Women & Finances

5 TIPS TO SECURE YOUR FINANCIAL FUTURE

For many years, women were known to sit on the sidelines and leave most of the financial planning and budgeting to their male counterparts. Unfortunately, this would leave them at a huge disadvantage if they happened to become widowed or divorced. Most would have little to no knowledge of what assets were available or how to access them.

However, that trend is shifting. According to wealthtrack.com, women now control 51% of personal wealth, and as many as 96% have a primary or shared responsibility for family financial decisions.

Even though women are playing a larger role, there’s still a gap in how men and women view and handle money. It’s time for that to change. Waiting until widowhood, divorce, or another life-changing event to educate yourself on your financial situation can exasperate an already stressful situation.

Studies have revealed that after a divorce, a wife’s standard of living drops up to 27%, and many are left struggling to make ends meet. This decrease could be because women who become mothers can lose years of career development, and the cost of divorce can consume much of the cash and assets acquired during a marriage.

Then consider retirement. A survey done by U.S. Bank shows that women tend to retire with a staggering 66% less than our male counterparts and are 80% more likely to be impoverished in retirement. Why is that? Women tend to hold 71% of their assets in cash and invest 40% less than men. Women are typically less engaged with personal finance and start investing later in life, many waiting until age 35 or older.

Ladies, the numbers show that we are mastering the art of making money. Still, the odds are high that we will be left with financial decisions and responsibilities beyond merely making money at some point in our lives. It’s time to educate ourselves and learn how to use our income to create wealth and change those statistics.

What are some things that you can do to prepare?

1. Know where your money is and how it’s being spent.

2. Continue your education and career development, so you’re prepared if you find yourself in a situation as the sole provider.

3. Listen to financial podcasts and learn how to invest.

4. Contact a financial planner/ advisor you can trust.

5. Keep records of assets, insurance policies and accounts.

Don’t let a lack of knowledge leave you a victim. Educating yourself on finances and investments can only benefit you and your family. It does take discipline and consistency, but waiting won’t make it easier. So let’s grow our confidence and start investing and planning like the bosses we are!

Written by: Holly Culpepper

Follow @hollyfitnessexpert