Personal Finance Tips for Women

Personal Finance Tips for Women

August 22, 2022
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Unfortunately, women have been left behind financially when compared to men. The gender pay gap still exists in the United States, although it has decreased in the past several years. Based on the U.S. Census, in 2019 the national earnings gender wage gap was $10,150. When in reference to retirement savings, women have an average of $57,000 saved while men have an average of $118,000. Since barriers are still in place working against women reaching financial wellness, it’s important for women to know how to protect themselves financially and the steps to take to financial wellness.

 

Build A Budget

A monthly budget can get your finances on track. By outlining a budget, you can spend within your means and prioritize your financial goals. You don’t have to be handcuffed to your budget; it’s simply planning out how you will utilize your money based on your financial goals. To begin building a budget, you can define your income, analyze your expenses, and evaluate your spending.

 

Start An Emergency Fund

Emergency funds are there to protect you in the event of loss of income or an unexpected expense. When starting your emergency fund, set the goal to save up three to six months’ worth of expenses. To not have such an overwhelming goal that feels unattainable, break that number down and track your progress to keep you motivated. Having this financial safety net can give you peace of mind.

 

Prioritize Saving For Retirement

Women statistically have less in retirement savings than men and live longer than men, making it more likely that women will outlive their retirement savings. To prevent this, prioritize saving for retirement. You can contribute to your employer-sponsored 401(k) to take advantage of employer matches, open a Traditional or Roth IRA for the tax benefits, or start saving with a Health Savings Account for health care costs in retirement.

 

Take Advantage Of Investing

Investing is the perfect vehicle to grow your savings and combat inflation. According to BlackRock, the average female investor keeps 68% of their portfolio in cash and cash equivalents due to their lack of confidence in investing. Harnessing the powering of investing is what can take your finances to the next level.

When investing, you can determine your level of involvement, investing risk, and your goals. If you want to be an active investor, you’ll be involved in the buying and selling of assets. You can choose to be an aggressive investor with a higher-risk portfolio or a passive investor with a low-risk portfolio. However, it’s important to keep in mind that with higher risk come higher rewards. When investing, you can replicate your financial goals with your portfolio. If you have short-term goals with reach, you can utilize money market accounts or certificates of deposits. For long-term goals, you can invest in long-term investment vehicles such as real estate, bonds, and more.

Take charge of your finances and forge your own path to financial wellness. If you need assistance in achieving your personal finance goals, our financial advisors at Maven Bridge Capital are here to help. Schedule a consultation with us today to get started.  

Sources:

https://www.cnbc.com/select/financial-steps-for-women/

https://www.moneygeek.com/financial-planning/resources/womens-guide-to-financial-independence/

https://www.census.gov/library/stories/2022/03/what-is-the-gender-wage-gap-in-your-state.html

https://www.annuity.org/retirement/retirement-statistics/

https://www.fool.com/research/women-in-investing-research/