Women and Finances
Ellevest’s survey took information from 1,034 women, all of whom had personal income levels of $50,000 or more. The women involved in the survey also played an active role in managing their personal or household finances.
However, less than half of the women surveyed felt satisfied with their current financial knowledge. Of those seeking the help of a financial advisor, only 17% were satisfied with the advice they were receiving. In fact, a majority of the women surveyed were unsatisfied with their financial lives entirely.
Only 36% reported being content with their net worth. Thirty-seven percent are satisfied with their current investment portfolio, and a mere 40% are happy with their retirement savings.
Despite not being content with their current financial situation, women seem to set very clear goals for themselves and their finances. Of those surveyed, 66% have a retirement savings goal; 59% have a goal to save money for travel; 40% have the goal of being debt-free.
Those are amazing goals to set for yourself but few women feel they have the tools necessary to get the job done. Only 47% of women surveyed said they know how to achieve their financial goals though.
For women over the age of 50, this can become increasingly concerning. Because women typically outlive their husbands, they will likely have to manage their finances at some point in their lives. So, how can women take control of their finances?
What Women Can Do to Improve Their Finances
Taking a more active role in finance can increase confidence and lead women to gain clarity and control in all aspects of their lives. Ellevest’s survey found that 67% of women felt more confident after putting money away into savings to reach financial goals.
Outside of saving money, there are a number of things women can do to take control of their finances. Here are a few ways to change your financial future as a woman.
- Prioritize your spending. Women often feel guilty if they aren’t able to provide for people they care about. Struggling with this guilt can lead them to spend money on a new toy their child probably didn’t need instead of saving or investing in your child’s future. Consider the pros and cons of each purchase because making it and prioritize what you spend money on.
- Educate yourself. There are a number of personal finance books and seminars that you can access for little-to-no money. You can also inquire about getting financial advice from work. If your employer has a 401K plan, for instance, you should be able to talk to someone in Human Resources about maxing out your contribution. Many banks also offer free information about financial planning, investing, and other personal finance-related topics. Take advantage of the free educational materials available to you.
- Be flexible and don’t insist on perfection. If you are taking a DIY approach to your finances, remember you cannot expect perfection all the time. Learn to adjust to your new way of viewing your money.
- Set goals and visualize your future self. For women, tracking seems to be a vital part of staying on budget and in control of their finances. Tracking your day-to-day expenses will help you stay on route to reaching your goals and, eventually, reach financial freedom (isn’t that everyone’s dream?).
- Talk about it with your friends. It is time for women to be savvy about finance and have educated conversations about it daily. Otherwise, the relationship between women and finances won’t ever mend itself.
All it takes is one change to start bettering your financial future. What is stopping you from taking the steps above and inching closer to a better you?
Readers, what do you think about the relationship between women and finances?
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