{"id":4754,"date":"2015-07-19T06:18:20","date_gmt":"2015-07-19T10:18:20","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=4754"},"modified":"2015-07-19T06:18:20","modified_gmt":"2015-07-19T10:18:20","slug":"small-attitude-adjustments-big-money-impact","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=4754","title":{"rendered":"Small Attitude Adjustments, Big Money Impact"},"content":{"rendered":"

<\/h1>\n
<\/div>\n
\n

\"Kerry-Hannon-head-shot-220x300\"A fact of life they didn\u2019t tell you middle school: You\u2019ll likely be flying solo at some point during your retirement, if not at the start. \u201cFrom the age of 65 to the end of life, most American women are single, and if they lost a partner, their standard of living drops,\u201d says Kerry Hannon<\/a>, a retirement and personal finance expert and author most recently of Love Your Job: The New Rules for Career Happiness<\/a><\/em>. Yet on any given day, \u201cwomen will talk about health before they\u2019ll talk about wealth,\u201d Hannon notes. Making financial security a priority in our thoughts\u2014as well as a part of our conversations\u2014is one attitude adjustment we all need to make. These five will also help ensure that the retirement years are truly golden:<\/p>\n

#1 Get self-centered<\/h2>\n

Nature or nurture, women tend to put the needs of others first, and as a result, we experience career interruptions that lead to our missing out on raises, years of contributions to employer-sponsored retirement plans and reported earnings that will affect the size of our Social Security checks down the line. To even begin to make up for the losses, \u201cyou need to pay yourself first\u2014which means put money in savings before you do anything else with your paycheck,\u201d Hannon says. And when it comes to opportunities at work, which that taking-care-of-yourself attitude could position you for a promotion and higher salary, \u201cby all means, as Sheryl Sandberg put it, lean in.\u201d<\/p>\n

#2 Stop using fuzzy numbers<\/h2>\n

\u201cYou need a solid understanding of how much you spend now to determine exactly how much you\u2019ll need later in life,\u201d Hannon says. You also can\u2019t make sure you\u2019re living within your means unless you run real numbers. Hannon recommends going to Mint.com and YouNeedaBudget.com for help tracking your spending and penciling out a budget.<\/p>\n

#3 Be bold about saving<\/h2>\n

Afraid that they\u2019ll need the money, many people who participate in their 401(k) plans allocate just fractions of their paycheck to it. \u201cBut at the very least, you should be putting in the 4% to 6% that employers typically require to get the maximum company match,\u201d Hannon says. \u201cIt\u2019s pre-tax, so you\u2019ll hardly miss it.\u201d An even better target savings amount: 10% that you eventually dial up to 15%\u2014or more, if you\u2019re getting a late start.<\/p>\n

#4 Invest with confidence<\/h2>\n

\u201cWhile most women are completely comfortable dealing with their daily finances, many are intimidated by stocks and bonds,\u201d Hannon observes. The only solution is to get educated about investing and retirement planning. Hannon recommends checking out Iinvest.org, WiserWomen.org, Learnvest.com and Dailyworth.com\u2014the latter three specifically geared to women. It may also be helpful to have a professional explain things. If you do go the financial-advisor route, Hannon suggests hiring one that charges a flat fee. Interview a few (there are searchable databases at sites of the National Association of Personal Financial Advisors, the Financial Planning Association and the Certified Financial Planner Board of Standards), find one you like and don\u2019t be timid about asking questions. It\u2019s your money, after all.<\/p>\n

#5 Look forward to your 50s<\/h2>\n

In order to keep on working and earning, many women shift career tracks as the nest starts to empty out, or a life or health crisis pushes them to find work with meaning or a job that they\u2019re passionate about. \u201cIt often takes about three to five years to get something new going full speed, so at 50, you might start thinking about what you want to do when you\u2019re 55,\u201d Hannon says. \u201cBegin to add the necessary certifications or degrees, research and even moonlight to see if it truly is something you want to do in this chapter.\u201d<\/p>\n

Also, since money is often the biggest stumbling block to changing careers\u2014you may have to take a pay cut\u2014you should \u201cget financially fit, sock away savings, pay down debts and perhaps downsize your home,\u201d Hannon advises. You\u2019ll feel challenged during those transitional years but remember, \u201cyou\u2019re not reinventing yourself; you\u2019re redeploying the skills you already have in your kit. It\u2019s also an exciting time, so go slow and take it in baby steps,\u201d Hannon adds.<\/p>\n

Finally, to get your friends to join you in thinking and talking about money matters, Hannon recommends adding personal finance books to your book club\u2019s reading list. Her top picks: The Charles Schwab Guide to Finances After 50, Get a Financial Life<\/em> and Jonathon Clements Money Guide 2015<\/em>.<\/p>\n

\"download\"<\/a>Kerry Hannon will be leading panel discussion \u201cReviving a Stalled Career\u201d at the 2015 Texas Conference for Women<\/a>.<\/em><\/p>\n<\/div>\n

\"Share<\/a>