Emilia DiMenco is the president and CEO of Women’s Business Development Center.
Here’s her best advice to take control of your finances:
What is the biggest money mistake that women tend to make?
Most busy women, especially when they are younger, tend to push money management to [the] bottom of their to-do list, but that’s a big mistake. You need to aggressively manage your money throughout your life, regardless of whether you’re married, living with someone or living alone. Especially at a young age, select investments with an eye on building longer-term wealth, such as stocks, and focus less on low interest-bearing vehicles like money-market accounts and CDs.
What is the biggest mistake you made and what did you learn from it?
When I was younger, I was so busy with my career, managing my family and raising my son that I failed to make investing a priority. I should have been more diligent about managing my money. I had money in interest-bearing accounts, but diversified stock mutual funds would have been more appropriate for me and yielded a higher return.
What can I do today in 30 minutes or less to take better control of my finances?
First, sign up immediately for online bill paying, which can help you better manage your bills. It really helps with budgeting. Second, consolidate your investments in a family of two or three mutual funds that have lower fees and will help you achieve higher returns. Ideally, they should be funds that you can easily access and change online, and purchased from a company with a responsive customer service line you can call if you have questions. Finally, improve your investment knowledge. There’s a great deal of information online, so learning is much easier than it used to be. When your investment portfolio is sizable and you’re at a point when you are thinking about estate planning, tax implications and retirement income, then it’s time to consider hiring an investment manager.
