Women have earned a more prominent and powerful position in our global economy, with more women in leadership positions than ever before. Women held 51.5% of management, professional and related positions in recent years (Source).
Women are marrying later, or never marrying, at a higher rate than ever, with marriages down 60 percent from 1970, according to a 2013 study (Source).
No matter what personal changes you make in your life, you will need to have a thorough understanding of your financial picture to ensure you’re on track to meet your goals. This includes retirement savings, insurance, and other choices. We seek to empower women to take control of their finances and make solid choices.
A Woman’s Approach To Finance
Despite fighting for equal wages to men, women still earn (on average) 80 cents for every dollar that a man earns. In 2015, Missouri women had weekly earnings of 77.3% of the median usual weekly earnings for their male counterparts, according to the U.S. Bureau of Labor Statistics.
So, when we get to the end of our working career, the amount of money in our retirement accounts can be substantially smaller than men’s—even if we consistently put in the same percentage!
To top that off, women statistically live longer than men. So really, that lesser amount of money may need to last us even longer.
As women, we must understand the potential barriers we could face financially, while having the confidence, education and strategies in place to overcome those pitfalls. Having an unbiased financial advisor in your corner can help you achieve it.
As the sole breadwinner in your personal story, it’s important you be prepared to financially handle life’s unexpected twists.
Having an emergency fund is a well-known way to maximize preparedness, as recently written about in the Kansas City Star. Or just ask Investopedia. If you did not have an emergency fund, and you were to unexpectedly lose your job, or incur an unexpected, large bill, you could be forced you into a credit card debt situation nearly possible to get out of. It’s common to hear people say that you need three to six months’ worth of expenses put away.
There’s no question that that’s important. As is putting money away for retirement, while you’re building your emergency fund on the side. While we realize money does not grow on trees—especially as the a professional women supporting herself— there must be a strategic plan in place to ensure that all of your financial bases are covered.
You’ll need to find the best strategies for you to follow to pay off student loan debts, manage your budget/spending, save for retirement, investment management, saving for a home and other long-term goals. This is why we preach the importance of a customized financial plan. There are so many factors that come into play in your financial story. And in your position, you must make sure you’re in control.
Women & Saving
Studies prove it: Women are exceptional savers and investors. It’s logical that women can appreciate the security a healthy bank account can provide.
However, is your saving account growth keeping pace with inflation? Check out this scenario from How Inflation Affects Your Cash Savings on Investopedia
“Let’s say you have $100 in a savings account that pays a 1% interest rate. After a year, you will have $101 in your account. During this period, if inflation runs 2%, you would have to have $102 to make up for the impact of higher prices. Since you will only have $101 in your account, you have actually lost some purchasing power. If your savings don’t grow to reflect this rise in prices over time, the effect will be as though you are actually losing money.”
We encourage that you work with a financial planner to come up with a solid long-term investment plan. The goals is to let your savings work and grow for you for decades to come.