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August 28, 2012
Are You Wealthy?
U.S. women control some $14 trillion in personal assets. By 2020, we're expected to control $22 trillion, according to the Center for Women’s Business Research.
But that doesn't mean we're "wealthy."
You could be a top earner in your job, but it’s not set in stone. With uncertainties such as taxes and layoffs, what you make this year may be more than next year's salary.
So how do you determine your wealth?
“Wealth means you have options,” says Lechelle Moore, SVP at SunTrust Investment Services Inc.
If you respond "yes" to these questions, then you know it takes more than your income to make you wealthy:
1.) Do you have enough cash on hand to leave a bad relationship?
2.) Could you support yourself if your spouse died?
3.) Could you financially float if you quit an unfulfilling job?
4.) Will you go broke after paying off property loans?
To protect your wealth, Moore warns against simply spending more than you have. She suggests categorizing the use of credit into "wise" and "unwise". Think: it's smart to buy a home and pay it off slowly via credit, but unwise to use credit to fund monthly expenses.
When it comes to cutting back on unnecessary expenditures, she suggests thinking of it this way: “It’s not a crash diet, it’s deciding how many French fries you can have at a time.”
Plus, check out A woman’s guide to investing, Moore's must-read.
Bonus PINK Link: Find out six ways to grow your wealth with your income in our online exclusive!
What are your top wealth tips?
Have more questions? Ask our expert.
By Ruchika Tulshyan
“The only way not to think about money is to have a great deal of it.” Edith Wharton
*Supporting images from FreeDigitalPhotos.net, vichie81 and adamr.
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Comments
Protect Yourself!
For me, it is all about protecting myself from the things that would deplete my wealth. I am talking about needy family members. I have determined that I do not have it in me to turn my back on family members in need, so I have learned to limit my exposure. I max out my 401k contribution and I sweep an additional 5% into a money market account every pay period. That ensures that the money I contribute to needy family members is NOT the money I need for retirmenent or my own emergencies.