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So what specifically does she advise to help women grow their wealth?
And, better yet, which parts can women implement on their own?
But the basics everyone can do, Carbonaro said.
Here are fivewealth-building basics that women can put into practice today.
Know your numbers and manage your numbers, said Carbonaro.
If you dont know what they are, they are probably in the red.
You need extra money left over every month.
Thats how you create financial freedom.
Wealth building, she explained, is created from the excess in that budget.
While budgeting is crucial for both genders, its unfortunately not something she sees women do regularly.
But, as Carbonaro likes to say, Money equals power, and women need more of both.
Avoid Carrying Credit Card Balances Past 30 Days
Credit cards are not free money, Carbonaro said.
Thats not the case, she said.
Pay it off in full.
simply by having a good credit score.
This is important for both men and women, Carbonaro added.
They need their own financial identity.
Carbonaro suggested online tools like Credit Karma or Experian to model ways to achieve good credit.
At least once a year, run that number.
The number should be increasing over time.
If not, something is wrong.
One needs to know how much money they have if they want it to grow over time.
If a woman is partnered, Carbonaro said she should be tabulating a joint net worth with her spouse.
Its too easy to hide things when finances are separate.
Money is the second biggest reason people get divorced; the first being actual infidelity.So be transparent.
Put as much money into your 401(k) as you might, she said.
Whatever the company match is, put in what they put in.
And if you dont have a plan via work, put money in an IRA.
Though she cautioned against stay-at-home mothers completely giving up their careers.
Stay-at-home moms are at risk, she explained.
Shes given up her career and her economic contribution to the house.
If a man walks away, stay-at-home moms are vulnerable.
Also, women are more conservative with investments, she said.
Women retire with 2/3 less than men.
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