Not all women will have the same financial needs. For instance, some of them might want to look for personal loan pre-approval, while others will not. Some may look for student loans, while others will elect not to go to college and to join the job market right out of high school.
Financial planning for women encompasses many different things, however, there is one financial move that it makes sense for all women to make, according to many experts.
Storing Up Emergency Funds
The pandemic taught the entire world a lesson about expecting the unexpected. It's impossible to tell what tomorrow will bring, but probably not too many people were prepared for something as impactful and prolonged as Covid-19. This led many individuals to reexamine their lives.
According to many experts within the financial field, many women were taken unawares by the pandemic and didn't have an emergency fund on which they could fall back. However, many of them have learned a lesson from Covid-19 and are now taking steps to set up a cash reserve in 2022.
Still, there are plenty of women who haven't yet built up an emergency fund yet. It's not necessarily something that you can just conjure up automatically, but the pandemic has shown that a global event or even a national one can throw things into chaos. Having at least a small cash reserve to turn to should be a top priority.
How to Create an Emergency Fund
Women who don't have an emergency fund yet can start taking concrete steps to create one. One way to do that is to boost your income through a side hustle. You might look into dog walking, yard mowing, babysitting, website creation, or anything else you can do in your spare time.
The gig economy is thriving, and any money that you can bring in this way should not be earmarked for your bills. Hopefully, you can use all or most of it to start a rainy day fund.
You can also look at your current expenses and try to figure out if there are any places where you can cut back. For instance, you might avoid eating out. You can brew your own coffee in the mornings instead of buying it while you're on your way to work. These are small steps, but they could be enough for you to put something into that emergency fund every week.
Try to Start Building an Emergency Fund
Women who have started their emergency fund have learned from the pandemic and changed their habits. If you haven't yet taken any of the actions we've mentioned, though, now might be the perfect time to start.
You might look at your weekly or monthly budget to see if there are any areas where you can cut back. If that means eating out less and avoiding a Starbucks splurge, you can do that. If you can find a side hustle and put the money you make that way into a rainy day fund, that's a smart idea as well.
Building up an emergency fund is not easy if you're already stretching your dollars, but it's vital. The pandemic has taught us that the world can look pretty different one day than it did the day before. You should do all you can to prepare for that possibility.
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Original Source: Credello: The One Financial Move Not Enough Women Are Making
