It will come as no surprise to learn that women play a large role in managing household finances. In nearly half of all American households, women take the lead on budgeting, bill paying, purchases, and other financial decisions, according to a Pew Research study. In contrast, men play that role in less than a quarter of all relationships. While that’s encouraging for equality, it’s equally important for women to take charge of their own financial futures. With this being Women’s History Month, let’s look at several ways you can boost your financial future.
Why Financial Wellness Matters for Women
The numbers tell us that women face some additional challenges when it comes to building their financial future. Women not only earn less, but they also face the possibility of outliving their retirement savings, which is why now is the time to jumpstart the journey to wealth. Here are five ways to fuel your financial future
- Put Yourself First. Creating and managing the day-to-day household budget is a great foundation for financial wellness. Now, apply that same focus and discipline to YOUR financial future. Your “future me” budget should focus on savings, identifying spending leaks, and exploring ways to grow your wealth. In addition, start “payments” to yourself like you would any household bill. Setting up a small amount from each paycheck that can be automatically transferred into a savings account really does add up!
- Focus on Long-Term Savings. Invest in yourself and your future. An Individual Retirement Account (IRA) is a great place to start. Just remember that investing is a marathon, not a sprint. And always seek professional advice whenever necessary.
- Plan to Retire. Even if you cannot make huge deposits toward your someday, start small and save what you can toward retirement. The sooner you start, the more compound interest will work in your favor. And always take advantage of employer-sponsored retirement plans.
- Keep Learning More About Money. Do what you can to go beyond budgeting to understand the basics of investing, debt management and retirement planning. Take advantage of our Financial Education Center or workshops, online classes, and podcasts that make learning about money interesting and fun. Just as your needs and interests constantly evolve, so does your financial journey. That’s why continuing your financial wellness education is so important.
- Build an Emergency Fund. Unexpected expenses are the rule not the exception so your financial future plans must include an emergency fund. It’s recommended to set aside anywhere from three to six months of living expenses into a special “emergency only” savings account. This helps protect your finances whether there’s a furlough, a medical emergency or other unexpected challenges life throws your way. In addition to paying yourself, automate a set amount that goes into an emergency savings you don’t touch. Remember small deposits add up. Saving $50 a month for a year can add $600 to an emergency fund.
Prioritizing Your Financial Future Made Easy
Take time to celebrate your progress and achievements as you navigate your financial journey to wealth. Remember, we have the education resources as well as savings options and financial service professionals to help you reach your financial goals.