March is Women’s History Month, and we want to celebrate the achievements of women around the world. Women are making incredible advancements socially, culturally, politically — and yes, economically. Traditionally, finance is a field that’s been associated with men, from financial advisors to household financial managers. But, things are changing.
According to Boston Consulting Group, women control nearly one third1 of the world’s wealth today. And more women are managing household finances as well – 70% of millennial women take the lead in financial decisions, as opposed to just 40% a generation before. Arguably, there’s never been a better time to champion women as they invest, accrue wealth, and build a bright financial future for themselves and their families.
Why Financial Independence Matters
Financial independence can be a game changer for men and women alike. Simply put, becoming financially independent means generating enough income and accruing enough assets to care for yourself for the rest of your life – rather than depending on someone else to provide it for you. At SageSpring, we support women who step into financial freedom in this way, whether alongside their partners or as a single adult.
If you’re a woman who wants to take the reins on your finances, we would love to walk alongside you. There are two main ways you can step into financial independence:
1. Build a financial plan that works for you.
From creating a household budget to paying off debt, it’s important to have a well-drawn plan that works for your goals and lifestyle. When you use your resources wisely, you can step into the driver’s seat of your own financial future.
2. Invest into your future.
According to a recent study, less than 50% of women invest in the stock market.2 But when you choose to strategically invest your resources, that money has the potential to accumulate, furthering your financial progress in life. We encourage you to invest into your future by saving for retirement, making wise investments into the stock market, and building an emergency fund.
How to Plan Your Finances as a Woman
Taking stock of your current financial situation is one of the best ways to build a better financial future. A strong financial foundation can be built when you know where you stand and set goals for where to go next. If you want to get a clear picture of where you are financially, here’s what we recommend considering.
Evaluate your household budget.
Write down all of your income sources, along with your fixed and variable expenses. This will help show you where you may need to reduce specific expenses or where you have extra money to save.
Save for the short term.
Unexpected expenses are an unfortunate part of reality for all of us from time to time. But when you have a cushion to land on, these unpleasant surprises can cause less of a stir. By creating an emergency fund for these scenarios, you can be better prepared for the unplanned circumstances.
Pay off your debt.
When you have a clearer picture of your financial situation, this gives you the opportunity to see how to pay off your debt, from credit card bills to student loans or other looming expenses. If you need help creating a plan that works for you, one of our financial advisors can help.
Save for the long term.
You can do this by allocating a portion of your income to savings, whether that’s through a company retirement account, an IRA, or another long-term personal savings goal. We recommend that this money be “untouchable” once it’s been deposited so that you can accrue wealth for the future.
Women and Investing
Smart investments have the potential to positively impact on your finances as well. In order to create a plan that works well for you, it’s important to determine your retirement goals and expenses. Once you’re set up with a steady retirement savings plan, you can invest wisely in other places according to your cash availability and risk tolerance.
There are a variety of investment options available, and each of them offer advantages and risks. To identify what type of investing works best for you, we encourage you to meet with a financial advisor who can help. Our process is unique by first identifying your goals, preferred timeline, and risk tolerance, and then choosing a method that aligns with those factors to start building a financial future you’ll be proud of!
At SageSpring, we have a number of incredible female advisors who are passionate about helping women succeed when it comes to finances and investing. Start a conversation with one of our team members today to get trusted resources and guidance. We’re here to answer any questions you have and help you continue down the road to becoming financially savvy.
Our team of female financial advisors would love to hear from you. Click their information below to reach out today!
Katie Centofonti, CFP
Centofonti Wealth Team
Snively Wealth Team
Sircy-Hurd Wealth Team
Melissa Jones, CFP
Tunstall Wealth Team
Aull Wealth Team
Hart Wealth Team
Hannah Patterson, CFP
Deering Wealth Team