On an entry-level salary, saving money is not always possible.
But if you can put just a little away every month, time--investing's
most powerful ally--can make it worth the sacrifice.
Starting to save as early as possible may be more than advantageous,
it could be a necessity. Women face unique financial challenges,
and early planning makes it easier to compensate for these
factors. What are these unique challenges?
- Lower incomes. On average, women earn 25% less than men
in equivalent jobs.
- Short career. Women tend to work 11 fewer years than men
over a lifetime, which means that they accrue fewer social
security benefits and are less likely to qualify for and
contribute to retirement plans.
- Longer lives. Women live longer than men (by an average
of 7 years) so they need to save 20% more for their retirement.
Starting out as soon as possible with a solid financial plan
and developing healthy habits are great ways to meet your
financial goals with ease.
Time is on your side when you start saving early, but many
people don't know how to begin. We've put together 6 habits
that should put you on the path to vibrant financial health.
The smartest thing you can do when you're young is to make
regular contributions to a retirement account. Here, we explain
why and illustrate the powerful principles of compound interest
and tax-deferred growth.