2. Establish and maintain an emergency fund that will realistically cover three to six months’ of fixed and variable expenses. Fixed expenses (mortgage, car payment, etc.) are easy to calculate. A realistic estimate of variable expenses may require keeping a log. Once the emergency fund is in place, Lynn Ann suggests you “keep it separate from your checking account, and don’t touch it!”

3. Delay purchasing items until you are able to pay for them in cash. One of the benefits of delayed gratification is the potential realization that you don’t need the item. If you do use credit cards, waiting until you have accumulated the purchase price allows you to pay the credit card bill when it comes due, avoiding finance charges.

4. Update your will (and estate trust) when your life circumstances change. A new baby, a divorce, the death of a spouse may require a change in beneficiary designation. To ensure asset allocation as you intended, it is important to keep these documents current. Of course, Lynn Ann adds, “If you don’t have a will, get one.” It is as important as any financial planning tool.

5. Do not set and then forget your investments. “Think of them (as) a garden,” Lynn Ann advises. “You can plant seeds, but unless you water (the garden) regularly, feed it occasionally, and pull the weeds, chances are it won’t yield anything. Your investments are the same; they need attention or they won’t grow.” Money requires maintenance. Review your portfolio at least annually.

Professional brokers or mutual fund managers may shepherd your assets, but only you are able to determine what your investment objectives are. And these objectives will likely shift over time.

The priority for a young, working woman may be investment vehicles geared to long-term asset growth, and deferral of tax obligations to a time when she will likely be in a lower tax bracket. Women nearing retirement, however, have different investment objectives. They look for income generating vehicles and those that maintain liquidity.

A modern phenomenon also affects asset allocation: People live longer. Perennial wisdom of our parents’ or grandparents’ generations held an assignment of 60 percent of investment capital to stocks (considered a growth vehicle) and 40 percent to bonds for retirement. But the potential of a longer life implies allocating a higher proportion of funds to growth vehicles for a longer period to ensure sufficient income for retirement. According to Lynn Ann, some people spend more years in retirement than they do working.

But what if you make a bad investment? “Don’t be afraid to cut your losses,” says Lynn Ann. The mistake would be holding on, waiting for the investment to reverse. Rebalance your portfolio to reflect your current objectives.

Lynn Ann acknowledges some women may be averse to taking the steps necessary for financial freedom. But, “whether married or not,” it is important to be involved in the financial aspects of life to be prepared for unforeseen circumstances. The payoff is watching your net worth grow or your debt decrease. More importantly, it is the peace of mind that comes with knowing, “I have the power to make (things) better for my family.”

Contact Lynn Ann at Smith Barney, 6565 Americas Parkway NE, Albuquerque, NM 87110, (505) 875-6209, or lynn.ann.phillips@smithbarney.com.

Diane Thome is a freelance writer and owner of DT Research, a marketing research consulting firm.