5 Ways for a Woman to Create Financial Independence

Woman saving money in a piggybank – isolated over white background. Photo courtesy of Shutterstock.

College graduation is a milestone. Marked with a cap and gown, a ceremony, and also, financial independence. After college, you may be faced with making a number of decisions regarding your career, living situations and personal relationships. All of these areas of your life are improved if you are managing a path toward financial freedom. Here are five ways for a woman to create financial independence:

Create a Budget

Many people feel the constraints to create a budget are too limiting. However, spending some time assessing your liabilities and assets is essential in laying the groundwork for financial independence. After college, you may face student loans, a car payment and other “real-world” expenses. By assessing your budget, you can determine how you want to reach your financial goals in the quickest manner possible. By doing so, you can also gain an added insight on the lifestyle you want to lead and what job will offer you the best pay and resources to fund your preferred way of living.

Be Consistent with Your Savings

By accruing even a modest amount of savings, you create a window into financial independence. Every person needs an emergency fund in case they want to make a job transition, travel (or splurge on that handbag). When your savings increase, you can also begin to invest some of those funds in the stock market, opting to pool your money into a stock or mutual fund. By allowing your money to work for you, you can secure your financial independence at a more efficient rate.

Make Wise Transportation Decisions

Sometimes it is worth thinking out of the box regarding financial decisions for your vehicle. There are so many resources online to price shop for new and used vehicles, as well as to take care of maintenance. In order to limit the time you need to take off from work for car maintenance, consider buying your tires online from Tire Buyer. It will ship the tires directly to your home and you can avoid the hassle of taking your car into the body shop for someone else to change them. Invest in high quality tires, like BF Goodrich, which will last.

Understand the Drawbacks of Credit Cards

Credit cards are a great option to consider for recent college graduates. But it’s important to understand them first. They can alleviate the pressure of paying for big-ticket items immediately, but also offer a false sense of security of what you can truly afford. Try to make more than the minimum monthly payment on your credit and call the company to ask for a lower interest rate if you are a long-time customer. In addition, always pay your credit card bills on time. One late payment can influence your credit report rating. When it comes time to make any major purchases, like a home or car, companies are likely to run your credit report. Depending on the rating, they may charge a higher interest or require you to put a larger down payment. Make wise decisions regarding your credit card usage so you don’t become straddled with debt.

Manage Bills

Create a system where you can keep track of your bills. You can choose an online bill pay system to help you automate many of your regular expenses, like utilities, phone bills and electricity. Paying bills on time is crucial in avoiding late fees and higher interest rates. Set aside time every week to take care of bills so you aren’t scrambling at the last minute to make certain a payment is on time. By doing so, you can avoid the mental stress of worrying about your bills in your downtime.

Creating financial independence after college doesn’t have to be complicated. When you have a clear picture of your goals and understand your limitations, you can maneuver and create a financially independent path on your own terms.

Source: SocialMonsters