If you’re highly interested in getting your finances to work for you, continue reading to discover a list of finance tips which are specifically designed for women who are interested in retiring early.
Finance Tips for Women:
1. Don’t be afraid to ask for a raise or to negotiate your salary
Studies show that the average woman is far less likely to ask for a raise or to negotiate their salary, than the average man, due to differences in upbringing. However, as you deserve to get paid what you’re worth, never be afraid to ask for a raise or to negotiate your salary, if you truly believe that you’re not currently getting fairly compensated for the work which you’re putting into your job.
It’s well worth trying to get an increase in your salary as even a 5% raise will equate to tens of thousands or dollars within a few short years. Money which you can save or invest and which could earn you compound interest or dividends.
2. Make sure that you save and invest as much money as you spend on luxury goods
In this case the term luxury goods refers to items which you want but don’t need, not designer handbags or shoes. There’es nothing wrong with splashing out on purchasing a new smartphone or watch as long as you’re able and willing to save or invest the same amount of money and still purchase the item which you’re longing to buy.
3. Don’t let others make financial decisions for you
It’s well worth conducting your own research before making important financial decisions so that you can make the best possible use of your disposable income. Whatever you do, don’t make the mistake of letting others such as a partner or father make your financial decisions for you. As no one knows your financial goals as well as you do.
4. Make sure that you have an investment portfolio
While saving is important, if you want to be able to retire young, it’s well worth starting and managing your own investment portfolio in order to increase your passive income. Which is money which you earn automatically, even if you’re sleeping or on vacation in Waikiki.
If you’re scared about losing money, make sure to diversify your portfolio and to purchase ETF shares which are comprised of shares in lots of different companies in the same industry as well as traditional shares and private equity.
5. Sign up for dividend reinvestment schemes
A dividend reinvestment scheme allows you to opt to be given extra shares in a company at a discounted strike rate, instead of annual or biannual dividends. As the strike rate a company produces will always be significantly lower than the market price of a share, it’s a great idea to opt into a dividend reinvestment scheme. However, keep in mind that not all company’s offer dividend reinvestment schemes.
If you heed the advice shared above, you should be able to take control of your finances and to ensure that you’ll be able to retire early!