Advice: Money Management Tips For Women In The New Year
Financially-themed promises for improvement are, unsurprisingly, always among the most popular resolutions made each New Year. Unfortunately, only a few of resolution-makers are ultimately successful in their endevours.
Still, historically low odds of success nor uncertainty about the best resolutions to make should not discourage you from improving your financial habits in 2016. The decisions you make today can determine what kind of shape you and your money will be in for decades to come.
So I asked experts for some money management tip for the New Year and this is what they had to say:
There are a number of factors to consider before committing your hard earned money. It is imperative that you do your homework and ensure that the investment is appropriate for your current circumstance and that the future prospects align with your requirements and objectives. Determine what your present situation is and what the desired future financial situation is. In other words, where are you now and where would you like to be in the future in financial terms. You also need to quantify how long you would like to invest for. Investing for less than two years is considered to be short term while between three and five years is considered to be medium term. Long term is anything in excess of five years.
As we head into 2016 given a more uncertain economic outlook, how do we continue to grow our wealth and protect our precious savings? Firstly always remember to keep saving. The more putting money away becomes a habit the easier it is to do and the more you help your money grow by giving it time to compound. The future is always uncertain and every woman needs to strive to ensure that she makes provision for her own financial well-being.
The answer also lies in making sure that you know how long you are going to be saving for and then picking a product that is appropriate for that time period. Don’t pick an equity fund if you are going to need the money in a year or two. Shorter time horizons require low volatility investments, whereas for a longer time horizon (upwards of 5 years) the shorter term volatility is well compensated for in terms of higher longer term returns.
If you slip up from your plan, don’t beat yourself up. Don't quit. Start again where you left off. If you have to change your strategy or plan a bit then do it. Just don't quit. Remember, winning little battles leads to big victories.
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