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SINGLE AND FINANCIALLY SATISFIED

Only 30 percent of women describe themselves as "confident" or "a risk taker" when it comes to managing their finances, according to a survey of white, African-American, Asian-American, and Hispanic women age twenty-five and older commissioned by the American Institute of Certified Public Accountants.

This lack of confidence often results in women not investing at all or investing too conservatively.

Want to be financially satisfied whether you have a man or not? If so:

• Set financial goals for yourself. What do you want to do with the money you make -- buy a home, car, take vacations every year? What will it take for you to live happily ever after financially? Will you be happy to work until you're sixty-five, seventy-five, or eighty? Do you want to send your children to college? How do you envision your retirement? Consider these goals not with a man in mind, but in terms of whether you can achieve them on your own.

• Get a sheet of paper and write down your goals. Then go about making those goals a reality. Don't just say you want to buy a home. Attend a first-time home buyer's seminar. Talk to someone at your bank about the many mortgage options available.

• Set short-term goals (establishing a three- to six-month emergency fund), intermediate goals (saving for a down payment on a home), and long-term goals (saving for retirement).

• Figure out just where your money is going, which will require doing a budget. (See chapter 16 for more information on how to budget.)

• Develop a financial contingency plan. Do some estate planning so that your loved ones will know how to handle your assets after you die. I know this is a tough topic to handle. Who wants to plan for her death? But you must, especially if you have children. At a minimum, you'll want enough savings to cover your funeral if you're single. If you have children, you'll want to leave at least enough to replace your earnings for a certain period of time, to cover the costs of hiring someone to fulfill your obligations at home, and to pay for your kids' college education. Many professionals with families seek life insurance protection equivalent to eight to fifteen times their annual earnings to support their families adequately. (See chapter 26 for more information on buying life insurance.)

• Get a will. And yes, you should have one even if you are single. If you die without a will, a state court will step in and determine how your assets will be allocated. If you're a single mom with minor children, the same court will decide with whom they will reside. And remember, if you're in a serious relationship -- but not yet married -- your significant other may have no rights to your property, unless your will directs otherwise.

• Get disability insurance. Many single women make the mistake of thinking life insurance is more important than disability insurance. Yet these women are more likely to become disabled. Keep in mind that life insurance is supposed to take care of your dependents should you die. If no one is depending on your income to survive, then you don't need life insurance. Disability insurance may be available through your job. If you already have an individual disability income insurance policy, update it annually to reflect any promotions or large increases in personal income.

• Make sure you're participating in your employer's retirement savings plan. Make a large enough contribution to take advantage of any matching funds your company may offer. If you don't, you're leaving free money on the table. If your employer doesn't provide a retirement plan such as a 401(k), then be sure to max out your contribution to an individual retirement account or other tax-qualified personal retirement instrument. It's also worth noting that changes to the tax code allow those over age fifty to save more in their 401(k)s and IRAs -- what's referred to as "catch-up" retirement savings.

• Pay attention to small expenditures. For a month, write down everything you purchase, and determine those expenses you can live without. Invest the money for those non-essential items in mutual funds. At some fund companies, you can open a mutual fund account and contribute as little as $50 a month. Most important, you'll be establishing a regular pattern of saving and investing. And remember, you don't have to be a total miser; instead of eating out five times a month, try cutting back to two.

• Remember, cash is better than credit. Stick to having one credit card for emergencies and to build good credit. Otherwise, limit your purchases to cash. If you do use credit, pay the bill off every month. If you can't do that, you're in credit card trouble. In general, use credit cards only if you plan on paying off the entire balance every month.

It's wonderful if you do end up finding the right man to marry. But you don't have to put your financial life on hold waiting for that person to help you make important money decisions.

Excerpted from 'YOUR MONEY AND YOUR MAN' by Michelle Singletary. Copyright © 2006 by Michelle Singletary. Reprinted by arrangement with The Random House Publishing Group.