Get married. Buy a house. Have kids. Sounds lovely, doesn’t it? However, unlike my parents’ generation, I see less and less women on this stereotypical life track. More and more, I’m seeing women in their 20’s, 30’s and 40’s who are on their own, and maybe want to get married, buy a house & have kids, but don’t know when that’s going to happen.
We live in a world of Meghan Markle, Amal Clooney and Bethenny Frankel. The timeline of life is getting pushed out further, creating a new demographic – bad ass women earning & growing their wealth with no idea what to do with it.
While this seems like a great problem to have, it makes it difficult to figure out what exactly you should be doing with your money. What I’ve seen with women in this scenario is that maybe they overspend because they have extra cash flow. Or maybe they have way too much money sitting in savings earning pennies because its just been building over time.
When we talk about investing, one of the first things a financial advisor should ask you is what is the goal you are looking to achieve? The financial goal determines how you should invest. If you’re part of my bad ass women demographic, are putting money into a retirement account & have enough cash, then what is the goal? And if you can’t think of a goal, then how do you invest?
This might seem like a conundrum. But we do all have a goal - we want out future self to live her best life, even if we don't know what that will look like yet. There are things we can be doing today to be prepared for wherever life takes us.
Focus on the 20 – my personal rule of budgeting to prevent overspending. Make sure 20% of your after-tax income is going towards your future self. Some ways to do that – contribute to a retirement fund, build emergency savings or create your Future Self Fund.
So bad ass women of the world, keep blazing your own path. But don’t forget to invest for your future self - she also wants to live her best life.