Invest or Die

I am not rich, but I have a financial advisor.

When I got out of college I was making peanuts, but I was well aware that how much you save is just as important as how much you make. So I squirreled away lots of pennies. And these pennies, along with some free temporary lodging from my parents, came in very handy when I had to unexpectedly quit my job and living arrangements with my boyfriend went up in smoke. Jobless and without a permanent address to call my own, I was glad I had been able to save for a rainy day.

So I continued focusing on saving. Putting money into my savings account religiously ever month.

Then one day I woke up, and realized I was only getting 1% interest on my savings! Basic inflation was kicking my hard earned money's ass, I had to do something!

Even though women are now a substantial part of the work force, are getting advanced degrees, and making more money than ever, they are generally woefully unknowledgable about money and investing.

It might be a hold over from having it drilled into our heads that men generally deal with the dirty business of finances. Or that in some cases women are more adverse to risk. Or in my case, like their money where they can see it, not in some far away mystical Roth IRA. But the fact of the matter is we have a lot of catching up to do.

There's a lot of confusing information out there. Lot's of graphs, numbers, funds, firms and scary paper work. But it's an important thing to start learning about.

Do you know what kind of interest you're paying on your credit cards, student loans, ect?
Do you know what you're credit score is?
If your company has a 401k plan are your participating? Do you know how long you need to work before you're vested?
Have you considered saving for retirement on your own? Do you know the difference between a regular IRA and a Roth IRA?
Do you know the difference between a money market account, a bond, and a mutual fund?
Do you know what a junk-bond is?

Have I made your head hurt yet?

This stuff is important ladies. No one is going to take care of us. Women typically out live men and social security isn't looking very secure. So browse the web, read a book, ask a friend, and get started!

MSN has a pretty decent column called Women in Red written by women who have (or are getting) out of some serious debt. It has some good basic money strategies and advice.

Morningstar researches and rates mutual funds. A good place to start research.

Just Googling women + investing gives you tons of results like:

Like this article from That Money Show on PBS.
This website that spells out a lot of basic investing terms and economic strategies for first time investors.

I'm not a millionaire and I will never be one. But by giving some thought to what my meager money is doing now, hopefully I won't be eating cat food in my golden years.