Often, women face more financial challenges than men, which can impact their ability to build wealth. They may not have as much money in savings, and part of this results from the pay gap between genders. Even though you may have more disadvantages to deal with than men, you can implement a few planning strategies to overcome these challenges. Educating yourself can go a long way.
Lack of Confidence Around Financial Matters
If you do not feel confident with money management, you are not alone. Many women do not feel confident about making financial decisions, and they often think they are bad with money. But don’t let this get you down. If you relate to other females through conversation, talking to other women can help you learn about everything from savings to budgeting to 401(k) plans.
If you have student loan debt, educating yourself can help you determine the best way to deal with it. Having multiple federal and private loans can be extremely overwhelming but consolidating them can reduce your debt obligations to only one loan. You can review a guide to educate yourself on the options.
Not Enough Savings
Women often have less money in their savings accounts than men. Many women do not have an emergency fund and would need to go into debt to cover an unexpected expense. Because women are often overlooked for higher paying jobs or advancement, they may not have as much in retirement savings either. It’s common to deal with indecision when it comes to financial planning. However, you can overcome this challenge by automating your savings. By automatically transferring a portion of each paycheck into savings, you create a habit of paying yourself first. This helps you meet your goals without having to put too much thought into it.
It can be hard to become a master of your finances when you simply aren’t earning enough. Women still earn less than men do, and this is partly because of systematic issues. However, you can also be more proactive about pay negotiation and ask to be paid at what you are worth. Speak with others in your network about what they are being paid for similar work, and make sure you speak with both men and women to get an idea of what you should be paid. Understanding the market value can prevent you from accepting a lower wage than you deserve.
You can also negotiate things like benefits, as these are part of your compensation. If your current company won’t offer what you need, consider moving to another company to boost your salary. Often, switching jobs after a couple of years can net you more pay, especially because of the broad experience you will bring to the table. It’s common to worry about leaving your job, but if your salary is not helping you meet your financial goals, it may be time to move on. You will be able to save more for your retirement by switching to a new employer.