Financial independence for today's woman is no longer a luxury; it is a necessity! Single or married, working in the home or outside it, women need to know how to manage money in a way that can help them achieve financial goals that may include *living well in retirement years *paying for college educations for self or children *estate planning * buying a house or income property *starting a business.

Financial Power Among Women

With the combination of an increasing number of women in the work force, high divorce rates, and mortality figures that favor women, it's no surprise that women have been controlling large sums of money for some time.
Reviewed studies show:

• In 1986, women comprised 41% of all individuals with assets of $500,000 or more.
• More than 50% of women aged 16 or over work outside their homes.
  
• Women make up 35% of the country's owners of common stock.
  
• Women operated 305 of the nation's sole proprietorships in 1987, versus only 75 five ears earlier. However, despite their control of large amounts of money, more than 60% of women working today are without a pension plan, versus 53% of men. Moreover, 76% of retired women receive no pension benefits, versus 54% of men.

A Five-Step Money Management Plan

Clearly, women need to be concerned with their financial futures. Many women need to spend time enhancing their investment knowledge before they invest their money. A five-step plan can be very helpful to anyone who wants to start on the road to financial independence.

Step 1: Set some realistic and specific goals-both short term and long-term. Be disciplined in setting money aside for specific purposes.

Step 2: Organize your finances. List all your assets and liabilities and figure your net worth annually. Monitor the growth in your personal wealth.

Step 3: Allocate your resources. Once you know how much money you can invest, determine the best asset allocation for your situation. This depends on your objective, risk tolerance and cash needs.

Step 4: select your investments. A portfolio structured with a combination of stocks, bonds and cash is most likely to achieve the maximum return with the least amount of risk.

Step 5: Monitor your results. Financial planning is an ongoing process. Your needs and objectives will change throughout your life, and your investment portfolio will need to be adjusted.

At least twice a year, monitor two aspects of your portfolio: (1) Review your combination of stacks, bonds, and cash and be sure you are still comfortable with your asset mix.
(2) Monitor the performance of investments that fluctuate in value (such as stocks and mutual funds) and calculate the gain or loss in each investment.

Remember it is never too early (or too late) to begin your financial planning. Financial security tomorrow requires superior investment performance today.

© 1994, Myrna Spence Turner