If you’re like most women, you value — and respect — your relationships with others. However, when it comes to money, you may have a love-hate relationship at best. Consider the following important financial statistics:

• Only half of women say they spend less than they earn each month*

• Only a third of women have an emergency savings fund large enough to cover a few months worth of living expenses*
• Only a third of women pay their credit card bill in full each month*

There’s no question these are concerning figures. Fortunately there are things you can do to improve your finances today for a better tomorrow. “It’s important to have a clear understanding of your finances,” says Amy O’Leary, Financial Center Manager with Fifth Third Bank. “Take the time to sit down and review your money so you know where it’s going and if there are any steps you can take to improve your situation.”

Sound finances start with a budget
It can’t be stressed enough — the foundation to sound finances is a budget that fits your lifestyle. Write down all of your monthly financial obligations and subtract that amount from your monthly income. The money that’s left is what you can spend on flexible expenses, such as groceries and entertainment. If your financial obligations eat up more than 60 percent of your monthly income, you may want to consider looking for areas to cut back, such as finding a cheaper place to live or carpooling to save money on gas.

Prioritize a debt-free existence
Knowing exactly how much money you have to spend each month is important for setting yourself up for a debt-free existence. O’Leary recommends you stick with the following rule: “If you don’t have the money, you shouldn’t buy it,” she says. “You can use your credit card, but only spend what you can afford to pay back within one month.”

If you’re one of the many Americans in debt, there are things you can do to dig yourself out. It sounds basic, but start by not adding to the debt you already have. Follow it up with making more than the minimum payment each month. Paying as little as $20 more on each bill every month can help you pay off your debt faster and significantly reduce the amount of interest you pay over the long term. To learn more about getting out of debt, read “Make Debt a Thing of the Past.”

Build your emergency savings’ fund
To help you avoid resorting to credit in an emergency, build up a savings fund. Even saving $5 or $10 each week can add up over time. You should aim to eventually save six to 12 months worth of living expenses. Fifth Third Bank offers a Goal Setter Savings Account to help you reach your savings goals. There’s no fee or minimum balance to open the account and after you reach your goal, Fifth Third Bank will double the interest you’ve earned over the life of the account. To learn more about building a savings fund, read “Five Ways to Start Saving Now.” 

Fifth Third Bank offers Free Financial Reviews to help you get a better understanding of your finances. In a one-on-one meeting with a financial professional, they’ll go over your budget, savings and other accounts with you, and create a plan to help you reach your financial goals. “It’s always a good idea to review your finances, regardless of how much money you have,” O’Leary says. “Be proactive and get a better understanding of your money so you’ll be in a better position to reach your financial goals.”

To learn more about women and money, contact Fifth Third at (866) 475-4201 or visit 53.com.

*According to a Financial Finesse survey