Healthy financial habits, teach your children young

When building healthy financial habits the objective here is to start as early as possible. Speaking from a Mothers view point I started teaching my son to save before he could walk. Why you ask? Because bad habits once formed are harder to break than building positive healthy habits.  Of course as he got older he would have rather bought that new game for his xbox than deposit his birthday money into his savings account. Here is why you teach your children young about saving money for the future. Now a 16 year old he has a nice savings but more importantly he has a positive and ethical outlook on the value of a dollar.

Taking control of your financial future at a young age you are instilling qualities like structure and confidence that will have a long lasting effect, therefor, you are establishing a positive saving method creating good financial habits early. I know in my twenties saving for retirement was not the first thing to do on my list but it should have been. 

So why should you focus on good financial habits as soon as possible? Because statistics show women live longer and with the pay gap we have no time to waste. The sooner you develop a system to saving the more profitable you will be in the long term. 

saving for retirement 

The numbers and figures I am going to share with you is based on a 25 year old female on a salary of 70,000 dollars a year starting out. You should be saving 20% of your paycheck 50% on essentials like rent and food and 30% on discretionary spending. With that said if you are earning 70,000 a year 5,800 a month 1,458 a week before taxes figure you are bringing home 1,050 a week, 250 dollars should automatically go into a savings account. Always pay yourself first this way you ensure you are adhering to the amount you have allocated before hand. I suggest setting up an automatic withdraw into a savings account in order to secure the amount pre determined to save.  If you do this for ten years you will have 120,000 saved by 35 years old.

At the age of 35 with an increase in your income based on raises and or change of employer because you know your value and what your level of expertise is worth you should be at 100,000 or more depending on the line of work you are in. At 100,000 a year and saving 20% of your paycheck the break down will look like this 832 a week, 3,328 a month, 39,936 a year in ten years you will have 399,360 saved plus the 120,000 you will have over a half a million saved by the time you are 45 years old. That is some serious cents you had enough sense to plan for.

Now of course you may want to buy a home maybe get married or fulfill a few items on your bucket list. You will have the money to put towards a down payment on a home or to pay for a wedding even take that trip to Europe you always wanted to do. Good news is buying a home is just adding equity to your financial portfolio. If you continue saving based on these calculations you will have over a million dollars saved by the time you retire which will be age 67 provided you wish to work till full age of retirement. That is an excellent objective for saving as well as building up your financial habit of saving.

Now let us take it another step further. I recommend a high earning savings account, CIT Bank has the best money market account by far. You definitely want your money to make additional profits for you. CIT Bank offers a savings with no fees and a APY of 0.55% well above the national average which is 0.01% making CIT Bank by far the wisest choice when saving for retirement. All you need is 100 dollars to open the account make sure you set up the auto draw and you are only allotted 6 transactions per statement cycle. 

I understand not everyone is in the same income bracket and that is fine. The moral to the story is save. No matter how old you are or salary the point is to save your money. The older you are the more you will have to save to reach those goals. Reference my opening paragraph on starting to save early in life. Teaching your children good saving techniques or yourself the objective remains the same being financially well rounded and secure. 

independent female

Some personal words I wish to express. Being an independent female is empowering. You never want to be dependent on someone else nor do you want to have regrets. Which brings me to the basis of my blog and that is educating women on financial stability because no one knows what the future holds. Divorce happens, children grow up and go to college and there is nothing less empowering than not being financially secure. Women should always have their own savings account whether you are married or single which makes complete sense. You always want to make sure that first you have built a healthy financial habit of saving so you are secure and independent. Second, establishing good financial habits early people become accustom to saving over spending therefor, when the time does come to retire you will have a healthy and strong portfolio or savings to do just that. After all those years working you will be able to kick back relax, travel or move to a house on a beach somewhere, the point, your will be able to do anything.