How much men and women are paid has been a hot topic for a long time and although the gender pay gap has narrowed over the past few decades, women still face some challenges in their quest for financial wellbeing.
Globally, a woman earns an average of $100 for every $140 a man earns according to Accenture’s research, which means ladies are also likely to be saving a lot less money.
When it comes to retirement, women lag behind in pension savings and are more likely to rely on their male partner during old age.
We take a look at the 5 financial moves women should make sooner rather than later with a view to improve their financial position and increase their wealth.
Women love talking to each other; they resolve many issues this way. Reading about money matters and then discussing with other women (or men) is bound to make financial information easier to understand and implement. Research and seek referrals about websites, people, and organizations that can help you get the best out of your money.
Unexpected expenses could hit your savings hard and even force you into debt. Leaving things to chance, and thinking ‘this will not happen to me’ can lead to financial worries and burdens in case of an emergency. Experts say your emergency fund must be big enough to cover your living expenses for at least 3 months.
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Savings are good, but investments are better! Women are risk-averse by nature, and see investing as a risky business; whereas in comparison, men are more willing to take small risks for financial rewards. Reports suggest that women are missing out on as much as $32,000 over 20 years by not taking the opportunities to invest in stocks and shares/equities. When it comes to retirement and pensions planning, the sooner you start investing into your pension, the more time your nest egg gets to mature into a sizeable pot.
Risk averseness can be both good as well as bad. The key to financial success is to take measured risks, and the ability to measure risks can come only once you understand the fundamental principles of finance well. Do some research about financial planning, or perhaps seek advice from those qualified to offer it. Get over your fears about investing; the risks are much smaller compared to the rewards if you plan your investments well.
If you want to endow your wealth this year, require help in planning your financial objectives and course of action, or just want to assess your net-worth and find out about financial planning products that are available in the market, it is advisable you ask around for a qualified financial adviser and seek advice to make the best decisions about your hard-earned money.