Less than 25 percent of women feel they are “very well prepared” to handle their finances. World-renowned financial author Suze Orman gave her advice to women in a recent issue of O, The Oprah Magazine.
Get A Grip
1. Start tracking your spending. We usually pay close attention to the big-ticket items, but we often ignore the little things that begin to add up before you know it. All you have to do is get all of your credit card and bank statements. Suze Orman offers Suze’s Expense Sheet. You input your average monthly expenses and see where your money is going.
2. Calculate your net worth. This is important because we often forget about our debts. You have to pay attention to the big picture, says the article. Go to a search engine and type “net worth calculator.” There are lots of free tools out there on the Internet.
3. Check your credit profile. Your credit score can affect so many things, such as interest rates and insurance in some cases. Check out Annual Credit Report to get a free credit report. You can get one free report each year.
4. Cut spending by 10 percent. According to Orman, the median pay raise for this year is expected to be around 3 percent. So, take a look at your spending and try to cut it by 10 percent.