Sat May 25 2024, by Tyler Gardner

Savvy Financial Strategies for Women in Their 20s to Become Millionaires

If you are a woman in your 20s and you want to be a millionaire before that finance bro sitting next to you, then you need to do the following three things right now.

1. Contribute 15% of Each Paycheck to Your 401k

Most men are told to put 10% in, but you will live longer. On average, women make 82 cents to the dollar and are out of the workforce for 11 and a half years versus only 16 months for men. Therefore, if you have access to a 401k right now, do every single thing you can to contribute and get that company match.

2. Start Today, No Matter the Amount

If you can’t do 15%, aim for 1%. The habit matters way more than the amount. By investing in your twenties and then halting further contributions, you may still wind up with more in retirement than those who begin investing in their thirties and must continuously invest to catch up with your progress.

3. Establish an Emergency Fund

Ensure you have a three to six month emergency fund, but avoid letting it sit in cash. Go directly to NerdWallet or Bankrate to look for money market funds. Currently, you can find relatively safe money market funds returning 4.5%. I may not be able to make you act, but the choices you make today will invariably impact the person you become tomorrow.