Starting Out & Single
On an entry-level salary, saving money is not always possible. But if you can put just a little away every month, time–investing’s most powerful ally–can make it worth the sacrifice.
Starting to save as early as possible may be more than advantageous, it could be a necessity. Women face unique financial challenges, and early planning makes it easier to compensate for these factors. What are these unique challenges?
- Lower incomes. On average, women earn 25% less than men in equivalent jobs.
- Short career. Women tend to work 11 fewer years than men over a lifetime, which means that they accrue fewer social security benefits and are less likely to qualify for and contribute to retirement plans.
- Longer lives. Women live longer than men (by an average of 7 years) so they need to save 20% more for their retirement.
Starting out as soon as possible with a solid financial plan and developing healthy habits are great ways to meet your financial goals with ease.
Establish Good Habits
Time is on your side when you start saving early, but many people don’t know how to begin. We’ve put together 6 habits that should put you on the path to vibrant financial health.
The smartest thing you can do when you’re young is to make regular contributions to a retirement account. Here, we explain why and illustrate the powerful principles of compound interest and tax-deferred growth.
Source: Making The Most Of Your Money by Jane Bryant Quinn