Money is definitely a touchy subject, but it’s important that we talk about it, especially if one of your goals for this year is to increase your wealth.
You can never be too informed or prepared when it comes to your finances, and these are the money rules every millennial woman needs to live by.
Rely On Yourself, Always
It’s easy to rely on someone else for financial stability and security, such as your boyfriend or husband, and it’s something more women than not end up doing. At the end of the day, you need to rely on yourself, always.
In the event your partner passes away or your relationship or marriage ends (sorry to have to point this out, but it happens), you don’t want to be stuck up a creek without a paddle.
It’s important that you still have your own assets, your own money, and a say in any joint financial decisions.
Do Not Live Beyond Your Means
To live beyond your means equates to you spending more money than you make, or more than you actually can afford.
The secret to being wealthy or building wealth for yourself is as simple as spending less than you earn every single month.
The bottom line here is you need to save more than you spend.
Live By The 50/20/30 Rule
Senator Elizabeth Warren popularized this budgeting rule, and it really does rule. The 50/20/30 rule is pretty simple to follow, and it’s a straightforward way to keep your finances on track.
Take your income after taxes, and put 50% of it into necessities such as rent or a mortgage, groceries, utilities, etc.
20% of that after tax income of yours should go directly to your savings.
That 30% you are left over with can be allocated to personal expenses, such as your phone bill, coffee, eating out, vacations, etc. Of course, you can also put more of this 30% into savings to build tour wealth faster!
Do Not Say I Do Without Discussing Money
Money is either going to be with you after you say I do, or it’s going to create one heck of a problem for you.
The reality is money issues or arguments absolutely lead to divorce, so you need to make sure you discuss your finances and ask your partner these important questions about money before tying the knot.
Do Not Take On Your Partner’s Debt
If you’re still in the dating phase, do not pay down or pay off your partner’s debt. Doing this won’t help them learn to make solid financial decisions. To top it off, not every relationship lasts and chances are good you will find yourself unable to recover that money when the relationship ends.
If you are marrying someone and they have debt, you need to come with a game plan on how that debt will get paid down. Your partner’s debt will affect mortgages, loans, you name it.
It’s a good idea to wait to get married until their debt has been significantly paid down. Another option you should look into is a prenup (no, it’s not just for the already wealthy, honey).
Make Sure You Have A Rainy Day Fund
Life rarely, if ever, goes as planned. Certain things can happen to you along the way that can be nearly impossible to dig your way out of financially if you don’t have a rainy day or emergency fund set aside to pull from.
Let’s say you get fired, or you get a huge hospital bill that your insurance won’t cover. Or maybe you get a bill for something that is so beyond what you expected, and it forces you to rack up a heck of a lot of debt on your credit card.
All of these situations happen. Having some extra cash to help offset these costs is an insurance policy you need to financially plan for.
Bre is a female millennial go getter residing in New York. One part entrepreneur, one part geek, she obtained her degree in Textile/Surface Design from The Fashion Institute of Technology.
She has held some exciting roles in both fashion as a designer working for brands like Victoria’s Secret and Henri Bendel, as well as in ad tech working for publishers like Ziff Davis.
Today she operates her own luxury label Bre Avery, and is also the Chief Chick at Chipchick.com which reaches millions of women each month.
Bre is passionate about keeping women informed of the latest technology trends and products to improve their lifestyle and believes in providing real, useful information and advice to her readers.