Today Show: Financial Advice For Your 20s, 30s and 40s
The Today Show invited Carmen Wong, author of The Real Cost of Living, and the editor of Glamour, Cynthia Leive, to find out what kind of financial advice they have for woman in their 20s, 30s and 40s.
The first thing Leive wanted to touch on affected every woman, in every stage of their life. She said women are making about $.77 to every $1 a man makes, but only 42 percent of women have ever asked for a raise. She pointed out that four out of five of the women who asked for a raise received the raise. She said if you negotiate your salary at the beginning of your career you could earn $1 million more in your lifetime. So why not go ask for a raise?
Today Show: Stretching Your Money In Your 20s, 30s and 40s
Leive said when you are in your 20s, it is essential to budget and find affordable health care. She said this could mean searching for a good price on health care or it could mean staying on your parents’ until you are 26 and paying your parents’ extra premium which will be lower than the cost of health care for yourself.
While in your 30s, Wong said it is important to save money. She suggested putting away all the money you are going to hopefully get back after taxes this year. Leive expanded on the idea and said if you have trouble saving money, you can have the government deposit your money into your account every month.
In your 40s, both women said it is imperative you make a will. They said it is important for all women to have a will written up and said sometimes it might be smart to have the will made as soon as you have your first child.
Today Show: Saving Your Money In Your 20s, 30s and 40s
Leive said it is important to start putting money into your 401k in your 20s. Wong agreed that money should be put in the 401k, but she said it is also important to pay off any debt you have as early in life as possible. She said she was disciplined enough to put five percent of her check into her 401k and the rest she used for living and paying off her debt.
In your 30s, both women said it is about getting a six month emergency plan ready, which does not mean your 401k. Never dip into your 401k until retirement. Wong said if you like spending your money, don’t even put your emergency funds in the same account as your debit card.
When you hit 40, Leive said it is time to start saving some serious money. She recommended putting 20 percent of your salary away for retirement and don’t worry about your child’s college tuition until retirement is saved for.
Today Show: Spending Money In Your 20s, 30s and 40s
When it comes to spending money in your 20s, Wong said never pay retail for anything and buy things that make you happy.
When you hit your 30s, both women suggested buying nicer things that will last a long time.
In your 40s, Leive said it is important to only use cash for big purchases to make sure you aren’t accumulating debt. She only suggested paying for a house or car with a loan and everything else she said should be bought with cash.