August 14th is National Financial Awareness Day.
If managing money was easy, we’d all be Uncle Scrooge, backstroking pools of gold coins and bragging about our cushy retirement plans.
But if the F-word (finance) makes you uncomfortable, you’re not alone. A recent study survey Nearly 4 in 10 women were found to feel stressed about their financial situation and less than 2 in 10 women felt on track to achieve their financial goals.
One reason for stress is that women earn less than men and less money means fewer opportunities to save and invest.
Today, in 2024, women take 84 cents per dollar compared to menFor perspective, a woman would have to work full-time from January 1, 2024, to March 12, 2025, to earn what a man earns in a year.
The money gap extends across all racial and ethnic groups, but Black and Latin Women experience the largest wage gap (66 cents and 62 cents per dollar, respectively) compared to white men.
So, yes. Talking about finances can be uncomfortable, but it’s important to know where you stand and how you can move forward, considering that women are at a disadvantage when it comes to economic gains in this country.
Healthy Women recently Collaborated with Savvy Ladiesan educational organization that empowers women to take control of their finances, to discuss tips for financial health and independence.
Here are five tips you can start implementing right now to get into financial shape.
1. Be open and honest about money.
The first rule of finances is that you have to talk about them. That means being honest with yourself and/or your partner. Money issues are one of the leading causes of divorce in the U.S., so putting everything on the table is beneficial for anyone in a relationship, regardless of how long they’ve been together. If you don’t know how to broach the subject, try a Budget Worksheet for Couples where both answer questions about spending habits and individual goals. Or take your own test to help identify your money personalityFrom there, you can determine what your goals are (paying off debt, saving money, etc.) and the steps you can take to achieve your financial goals.
2. Take stock of your finances.
Take an hour to write down how much you earn, how much you spend, and what you spend it on. Many smartphone apps make it easy to enter information and give you a clear picture of your financial situation. Then, compare it to your goals and you’ll be able to create a reasonable budget that you can stick to.
Read: Taking charge of my finances gave me strength during loss >>
3. Start investing for your retirement.
If your employer offers a 401ksee if they match the contributions and go from there. (Try this 401k Calculator Even a small amount from each paycheck into your 401k can help you build a more secure financial future. If you don’t have a full-time job or your employer doesn’t offer a 401k, there are other options you can consider, including self-employed 401s and individual retirement plans (IRAs).
4. Save for an emergency fund.
Even if you’re paying off debt or feeling financially strained, put some of each paycheck into a savings account until you’ve covered at least three months of expenses. That way, if something happens — like a divorce, a medical emergency, or an unexpected move — you’ll have the peace of mind of knowing you’ve got your back in the short term while you figure things out.
5. Make financial wellness a priority.
Just like you would schedule your annual physical or attend a yoga class, schedule an appointment to review your finances with an advisor or yourself. Add it to your online calendar or write it down physically, whatever works best for you. Once it’s part of your routine, managing your money won’t feel overwhelming, like you’re facing a monster you can’t control.
Articles from your site
Related articles on the Web
