Even though it might be hard to admit, the truth is, more women struggle with finances than men, according to recent statistics. However, in this day and age where women are given more opportunities in the workplace, they should feel more empowered to take financial risks as well as make sound financial decisions. Women should also help and support each other when it comes to financially planning for the future.
One of the major reasons why women have more financial challenges than men is because of the wage gap. In 2016, the Bureau of Labor Statistics reported that women earn 83% of men’s salaries. For instance, if a man earns $871 per week, a woman earns only $719. Hence, the smaller wage makes women more apprehensive when it comes to investing their money. Despite this disparity, it’s important for women to take a more active role in managing their finances, such as making investments, taking advantage of insurance savings, and eventually, having a solid retirement plan.
Check out these following tips to help you achieve your financial goals:
Work Toward a Debt-Free Life
The worst thing that can happen when you’re trying to save money or increase income is to be tied down with debt. As for every individual, it is of crucial importance to be debt free. As much as possible, stay out of debt, which means you have to control what you buy. According to the Financial Industry Regulatory Agency, women are more likely to carry a credit card balance, only pay the minimum, and be charged late fees. Credit card debt is a very deep hole to get yourself into. Whenever you can’t pay your balance, you continue to be charged interest as well as late fees, and the payment seems never-ending.
Manage Your Expenses
There is a reason why women tend to carry a balance more than men, and that’s because women tend to fall prey to retail therapy more often. Shopping and unnecessary spending are top reasons for incurring credit card debt, or simply not being able to save. Shopping addiction is defined as wanting to buy or constantly thinking about buying something that it impairs the life of an individual. It is easy to fall victim to “retail therapy,” but one must always remember to live within your means, or better yet, live below your means. Whether with a money management app like MINT or an excel sheet, keeping track of your expenses is always a good way to manage your money as you can set aside more of your savings than simply paying off the money you owe the bank.
Plan, Save, and Invest
If you’re personally monitoring the money that comes in and out of your bank account, you’ll have a better understanding of your financial situation, and how you can achieve your financial goals in the future. With that said, start taking action now. Look into possible investment options for you like stock investments. You can also read more about passive income like insurance plans that pay off dividends after some time. Bear in mind that you have to grow your money whenever you can, even if you have a full-time job to worry about.
Working with money can be tricky, which is why you need to put time and effort into studying what investments will work for you. Your money won’t grow overnight and sometimes, your investments might fail too. But the important thing here is that you learn to manage your own money, set aside some for your savings, and set aside a portion for investments and possible business opportunities.
Now is the time to take control of your finances, and if you need help, don’t hesitate to ask help from fellow women. Having a support system will keep you motivated and empowered to reach your financial goals.