pedicures, facials, waxing, toiletries--these are some of the things essential to women that men don’t need.
There are a lot of financial advice books and columns about how you should give up your daily frappuccino and muffin, and cut out other luxuries in your life to accumulate a nest egg. My view is that while I could make coffee at home, I’m not going to meet Mr. Right there. To meet Mr. Right, I need to be out and about.
As far as I am concerned, one of the advantages of having money is spending it! This is not to say that you should indulge your every whim, but you should definitely indulge some of them. But to do this you need to have money. I am an advocate of living within your means. You shouldn’t spend money you don’t have. But why can’t you have a lot of money vs. a little money?
There are three things you can do to take care of your financial future.
Learn to ask for a raise or promotion. The number one way for you to take care of your financial future is your job. Most of us do have a job, and it’s our primary source of income. Regardless of what your performance is on your job, you are doing a job that you are being paid for. Unless you are extremely fortunate and have an amazing manager who will look out for your best interests, your company policy is to lowball you. Most people get raises of only 2 - 4% a year!
Learn to ask for a raise or promotion. The first time I asked for a raise, I felt very, very nervous and embarrassed. But I can tell you that I got over that quickly. It passes. Like with anything else in life, the first time you do anything is the hardest. Each successive time you ask for a raise, it gets easier.
Ask for a raise more than once a year. This may seem obvious, but you would be surprised how many people simply don’t, and then they struggle by on the pittance they make. Once your employer offers you a raise, try negotiating for a larger one.
Your 401K plan. The second most important thing you can do to take care of yourself financially is to contribute to your 401K plan. Most companies will match a percentage of what you contribute. This is free money that you are giving up when you don’t contribute. Just do it. Sign up for your company 401K, and get the match, whatever it is. When you leave your job, rollover your 401K into an IRA to avoid taxes on an early distribution.
Emergency fund. The third thing you can do to take care of your financial future is to build an emergency fund. Automatically pay yourself from every paycheck. Many companies will do this for you--take advantage of this benefit. Jobs come and go, but your rent comes around every month with tedious regularity. There will be times when you may not have a job. Make sure you have an emergency fund to see you through tough times.
Do these three things mentioned above and your financial present and future will be secure. Don’t be afraid of your finances. They aren’t any more complicated than anything else in your life.
