Much of what makes us comes directly from the remarks and actions our parents impart to us when we are young. Financial lessons are no exception; in fact, money attitudes and behaviours sink in before kids even reach kindergarten.
Research shows that, in addition to a well-documented wage gap, women feel less empowered than men do when they think about their finances. And in the workplace, if an employee is, say, less assertive when it comes to negotiating compensation, that could result in leaving thousands of bucks on the table over the course of a career.
On the upside: Globally, when women are authorised to work and earn their own money, they can grow entire economies. And it can pay to gamble on their success. Women-led investments and startups tend to get smaller upfront funding; however, those businesses forged higher revenue than startups established by men.
So how can we as women take control of our financial future? Here are three steps to get started.
Step 1: Keep a check on debt
For the last decades, women have made up the majority of college-educated adults. Unfortunately, a university degree doesn’t secure financial stability. And it turns out debt is breaking the bank.
Since women on average earn less than men, they rely on smaller pay-checks to meet their financial commitments. And paying off debt distributes money away from financial goals, such as financial independence, retirement savings, and milestones like homeownership.
Understanding how to manage your finances is the foremost step in paying off debt and reaching financial liberty.
Make a budget
A budget lets you view, modify, and set spending limitations. Distinguish between needs and wants to prioritise the expenses that concern.
Track debt
Write down all of your debt commitments. Track your progress paying it off and celebrate each win, even if it’s a small one.
Settle overdue debts
Don’t shun debt collectors anymore. Work with your lender to negotiate payments instead of straining up interest and costs.
Step 2: Fight for your worth
For a long time, women’s lack of access to higher education excluded them from long-term careers with steady earnings. Today, increased rates of graduation have opened doors, but participation in the workforce comes with distinctive struggles for women.
If talking about your finances — how much you have earned, presently earn, and expect to earn — makes you awkward, you’re not alone. But understanding how to navigate difficult financial discussions in the workplace can help women advocate for better — or at least a fair — compensation.
Know about the fair price
Study how much you deserve to be compensated based on speaking to coworkers you count on, comparing average earnings, and searching professional salaries.
Comprehend the gender gap
Take the time to learn about salary differences, specifically in an industry or role where women have traditionally been paid trim. Come with facts to support your attempt for an increment.
Learn that you are permitted to negotiate
Even if you don’t feel comfortable asking for more capital, you have every right to ask and be heard. And don’t accept a no without rational logic.
Know that you have options
If you are being paid unfairly and you can’t come to an arrangement during your salary negotiation, then you don’t have to wait. While it’s easier said than done, there are other companies that will cherish and compensate for your contributions and efforts.
Step 3: Plan for the future
Forty per cent of women can’t afford to retire corresponded to only 29% of men. One way to battle this is to prioritise saving for retirement — the sooner the merrier.
Open a savings account
Open a dedicated savings account and set up a monthly automatic direct deposit from another account or your pay-check.
Set up a retirement fund
Even if it’s a long way off, think about what you want your money to do for you when you retire.
Maybe you want to pay off your mortgage, help your grandkids with college expenses, camp in your 10 favourite national parks, or start a new hobby you haven’t had time for during your working years. If you can picture what you want retirement to look like, it’s easier to plan for it.
Clarify and outline your short- and long-term financial goals
Determine the financial milestones that are most essential for you to achieve five, 10, 20, and 50 years down the line. Then, prioritise saving for your goals by following your budget and funding.
All the best !!!!
Author’s bio:
A vivacious and lively girl living in Delhi, on her voyage for exploration of colours in life. A glimpse of what she does: Read, write, eat, Repeat!
