(Photo by Lightfield Studios/Adobe StockAs inflation rises, it is more important than ever that single women are savvy with their finances.
So say Jill Gianola, financial experts, and Margaret Price. Single women and money: How to live well on your income.
Jill GianolaThese two share best practices about how single women can navigate the current environment.
Gianola, a certified financial planner, is the founder of Gianola Financial Planning LLC Worthington. Mutual Funds magazine named her one of the top 100 US financial planners. Money magazine featured Gianola’s advice in Secrets of Americas TOP Advisors.
Margaret PricePrice is an award-winning journalist. He has been an editor of Bloomberg Wealth Manager magazine, Crain Communications Pensions & Investments international editor, and senior editor at Treasury & Risk Management.
Price was also the past president of New York Financial Writers Association.
Katie Kuehner–Hebert: April’s Financial Literacy Month is right around the corner. What should single women know now about it?
Margaret Price:The public faces an onslaught from inflation this year. There are also concerns about how to deal with it. Single women can often survive on one income. This is unlike dual-earning married couples. Single women may need to plan for their finances in a different environment.
First, they need to review their finances and prioritize the necessities such as housing, food, and transportation costs. Next, they need to consider what can be delayed like a new vehicle. They shouldn’t be deprived. However, they should still have a budget for essential items such as dinner with friends and other affordable items.
They should also consider what additional income sources they might be able to get, such as a salary rise or renting a part of a house or apartment.
They should also evaluate their investments. They should examine whether certain portfolios need to be adjusted in today’s inflationary environment.
Jill GianolaSingle women are more vulnerable to inflation because they don’t have the income of a spouse.
In these times of high turnover and a shortage in qualified workers, single women may be able to counter inflation by asking for a raise or getting a better job.
How can single women save the most for the future if they are struggling to pay off their debts?
Gianola:This is one of the most difficult aspects of managing money. You have to balance multiple goals. There’s a lot to do when trying to achieve multiple goals. Many people wonder which goal they should first address.
It is a good idea to have a plan and make progress throughout the year for each goal. A person may lose valuable ground if they ignore one area of their finances.
Price:Many employers now automatically enrol their employees in their 401k retirement plans. Employers can now automatically enroll their workers in 401(k) retirement plans. Funding is taken from employees’ gross earnings.
This automatic process helps employees save for the future, even if they have multiple income demands. This process is especially beneficial for single women, as they often only have one income.
If the employer does not offer a retirement plan, employees should contribute to their own IRAs and set up automatic monthly contributions. The more funds that younger workers accumulate over time, the better.
Is there a maximum amount of credit card debt a woman can take on?
Gianola:Single women should have the ability to pay off credit card and revolving loans in three to six months. If they add debt, they should increase monthly payments.
If a person has trouble paying off debt in six month, they should revise their budget to find extra money for debt repayment.
Single women should save money for vacations and other high-dollar expenses. They should also have an emergency fund that can cover three to six months of basic expenses.
Price:I believe that consumers, even single women, should not have a credit card balance. Why add interest payments to things you’ve already bought?
If you have to travel to California to attend a friend’s wedding, don’t put it on your credit card. Find ways to budget around it.
Do not cut corners during the months before your trip and instead, stay with a friend while you are in California. Some people use their debit cards to pay for bills every month, which helps them avoid overspending.
How can single women find financial assistance in difficult times?
Price:Our book contains a whole chapter about this topic. It includes a list of resources single women could use to address a range of issues. These include being penniless, finding financial advisors who will work pro bono, and even sources to help with medication costs.
However, if someone is facing difficult times, a good rule to follow is to ask your local government officials which government agencies could help you. This is one of the fastest ways of getting help.
To avoid becoming hungry, they should also apply for SNAP, the government’s Supplemental Nutrition Assistance Program.
You should also contact your credit card company to tell them about your situation. Companies will usually find a way for such customers to be accommodated, as long as they don’t want them to declare bankruptcy.
If single women have difficulty paying rent, they should talk to their landlord. Sometimes states and municipalities have programs that can help to prevent eviction.
Gianola:Payday lenders are not recommended for single women. The interest rates are high and it is the worst place to borrow money. Instead, they should ask their local bank or payroll provider if they will extend a short term loan. This is a cheaper way to fund a gap that turning to a payday lender.
Even if they don’t feel desperate, but are struggling to make ends meet, career counselors or therapists who specialize in money issues can help. We love the idea that single women can get together to discuss their finances, perhaps even after they have finished their book clubs. Talking to friends about your money and learning from them can help single women feel more confident about their finances.