TOP 5 PERSONAL FINANCE TIPS EVERY BUSY WOMAN SHOULD KNOW…

This week I participated in a local area holiday trade show where I exhibited a table for my bookkeeping business, Empowered Bookkeeping. The event was held on the campus of a local school, designed mainly to attract the busy moms with children enrolled in the pre-school as well as a daycare program.

Amongst the various offerings and holiday goodies available at my table, I had prepared a handout for those ladies who stopped to chat, providing them with a list of the top 5 personal finance tips that I believe every busy woman ought to know. I pulled the list from a great website which I found to be a great resource for women in search of helpful information in the realm of personal finance. Feel free to check it out for yourself. The top 5 list is included for your convenience below:

1. Know that Credit Scores Affect More Than Interest Rates. If your score is less than 620, not only will you pay significantly more money for mortgages and other types of loans, but also more for your insurances. Your car, life and auto policy premiums will all reflect your credit. An adverse score may also keep you from leasing an apartment, or getting your dream job.

2. Don’t Skimp on Healthcare. Of all the ways to save money on monthly expenses, cutting your healthcare is the worst idea. Saving a few hundred dollars a year is hardly worth having to pay $50,000 in medical bills a few years down the road.

3. There’s a Big Difference between Saving and Investing. While saving money is something that should be done regardless (rainy day savings, retirement, etc.), investing should be done when you are relatively debt-free, especially when it comes to credit card debt. The average 18% annual interest paid by you on credit card balances will be hardly made up for in any investment opportunity.

4. Buy Life Insurance with the Hopes of Never Using it Life insurance should be purchased to help care for your dependants in the unfortunate event of your untimely passing- and that’s all. This way, mortgage payments, grocery expenditures and college fund contributions can continue without interruption.

5. Always Try to Pay More than the Minimum Mortgage Payment. By paying one additional principle and interest payment (mortgage payment minus any escrow payments) onto your mortgage balance each year, you will knock 7 years off the life of your note. It all adds up- to a lot!