If you’re a woman who wants to create financial abundance, these tips for debt control will help you create wealth that you’ve only imagined!
These success strategies are from financial experts Lisa Caputo, Founder, Chairman and CEO and Linda Descano, CFA, President and COO of Women & Co, a comprehensive financial website for women.
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Before their tips, a quip:
“A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” – Suze Orman.
Can you imagine financial freedom? I can — and that’s one way to achieve it! Visualization can help wome create financial abundance.
Read on to learn how to take charge of your money from Caputo and Descano. And don’t forget money guru Suze Orman’s money tips! Read Women & Money: Owning the Power to Control Your Destiny.
7 Tips for Creating Financial Abundance for Women
Gather your financial records
Pull together your financial statements (e.g., bank, credit card, brokerage), your insurance and legal documents (e.g., life insurance, will, healthcare proxy), and your personal records (e.g., birth certificate, marriage/divorce certificate, property deed). Create a filing system and put a copy of your important papers either in a fireproof box at home, a bank safe deposit box, and/or with a trusted lawyer, relative, or friend. Less clutter equals debt control — so the sooner you organize your finances, the better.
Figure out the big financal picture
Use your financial statements to calculate your net worth, which will tell you the difference between what you own (assets) and what you owe (liabilities). Once you have a picture of your overall net worth, you need to determine your cash flow, which will help you identify areas where you could be saving more money and/or investing more money.
Set your money goals so you can achieve financial freedom
Short-term goals are those you’d like to accomplish within one year (e.g., accomplish debt control by paying off credit cards); mid-term goals are within five years (e.g., make a down payment on a new home mortgage); and long-term goals, five years or more (e.g., save for retirement). To take charge of your finances and create financial abundance, write these down to help you clarify and prioritize your financial goals.
Allocate your money (set a budget!)
Once you know your financial goals, allocate your money accordingly. This will help you determine how realistic your financial goals are, how long it may take to meet them, and what adjustments you may need to make now to achieve your goals in your desired time frame. Review expenses monthly and evaluate your progress regularly.
Check your financial reputation or credit report
Your credit score is a picture of your financial health in the eyes of lenders. Check your credit reports as they could have errors or discrepancies that could limit your access to credit and hamper your attempts at debt control! Resolve any errors. If you have any overdue payments, work towards paying them down as soon as you can. And, read 10 Facts About Credit Scores for info on how your credit report affect your requests for loans, credit card applications, etc.
Protect yourself financially
If you don’t have a will, living will, or health care proxy, talk to an attorney to help ensure that your assets are handled according to your wishes. Dealing with these issues today can help you and your loved ones breathe easier in the future — which will help create financial abundance.
Stay informed and engaged about your money
Periodically review your financial goals and objectives at least once a year, as they will likely shift over time as life circumstances change. If you’re ready to start investing your money, read Overcome Fears of Investing Money for Women.
If you have any questions or thoughts about debt control for women, please comment below!
Women & Co. is a financial resource program from Citi, dedicated to helping women achieve their financial goals. Members can read newsletters, listen to audio conferences, and find out about Master Class seminars in major metropolitan area.