Financial Empowerment Plan for Women: Expert Advice in Eight Steps
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Starting out on the path to financial independence can be a daunting task, especially for women who often face unique challenges such as lower pay, career interruptions, and fewer job opportunities. However, a recent survey by Charles Schwab has identified six key steps that can help women achieve greater control of their financial futures.
The survey involved over 1,200 women and found that 85% of respondents wish they had started investing sooner. One of the main reasons for this delay was uncertainty about where to begin or a perceived lack of money or knowledge. To overcome these barriers, women can take the following steps:
- Learn about personal finance: Start by identifying the topics they want to learn about and find content that fits their learning style. There are numerous online resources and opportunities to learn from experts, such as those offered by providers like Schwab.
- Be selective about where they get their financial information: It's crucial to seek out trustworthy sources of information. This includes consulting with qualified tax advisors, CPAs, financial planners, or investment managers for specific individualized advice.
- Seek professional help: Even at lower income and asset levels, professional help from experts such as professional wealth managers, fiduciary financial planners, CPAs, lawyers with certifications like CFP®, ChFC®, IAR, AIF®, CDFA®, and more can be invaluable.
- Start investing with small amounts: It's never too late to start investing, and even small contributions can make a big difference over time. Catch-up contributions to a 401(k) or IRA are beneficial for those age 50 or older.
- Take control of expenses: Building and maintaining good credit history is crucial as it impacts loan eligibility, home buying, and job opportunities. Paying down high-interest debt is important for a good credit history.
- Stay informed: Sharing financial knowledge and experiences with others can accelerate learning and provide support. Programmes like the Kiplinger Building Wealth programme offer access to financial advisers and business owners from around the world to share retirement, estate planning, and tax strategies.
Automating finances by setting up direct deposits, contributing to a 401(k), and establishing recurring transfers is an easy way to build wealth. Furthermore, investing early and maintaining a long-term view are essential for building wealth.
The survey also highlighted challenges such as lower pay, career interruptions to care for family, and fewer job opportunities faced by women when it comes to building wealth. However, experts emphasize that women are increasingly proactive about balancing financial inequalities by using available education and tools.
Managing their investments personally is strongly linked to a sense of empowerment, and seeking financial guidance, utilizing employer benefits like 401(k) plans, and increasing financial literacy early can further promote long-term financial control and security.
In summary, empowerment through education, professional advice, early and purposeful investing, and active expense management enables women to gain greater control of their financial futures according to the Charles Schwab findings and expert recommendations.
[1] Charles Schwab Survey [2] Schwab Learning Centre [3] Kiplinger Building Wealth [4] Investopedia Women and Investing [5] Forbes Women and Investing
- To further cement their financial control, women can leverage resources such as the Investopedia Women and Forbes Women and Investing sections, which provide extensive knowledge on investing and personal finance for women.
- As part of their comprehensive approach to wellness, women can prioritize investing in their financial future, taking advantage of the health-and-wellness practices of managing their personal finance, just as they would prioritize their physical health.
- Empowered by knowledge of women's health issues and finance, women can consider long-term investments in science and health-and-wellness sectors, which have seen rapid growth and can offer potential returns.
