I’ve always been a worrier when it comes to money.
you’ve got the option to, too.
SELF talked to women in their 20s, 30s and 40s about their money concerns.
You may be struggling to stretch a meager salary, but the picture isn’t all bleak.
Twentysome-things wield a financial weapon their fortysomething bosses lack: time.
Save even a minuscule amount of money now and it will grow exponentially in the decades to come.
It’s also wise to chip away at debt and boost your earning potential.
We’ve got some ideas:
Goal 1Start an SOS fund.
Saving may seem impossible, especially if you’re living paycheck to paycheck.
To be safe, aim to stash away three months of living expenses.
Of course, you don’t need to return to the nest to build your nest egg.
Instead, transfer whatever you’ve got the option to afford into an online savings account each month.
(Go toBankRate.comfor the best deals.)
Add extra cash to your reserve fund by throwing singles in a tin at the end of each day.
Toss the kitty in the bank when it’s full, then watch your sense of security grow.
Like the majority of women in their 20s, Dufner finished college with a big fat I.O.
“I owed $28,000,” she says.
The same applies to loans.
Goal 3Pump up your paycheck.
“I figured my starting salary was set in stone,” Dufner says.
To be an ace negotiator, give three reasons why you’re worth more than average.
Be savings smartPut $25 per paycheck into a bank account earning 4.6 percent interest.
In five years, you’ll have earned $3,316 after taxes to put toward your SOS fund.
says the Maplewood, New Jersey, mother of three.
Knowing where your dollars go is key to stopping the black hole syndrome.
Then stay on track with the online tools atMvelopes.comorBetterBudgeting.com.
Goal 1Plan for retirement.
That means putting 12 percent of your salary in your 401(k).
Goal 2Buy a home.
(Try the How Much House Can You Afford?calculator atBankRate.com.)
(For info, seeSavingForCollege.com.)
Be savings smartPut $4,000 a year in an IRA earning 8 percent.
If you start at 30, by age 65 you’ll have $736,994.
(The Levins have 5-year-old twins.)
Goal 2Live on one salary.
Couples are relying on two paychecks to cover essentials, leaving themselves vulnerable if one income disappears.
In flush years, we allow for more splurges; in lean times, we cut out extras.
Goal 3Pay off your home.
As a result, the Federal Reserve estimates that mortgage debt has grown nearly 75 percent in five years.
Ideally, you’ll want to withdraw no more than 5 percent of your retirement savings each year.
Photo Credit: Terry Doyle
