Women face many challenges when it comes to finances. There is a gender pay gap with women making $0.82 for every $1 a man makes. Looking deeper into the gender pay gap, there are additional factors of education, race, and other socioeconomic issues that cause even more wealth disparity.
It can be extremely difficult to build a strong financial portfolio with so many obstacles against you. Keep reading for 5 financial goals for women.
1. Budget, Budget, Budget
You need to have a clear understanding of how money flows in and out of your accounts. Having a budget and spending plan allows you to keep track of your cash flow and set money aside to pay down debts and allocate to savings. Utilizing and sticking to a budget gives you full control of your finances so you can set yourself up for success.
2. Build Your Credit
While building credit takes time, there are steps to take to help you. Having a good credit history and credit score will open a lot of doors for you financially and allow you to take out loans, get credit cards, and get lower interest rates. Here are a few steps to start building your credit report:
- If needed, become an authorized user on an existing credit card account of someone you trust. This allows you to benefit from their good credit while not being held liable for any charges on the card.
- Open a secured credit card account. These cards are great for people who need assistance building their credit. They will typically require a security deposit in exchange for the line of credit.
- Get credit history for paying your bills. There are several different programs that allow you to connect your bank account, identify qualifying bill payments, and add your payments to your credit history.
3. Preparing for the Future
Planning and taking initiative are the keys to creating financial stability. You start saving for retirement and creating an emergency fund as soon as you can. For retirement, time is on your side. The more time that you allow for your retirement savings to compound interest, the more your savings can grow. It is also important to be prepared for any emergencies or unexpected expenses. For an emergency fund, you should aim to save 3 to 6 months' worth of expenses in case of an unexpected loss of income or a surprise bill.
4. Pay Down Your Debt
Carrying debt can be inhibiting you from reaching greater financial well-being. Making only the minimum monthly payments on your debt can delay the elimination of debt due to the mounting interest. By tackling your highest interest debt first, you will save money in the long run. Even if you must make some spending changes, it will be worth it to pay off the debt.
5. Utilize Insurance
To protect yourself and your family, make sure you have the right insurance coverage in place. This includes health, life, disability, and liability insurance. If you have a primary earner in your home, be sure that there is enough life and disability insurance to assist in supporting the family if something were to happen to them. If there is an at-home spouse, they will also need enough life and disability insurance to cover the costs associated with the activities they provide.
It is important to remain in control of all your finances to elevate your financial well-being. If you need help gaining control of your finances and getting to great financial shape, our advisors are here to help. Give us a call today to set up a consultation.