Some more tips that I picked up at the Go Girl Finance event Monday night and wanted to share:
Love & Money
- The number one predictor of divorce is fighting about money. That I knew already, but Personal Finance Expert Manisha Thakor has a simple test to determine whether a couple is starting from the same basic headspace. When you look at a menu, which side do you order from first: the left side, or the right side? And which side does your partner order from first? (This test doesn’t exactly work for me, since I like to order two appetizers rather than an entree because I usually think appetizers are more interesting…but I get where she’s going: do you approach eating out as an opportunity for indulgence, or are you frugal even when enjoying yourself?)
- You (and your partner, if you have shared finances) should give yourselves an annual “financial physical”, going over your net worth, your savings, and your credit score.
Saving For The Future
- The three most powerful words in the world of personal finance: Start Saving Now. The money you save in your twenties and thirties will give you five times the money in the long run.
- Savings show respect for yourself and your life (and that life may be pretty long – or at least significantly longer than previous generations – so keep that in mind when you start your savings plan).
Estate Planning & Insurance
- No one likes to talk about this stuff. But this is one of those things that feels like it doesn’t matter…until it does. And then it really, really, really does. At minimum, you should have the following: a medical directive, a will, life insurance, disability insurance, and umbrella liability.
- Your life insurance should be at minimum 5-10x your annual income, and the younger your children are, the more you should have.
For The Self-Employed
- If you own your own business, you should protect yourself by setting up a wall between your personal and professional finances.
- Set up an LLC (Thakor recommended using Legalzoom), which will have both legal and tax-related benefits, and set up separate bank accounts in case you’re audited.
I promise: we’ll get back to your regular programming now…but this stuff is too important to ignore.