According to a recent Pew Research study, nearly half of all U.S. household budgets are managed by women. Yet, women face some hurdles in building their financial futures, including career breaks when raising children (leading to less lifetime income), as well as longer lifespans (leading to outliving one’s savings). Let’s look at five tips to achieve financial success.
- Long-Term Savings Comes First. That means you need to invest in yourself with an Individual Retirement Account (IRA), your employer’s 401(k), or another retirement account. Deposit as much as you can into that account every month to build your retirement savings.
- Plan for Retirement. The earlier you can start saving and planning for retirement, the better. Check on your possible Social Security benefits, including when it would be best for you to start taking withdrawals. Additionally, estimate what you will need to retire and work toward that number. When estimating costs during retirement, you’ll find that you will spend less overall for daily life. But there will still be costs, including housing, medical, food, and transportation.
- Pay Yourself. Conceptualize an amount you can put away every day, maybe that's a dollar or two. Then, set up an automatic payment that moves that small amount of money monthly into a savings account. That daily allowance to yourself will really add up throughout the months and years.
- Be Ready for an Emergency. Anything can happen, including layoffs, loss of a job, or a big expense such as a major car repair. An emergency savings account can help you pay the bills when the unexpected happens, all without going into debt. Experts suggest an emergency savings account with enough money in it to cover six months of your family budget.
- Become a Money Maven. Learn as much about money as you can. That includes budgeting, investing, paying off debt, and retirement. There are plenty of books on the subject. Plus, you have access to the entire PAHO/WHO FCU Financial Wellness Matters blog, packed with info you can use to boost your financial knowledge and future.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.