THE FACTS OF LIFE - WHAT EVERY WOMAN SHOULD KNOW ABOUT MONEY

Written by Craig Lock


FACT ONE:

MOST OF THE FINANCIAL HARDSHIP EXPERIENCED BY WOMEN IN LATER LIFE IS DUE TO SOMEONE REFUSING TO FACE FACTS EARLY ON.

These days there is no need for any woman to spendrepparttar second half of her life with a lower standard of living. Yet many still do. This is because they continually deferrepparttar 131149 decision to do something about preparing for their financial future until it is too late.

In some instances it is because a woman doesn't know exactly what financial provision has been made for her, or feels awkward asking. Or maybe she doesn't marry, in which case she MUST provide for herself, but fails to do so. When you are young, healthy and enjoying life, it seems unnecessary to be thinking of putting something aside and there is always something else to spendrepparttar 131150 money on. With good luck of course you may never need to bother. But trusting in luck is no way to provide for your future, how often has luck let you down inrepparttar 131151 past?

Life, as 'they' (who is 'they'?) say, is what happens to you while you are making plans to do something else. (Think it was John Lennon who uttered those wise words.) So it is better to make provision forrepparttar 131152 unexpected, becauserepparttar 131153 older you get,repparttar 131154 morerepparttar 131155 unexpected happens.

FACT TWO:

WOMEN NEED TO PREPARE FOR FINANCIAL INDEPENDENCE JUST AS MUCH AS MEN DO.

These days one does not hear so much aboutrepparttar 131156 "family breadwinner," largely because so many women either provide for themselves or make a substantial contribution torepparttar 131157 FAMILY INCOME.

But what happens if your husband dies and his income dies with him? Suddenly you are prevented from working.

All to oftenrepparttar 131158 result is a dramatic fall inrepparttar 131159 family's standard of living and in their quality of life. And this happens just atrepparttar 131160 time creature comforts are most needed to softenrepparttar 131161 blow. No amount of money can bring back a loved one, but quite small amounts set aside regularly can makerepparttar 131162 difference between sadness and absolute despair for you and your children.

The only way to be sure you can cope is to do something about it yourself-- to make sure you are adequately provided for.

FACT THREE:

THREE OUT OF FOUR WOMEN HAVE NO PERSONAL SAVINGS.

Women are natural savers. Security comes very high on their list of life's priorities and yet so few have actually managed to save anything at all.

Others have put aside a little in a savings account or building society which is fine for short term savings but doesn't really offer a chance forrepparttar 131163 money to grow into a worthwhile sum. Many who have saved watchedrepparttar 131164 demand ofrepparttar 131165 early years of marriage swallow up their nest egg and never had enough incentive to replace it later on, thinking that everything would be provided for.

FACT FOUR:

WOMEN LIVE LONGER AND SO HAVE A GREATER CHANCE OF BEING LEFT ALONE.

On average a woman can expect to live longer than a man. For a married womanrepparttar 131166 implications are obvious but a single woman will also facerepparttar 131167 possibility that later in life she will have fewer friends and relatives around. In neither case is this a time for financial hardship.

Women, Retirement and Social Security

Written by Doris Dobkins


Which ofrepparttar following are reasons that Social Security is especially important to women:

a) Women are less likely to have pensions when they retire. b) Women live longer than men, increasing chances of outliving their assets. c) Women have average lower lifetime earnings because of pay-inequity and time out ofrepparttar 131147 work force to care for family. d) All ofrepparttar 131148 above.

The answer is d) all ofrepparttar 131149 above.

Women are living well intorepparttar 131150 eighties and many will spend more years in retirement than they ever did working. As you can imagine, this is placing a tremendous strain onrepparttar 131151 Social Security system. One ofrepparttar 131152 best ways to be prepared for retirement is to prepare yourself.

"Forty-two percent of all women over seventy-five are living on less than $13,000 a year, and when Baby-Boom women retire, only an estimated twenty percent of them will be financially secure" according to a special report titled "Why Most Women Can't Afford To Retire" inrepparttar 131153 current issue of Ms. Magazine. It is estimated that only 20% of boomer women (born between 1946 and 1964 will be financially secure in retirement.

Here's some wisdom for women planning for retirement:

1. Statistics show that 80% of women will need to take charge of their own finances at some point in time. It is important for them to fully understand their personal finances and investments. If you don't understand your finances, ask your husband to explain them to you, enroll in a class and your local community college or learning center or check out some financially related books fromrepparttar 131154 library.

2. It's never too soon to get started investing for retirement. The sooner you get started,repparttar 131155 longer you have to let your money work for you. Don't put off saving. Just $25 a week starting at age 35 could add up to $100,000 to your nest egg before retirement. Start now, automaterepparttar 131156 process by havingrepparttar 131157 money automatically deducted from your paycheck before you have a chance to spend or even see it.

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