Financial independence is a goal that every individual, regardless of gender, aspires to achieve. However, women often face unique challenges when it comes to their finances. In this Wealth Wisdom article, we address three crucial questions that women should consider in their pursuit of financial independence and explore why consulting a financial advisor can be very valuable in this endeavor.
What unique challenges do women face when it comes to their finances?
Women often face financial challenges when it comes to their finances. These include the gender pay gap, having less money in short- and long-term savings, taking time off work for caregiving and having a long life expectancy. I’m not sure if this is factual or necessarily unique, but what about being a single parent, getting divorced or becoming a window washer?
What career advice should women follow to make sure they are maximizing the amount of money they earn?
Education and negotiation: Educate yourself on salaries both in your area and nationwide. Negotiate other items (not just salary) with your employer that can help with your financial situation, like a student loan or retirement plan, a match for healthcare, paid time off or further continuing education.
What can women do to boost their savings rate?
Starting with your retirement plan is the easiest; most 401(k) plans have a feature to opt in on an annual percentage increase every year or adjust your IRAs to allow for the IRS maximum contribution when applicable. Create an automatic draft from your checking account to your savings or investment account. If applicable, you may be able to do this directly through your employer’s payroll provider. Finally, having a financial plan and working toward your goals with the assistance of a financial advisor helps reinforce your savings and spending plan.
Women should not feel burdened by these challenges. Instead, they have the power to proactively address them. By staying well-informed, mastering effective negotiation skills, and adopting intelligent savings strategies, women can significantly improve their financial well-being. Also, seeking guidance from a financial advisor can be an invaluable resource in overcoming these obstacles, ultimately leading them towards financial independence with confidence.
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This article was originally featured on MoneyGeek and written by:
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