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How to Invest Money, No Matter How Much You Have in the Bank


Women invest 40 percent less money than men do, according to a recent Wealthsimple survey. And it’s not just because we don’t have access to the funds (hello, pay gap) to invest: In another report, people were asked what they’d do with an extra $1,000. Women who responded were 35 percent less likely to invest it than men.

But when women actually do get in on the stock market game, they consistently earn higher returns than men, according to research from Fidelity. Yet many women still believe the stereotype that they aren’t great at investing—only 9 percent of women believed they were better investors than the guys. So at Glamour we’re issuing a challenge. Stop viewing the investment world as an old boy’s club, and go get that coin. Here are a few tips to help get you on your way.

Get in the habit

Just because you don’t have thousands of dollars to play with doesn’t mean you shouldn’t start investing your hard-earned money. “When you first start investing, establishing the habit is more important than the amount you actually invest,” says Stefanie O’Connell, a millennial personal finance author. “If you set a small amount of money aside on a consistent basis, you’ll be better able to scale your investment contributions when you’re able—when you get a raise for example. Investing as little as 1 percent of every paycheck can help you get started and learn more about investing while you do, without feeling like you have to give up a ton of money for your essential needs and short-term goals in the meantime.”

One of the best ways to start investing is with the options provided by your company. Maybe you can contribute to your corporate-sponsored 401K, or an alternative retirement plan. “You can elect to have a small percentage of your salary automatically set aside from each paycheck,” says O’Connell. “Even if you don’t have this option through an employer, you can set up regular, automated contributions on your own into accounts like a ROTH IRA. Automating is helpful because you don’t have to think about it. And when the money is automatically invested, you’re less likely to think of that money as available for spending.”

Find the right plan for you

There are a huge number of investment options to choose from. Whether you decide to chart a retirement plan, join a full-service brokerage firm—where they’ll guide you on how to invest money and advise you on stock options—or take a more DIY approach, the options are (almost) endless. But for first-time investors, Nicole Lapin, founder of The Money School, recommends working with a discount brokerage, which is a firm that buys and sells for you at a lower commission rate, but cannot give investment advice. “I’d go with a firm like E*Trade, TD Ameritrade, or Fidelity,” says Lapin. “These are typically do-it-yourself operations, and are much less expensive. For each trade you make, it’s only around a $4 to $5 fee. They’re a good way for investors seeking a low-cost, self-directed approach to investing to get in the door.”

And when you’re on the hunt for your brokerage firm, investing platform, or savings plan make sure you’re not biting off more than you can chew. “Most funds require an initial minimum investment that can vary between $500 to $5,000, which often discourages women from participating as it creates a barrier of entry,” says Kassandra Dasent, a financial consultant and owner of Minding Your Money, LLC. You don’t want to invest all of the money you’ve set aside during your first time out—this is a habit you’re getting into, remember!—so don’t go with a plan that will make you invest $2,000 to get started, if that’s all you have saved up. Consider your options. “Research online brokerage firms that will waive account minimums, if the individual is willing to set up automatic monthly investments, which can be as low as $25 per month,” says Dasent. “The latter option allows their money to be put to work immediately in the markets and encourages them to invest consistently.”

Stay on top of your portfolio

Once you pick a plan and enroll in automatic monthly investments it doesn’t mean your work is over. The financial landscape is constantly changing, and the stock market can be a volatile place. One day Snapchat is one of the highest stocks on the market, the next it’s plummeting. If you take your eyes off the prize, you could feel some serious consequences. That doesn’t mean you should buy and sell every time your investments rise and fall—riding out those swings can sometimes be the best course of action. But you shouldn’t ignore things completely. “Every year, if not more often, you should rebalance your overall investment portfolio to get your portfolio back in balance with the original allocation you determined fit for your goal and risk tolerance,” says Brittney Castro, founder and CEO of Financially Wise Inc. “When market volatility picks up, your portfolio can get unbalanced, which means you may be taking more or less risk than you think, hence more regular rebalancing may be needed. Work on determining the best rebalance strategy for your financial situation.”



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Chrissy Metz: From 81 Cents in the Bank to Equal Pay on 'This Is Us'


The anecdote has reached mythic proportions: Before Chrissy Metz, 38, made it in television, she lived with six women in a cramped two-bedroom apartment. She had to borrow gas money to get to auditions and lived on a steady diet of dollar-store ramen noodles, all while racking up massive debt (nearly $12,000 worth.) When fate at last intervened, with Metz landing the role of Kate Pearson on This Is Us, she had 81 cents in her bank account.

But while the gig was a personal game-changer, Metz was the rookie on set. In the first and second seasons, she made much, much less than her cast mates. While she earned $40,000 per episode, veteran actor Milo Ventimiglia took home $115,000, according to The Hollywood Reporter.

Metz didn’t make a fuss. After all, even earning a steady paycheck as an actress had seemed so inconceivable. She’d grown up watching her mom skip meals. Before she landed This Is Us, she collected unemployment checks. And even now, she’s one of the few plus-size women with a leading role on television. Metz felt fortunate just to have a seat at the table. “For the first two years, I thought, ‘Oh I should just be grateful,’” Metz tells Glamour. “But then I realized, ‘I think I’ve done ok, and now it’s time [to negotiate].’”

After the second season of This Is Us, with two Golden Globe nominations under her belt (and the collective chorus of women who’ve stood up to demand more in here ear), Metz decided she was done just being grateful. “It was everything, collectively,” she says. “Our audience’s [support], other women standing up for themselves, and just feeling like, ‘Ok, I’ve been recognized for the work that I’ve done—not entitled, but recognized, and maybe it’s ok [to ask].’”

With the tremendous success of This Is Us—it’s the biggest drama on broadcast TV—Metz’s cast mates also came to the conclusion that it was time to revisit their contracts. But this time, the beloved Pearson clan banded together. Now Ventimiglia, Mandy Moore, Sterling K. Brown, Justin Hartley, and Metz receive identical checks. What does equal pay mean to Metz? A cool $250,000 per episode, which amounts to $4.5 million per season, according to The Hollywood Reporter. Metz credits her co-workers for the tenor of the process: “We all understood where everyone was coming from. It felt really respectful and professional and nice to know that if I need to, I could do it again.”

But the newfound zeros at the end of Metz’s paycheck haven’t changed her financial philosophy. She doesn’t have to reach too far back in her memories to recall what it felt like not to be able to afford rent, let alone a new pair of shoes. Lately, she’s trying to feel comfortable living in a “gray area” in relation to her wealth. “It’s about not being so tight that you’re not enjoying what you worked really hard for, but also not spending all of it just because you have it,” she says. “It’s sitting in that gray area of like, well, this is what I’ve learned from my past experiences, my parents, and this is what I’m going to have to do in order to have a different life.” For Metz, this means evaluating her purchases. While she’s reluctant to spend a lot on more disposable items, like clothes, Metz has built a beautiful home for herself—and fills it with the kind investment furniture she never had as a child.



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How Your Relationship Status Affects Your Bank Account


We’re going to give it to you straight: “After about 10 years, married people have about four times as much wealth as single people,” says Jay Zagorsky, an economist at Ohio State University who’s studied marital wealth trends. “The best thing you can do to increase your wealth is to get mar- ried—and stay happily married.” Wait, what? In 2018, are the finances of coupledom still so…retro? In some ways, yes, but needless to say, that doesn’t mean you should find the closest available single person and say your vows. Here’s what to know about how your relationship status, whatever it is, can affect your net worth, and how to protect yourself accordingly.

If You’re Coupled Up

What’s good: First things first—what’s up with those findings about marrieds being wealthier? It’s partially because relation- ships can provide a safety net. “A spouse can be a cushion if you lose your job or hit a rough patch,” says Kerry Sweeney, vice president of women investors at Fidelity Investments, whereas single women without enough savings may fall into debt. Econ- omies of scale—everything from splitting rent to sharing groceries—can also help marrieds quickly build wealth (that’s the value of your assets like savings and stocks and property, minus any debt). Cohabiting couples get some of these benefits, though not as many since they don’t typically combine finances and can’t take advantage of things like some tax breaks and joint benefits. Insurers and lenders may see married couples with two incomes as more reliable than singles and thus might offer lower premium or repayment rates, making it easier to sock away for home buying or retirement savings. The net effect: A woman’s wealth increases about 16 percent per year after walking down the aisle.

What’s not good: Marriage typically hurts a woman’s overall salary and career advancement, dinging her lifetime earnings, according to PayScale, an online salary and compensation data company. Why? Women still tend to sacrifice their career for their spouse, say, by moving for a partner’s job or leaving work to take care of kids. That can make financial sense at the time— perhaps his salary is higher, or the opportunities bigger—but “you don’t have the same economic security if death or divorce happen,” says Pepper Schwartz, professor of sociology at the University of Washington. Stay-at-homes face an even steeper penalty: Women lose 19 percent of their lifetime earning power when they take five years off (starting at age 26) for caregiving, the Center for American Progress found.

To offset the damage: If you take time off for family needs and plan to jump back in later, keep your skills fresh. Take courses, renew certifications, or do strategic volunteer projects in your industry through sites like catchafire.org or idealist.org, says Carol Fishman Cohen, CEO of career reentry firm iRelaunch. “You have to stay current.” That shows employers you’re a serious candidate with clear value, she says.

It’s also critical to stay involved in your family finances. Only 22 percent of married women over 25 say they’re the primary money decision maker, according to a Fidelity retirement study. “You both have to be in the financial front seat,” says Sweeney, “to ensure you’re prepared for the unexpected.” Know what you own and owe as a couple, put both of your names on documents like a mortgage or insurance policy, and set money goals together.

If You’re Single

What’s good: Compared with their married counterparts, sin- gle women (with or without kids) face a smaller gender wage gap. And women with a college degree who remain single until they’re at least 30 earn up to $18,152 more a year than married peers, one study found.

Not having a partner also means single women become their own financial experts, says Mariko Ling Chang, Ph.D., author of Shortchanged: Why Women Have Less Wealth and What Can Be Done About It. “They don’t have to answer to anyone, and they realize they’re good at managing money.” Plus, singles are never surprised by a spouse’s maxed-out credit card. “You can create goals that will benefit you as opposed to you plus your family,” says New York City career expert Jill Jacinto.

What’s not good: Your wealth. Chang’s research found the average single woman has just $3,210 of wealth, compared with $10,150 for a single guy and $78,000 for married couples. (The gap is even worse for single women of color.)

To offset the damage: Since you’re solely in charge of seeing your earnings grow, Chang says to make sure you’re being paid what you’re worth by researching salaries for similar roles in your area. “I push women to negotiate as much as possible early on because that sets you up for the rest of your career,” says Jacinto. Next: Start saving now. “It’s the best thing you can do to build wealth,” says Chang. “The benefits of compounding interest will leave you better off than if you invest larger sums even five or 10 years later.” And don’t just save—invest. A Fidel- ity report found that single women are twice as likely as men to say they keep savings in cash. “That may mean you miss out on potential long-term growth,” says Sweeney.

Take advantage of employer-sponsored retirement plans or open your own Roth IRA (go to rothira.com for steps, or services like Betterment, an online financial adviser, can help you make a customized plan). “You are your own support system,” Sweeney says, “so keep your financial engine finely tuned and operating at its best.”

If You’re Divorced (or Thinking About It)

What’s good: Divorced women feel a surprising sense of happiness when it comes to money, even if they have less of it, Fidelity found. That’s because 84 percent feel more in financial control than when they were married, and almost half say they’re in better financial shape post-breakup. “Both spouses, especially the one earning less, need to think carefully about how they will live independently after divorce, which may mean lifestyle changes,” says Sweeney. Brace yourself—divorce is generally not good for the wallet. “But some of those changes can be positive,” she says.

What’s not good: Zagorsky’s research found divorced couples quickly lost the wealth they’d accumulated together and ended up worse off than peers who’d never married. The drop is tied to a few things: the loss of cost-saving measures like splitting a mortgage bill; legal fees; and payments like alimony or child support.

To offset the damage: During the divorce, find out how the assets you receive will be taxed, says Courtney M. Weber, a financial planner in Cincinnati. If you own a home, consider whether it could become an albatross: Expenses including insurance and maintenance can become too much for one person to bear. “And don’t make any sudden decisions,” says Weber—especially if they involve a major purchase. Set a new budget for yourself, and keep things lean for the first year to gauge your new normal. Adds wealth manager Sharon Blood- worth: “The real difference [in wealth] happens 10 years down the line, when alimony and child support end. Downsize quickly so you can put yourself in the best position to thrive.”

Kerri Anne Renzulli is a family finance reporter at Money.



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