Zina's blog

Believe it or not, you can do this easily, simply by investing in Index funds. This is the most well-kept secret in money management. Why? Well, it’s because no one on Wall Street makes any real money off Index funds, regardless of whether they are the some of the most appropriate investments for most people.

It’s really just two steps:

1. figure out your asset allocation, then
2. buy index funds to fill in your asset allocation

Has anyone ever watched the show “Who Wants to be a Millionaire?” I’m guessing that if you haven’t been living under a rock for the last ten years, the answer is yes. When given the choice of how to become a millionaire, it seems folks would go for the easy route: game shows, lottery or bank robbery. My cousin plays the weekly lotto as a path to financial independence. It hasn’t worked for her yet, but she’s hopeful. No one ever told her about the 80-million to ONE odds of striking it rich. Now honestly ladies, I’m only being absurd to prove a point.

No, this isn’t the fund that you dip into because you came across an unbelievable 75%-off, sale of your favorite designer, though I do suggest starting a fund for that too – call it the designer fund. But I digress. The emergency fund is the fund that keeps you from becoming homeless when the unexpected occurs.

I’m talking about the unexpected job loss, medical emergency or other major disaster you’ve never dreamed of that negatively impacts not only your mental health, but also your financial health. The best you can do is to prepare for emergencies by having an emergency fund.

I've read countless studies that tell us women are more at risk of financial disaster. Whether it's due to the fact that we don't earn as much or we live longer or spend more time out of the work force, it all leads to one conclusion. We need to start planning earlier and investing more aggressively than we've done in the past.