5 things every Woman should know about … their Finances!

Three in four adults agree that they could benefit from guidance and answers to everyday financial questions from a professional, do you agree with them too?¹

Since women control or influence the handling of the household finances, here are five things every woman should know about their finances, including a few tips from New York Life to get you started on the path to Financial Freedom.

#1 Maximize your tax credits ²:

Each year the deductible amount you can contribute to a retirement account is increased for inflation, and there are catch-up contributions for those 50 or over.

• You can receive a $1000 tax credit for each of your qualifying children, in addition to each dependent’s personal exemption. Don’t forget to take this credit-it’s like receiving $1000 tax-free in your pocket, as long as your income doesn’t exceed the limitations.
• The child and dependent care credit will cover up to $3,000 of qualifying expenses if you pay a babysitter or day care center so you can work or go to school.

#2 Become a S.M.A.R.T. spender:

Set S.M.A.R.T. financial goals (Specific, Measurable, Achievable, Realistic and Time bound) and create a spending plan in 4 steps³:

1. List your income

2. Compare your income and expenses

3. List your expenses

4. List your resources and set priorities

#3 Develop a savvy investment strategy:

Finding the right mix of investments depends on your available assets, your financial goals, your time horizon, and your tolerance for risk. It is important to ensure a balance between three things: liquidity, return, and risk. Start systematically investing as soon as you are able so that a reasonable amount is saved, even after just a few years. The compounding effect can help to speed up your savings⁴.

#4 Know your credit score:

Based on the factors below you are assigned a credit score between 300 (low) and 850 (outstanding). Here are the main areas in which you are graded and given credit scores, and the approximate weight that each area is given⁵:

• Payment history: 35%
• Outstanding debt: 30%
• Credit history: 15%
• New credit and types of credit: 20%

#5 You are your most important asset:

For most people, human capital is the missing piece of their portfolio. You insure your car, in the event you get into an accident. You insure your belongings, in case they’re lost or stolen. Your biggest asset is your ability to get up every day and provide for your family, whether by working or being the primary care giver. How do you insure your biggest asset? Through life insurance products.

A financial professional is trained to help you select and recommend vehicles that are suited to your protect your specific needs. You might find that working with a trained financial professional can help you to make well-informed decisions and stick with your financial plan — it is important that this is someone you are comfortable working with.

Click here to learn more about how New York Life can help you educate yourself on financial matters and set you on the path to a secure future.

Article by New York Life Insurance Company:

¹ The 2014 Consumer Financial Literacy Survey, The National Foundation for Credit Counseling, http://www.nfcc.org/NewsRoom/FinancialLiteracy/files2013/NFCC_2014FinancialLiteracySurvey_datasheet_and_key_findings_031314%20FINAL.pdf

² http://www.wife.org/taxstrategiesforwomen.htm

³ http://www.pacer.org/publications/possibilities/make-a-spending-plan/68-make-a-spendingplan.html

⁴ Systematic investment techniques do not assure a profit or protect against a loss.

⁵ http://www.wife.org/features_bottomline_creditscores.htm