Five Steps to Financial Protection
Squirreling away a bit of each paycheck is a terrific way to bolster your finances, but it may not be enough. Below are five additional tips you can follow to keep yourself, and your bank account, protected.
Create a realistic budget. Living within your means is your financial foundation toward eventual security. Learn the difference between wants and needs.
Build an emergency fund, so when the unexpected happens, you can protect your assets. The general rule-of-thumb is that a healthy emergency fund covers three to six months of living expenses.
Contribute to your retirement. Because women live longer and are often in and out of the workforce, they are economically vulnerable, especially in retirement. Start saving now.
Establish and protect your good credit. Try to pay off your credit card balance monthly or get on a payment plan to pay off the credit card altogether. Pay cash whenever possible.
Protect all you've earned with adequate life insurance. An unexpected death and loss of salary can leave loved ones vulnerable. Life insurance can help cover mortgage, childcare, and college expenses.