Woman And Money: Hitting Financial Milestones 101

Setting financial goals in preparation for life’s milestones can be stressful, especially when you’re unsure of where to begin. And yet, it shouldn’t be. For far too long, have women been kept out of the conversation around money. It’s a large part of why women score notably higher when it comes to economic anxiety in studies and why we worry more about money than we do about our health, career, or expectations.

However just like anything else, addressing the unknown is the first step to beating our fears. No matter how economically savvy you are, starting with (or revisiting) a few first basic steps to plan, budget, and assess your current monetary health can help to set you up for success and will ease anxiety with any stage in life.

Establish Your Goals & Milestones

To narrow down your goals, look at the stage of life you’re currently in and the goals you have achieved up until this point in time. Financial milestones go hand in hand with major life events like starting your career, getting married, having children, buying a home, or retiring. All of these have an immense impact on your wallet, so anticipating how much money you will need in preparation for these events and how much you have already spent is key to creating an accurate budget.

Before we jump into the budgeting process however, let’s take one step back and establish your goals:

Write down your financial goals, prioritizing them by timeliness. The closer the milestone, the less time you have to plan, so the higher priority it is to start setting aside money in preparation. Don’t forget to also list the estimated amount of money you will need for each milestone, doing research into each’s average cost.

For example, if buying a home, determine how much money homes typically go for in the area you are looking and how much house you can currently afford so you can set aside for the down payment, mortgage, and repairs in advance. This will make this major milestone that much easier and will help you avoid any setbacks in anticipation for starting a family to fill that new home, or to possibly make a career shift.

Whatever your goals are, be sure to update your list frequently and stay on top of your budget, which we’ll dive into next.

Plan & Design a Budget

It’s difficult to plan for the future, because let’s face it, we have no idea what’s in store for us. But, sometimes laying out a timeline can help when it comes to making life-changing decisions and planning for the financial obligations that come in tow. Adding a budget that coincides with your timeline also helps to be prepared for whatever milestone fills your list.

Design a budget that documents your monetary health for times when you need to spend large sums of money to not only have ease of mind, but make it possible to adjust your broader financial plans. In order to plan for these larger expenditures though, you need to bring focus to smaller spending habits.

Begin by taking note of current income and expenses. Know the money you have coming in and break down the money you have going out for things like rent, mortgage, maintenance, gas, heating, water, and so on. The difference between the two is your disposable income. Now before you hit the shops, consider setting aside a designated amount into a savings account and using a smaller portion to treat yourself.

This keeps your spending habits in check and builds a savings without much thought.

Start Saving Sooner Rather than Later

Speaking of building savings, let’s review the best ways to save and what exactly to save for. Moving past  short-term goals on your list, direct your attention to the long-term financial milestones– in other words, planning for retirement. 

There’s no better time than now to start planning for retirement. Set aside a portion of each paycheck into a 401K or IRA account to start planning ahead. Take advantage of employer matches, and prepare early to ensure you are financially supported whenever you choose to retire. Check out this article for more helpful insights into the benefits of a 401K program, and don’t be afraid to approach your employer about this benefit opportunity. They are there to act as a resource and assist you through the process. 
For short-term financial goals, if you struggle to save on your own and just can’t seem to organize your money in a way that is conducive to your current and prospective lifestyle, consider consulting a financial planner or advisor. They can sit down with you and design the financial roadmap that will lead you to a healthy savings and bridge the gap between where you are now financially and where you want to be. They can also help you to tackle financial responsibilities like taxes or monitoring investments. This sense of clarity and organization will take the weight off of your shoulders and ensure your money is in reliable hands. It also gives you the extra encouragement to build healthy savings and avoid unnecessary spending.