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Meet The Female Leaders Of Finance: “We have to have the same conversations about money with our daughters that we do with our sons, and we have to do it earlier” with Ande Frazier and Tyler Gallagher

As a society we have to have the same conversations about money with our daughters that we do with our sons, and we have to do it earlier. Girls have already formed a belief around money by the time they enter high school. From creating a savings piggy bank to recognizing the value of money and building discipline around it, all children should be learning the same things.

  1. Start saving as early as possible. Saving money early on is the best thing you can do for yourself. Those who save early on can take less risk throughout their lives and be more strategic with their money. Waiting until later in life to save money will cause urgency to earn money in a short amount of time, and the only way to get that done is through elevated risk. The best thing you can give yourself, and your money, is time.
  2. Pay yourself first. Many people get in the habit of saving what’s left after expenses and spending, which many times ends up being nothing. As soon as you receive your paycheck move money directly into a savings account, and then budget for what’s left. Whether it’s $10 or $100, paying yourself first counts.
  3. Create a liberty fund. A liberty fund is more than just an emergency fund. While it can cover emergency expenses such as medical bills or a new AC, it also serves to cover the expenses of leaving an abusive relationship or leaving a job you hate. A liberty fund should consist of 6 months living expenses, or 50% of your gross annual income. Only once your liberty fund is at that number should you start saving for retirement. If all your money is in retirement when you need cash to pay for an emergency, you may have to take money out of that retirement fund and build debt in the process.
  4. Keep the good debt. There’s good debt and bad debt and you need to know the difference. Good debt, like a mortgage, is deductible and an investment in your future. You shouldn’t automatically pay off your mortgage just because it is debt. You should consider that on a more strategic level. On the other hand, bad debt, like credit card debt, can bring down your credit score which affects so many other parts of life. You should try to pay down your credit card debt as soon as possible.
  5. Get protection early on. What creates money in your life is your ability to earn money. Protect that. Make sure you’re covered with life insurance early on because not only are rates better, but you have the freedom to make different choices throughout life, especially during retirement. Many people think about protecting themselves last, and it’s not something you can go back on and get insurance later.

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Authority Magazine

In-depth interviews with authorities in Business, Pop Culture, Wellness, Social Impact, and Tech