5 Ways Women Can Financially Empower Themselves
Leisl L. Cording, CFP®
Senior Vice President & Financial Advisor
According to a recent study, there’s a gender gap in financial literacy between men and women. However, while women reported not knowing the answers to more financial questions than men, this wasn’t solely due to a lack of financial knowledge. Rather, it came from a lack of confidence in financial decision-making.1
I see this often when working with my own clients. I even experienced a bit of that feeling when I began studying Finance in college (a predominantly male area of study). But as I quickly learned, and as I advise my female clients, it’s a barrier to building wealth that simply does not have to be. Follow these five tips to boost your confidence and financially empower yourself or the women in your life.
#1: Set Smart Financial Goals
Don’t limit yourself. Set some short-term goals that you can actively measure and achieve in a reasonable amount of time. These goals can be the stepping stones for your financial future and bigger long-term achievements. Progressing through your goals can be an important component of building your financial confidence over time.
#2: Build a Budget
Creating a budget is the best way to know exactly where your money is going and avoid surprises. If you find yourself stressed out about managing your money, setting and sticking to a budget could help. Over time, seeing your money spent intentionally can help build feelings of financial confidence and reassurance.
Studies show that because they are less confident when it comes to money, women are less likely to invest in stocks.1 Unfortunately, being reluctant to invest in stocks can truly put women at a disadvantage. When planning ahead for retirement, investing in a diversified portfolio is often a key component of any comprehensive, long-term strategy. And what’s interesting is that once women do create an investment strategy, they tend to be better about sticking to it over the long term than men, often resulting in higher gains over time.
If you aren’t working with an advisor already, search for a financial professional who can support and guide you in developing a portfolio and creating a solid financial plan. Doing so can help increase your level of comfort with investments and improve your ability to make investment decisions on your own. As one example, check our website at whzwealth.com/our-process to see the strategic Plan Well, Invest Well, Live Well process that we use for our clients.
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#4: Don't Be Afraid to Ask and Answer Questions
It’s easy to feel insecure about not knowing all the answers. Asking questions and learning from the answers is an important component of increasing your knowledge base and growing your financial confidence.
#5: Advocate on Behalf of All Women
No matter what gender you identify as, you can use your voice to advocate for women’s financial equality, security and confidence. Speak up when you can, and encourage other women to speak up as well. Creating meaningful conversations can help identify similar pain points amongst your peers, get your concerns addressed and develop a safe space to grow your financial knowledge and confidence.
It’s okay to strive for balance rather than perfection when it comes to your financial life. Make sure that you’re doing the best for yourself. Don’t let the fear of failure or lack of confidence hold you back from taking control of your financial life and achieving your biggest goals. We can help you to build a strategy that’s tailored just for you. Contact us now to get started.
Presented by Senior Vice President, Financial Advisor, Leisl L. Cording CFP®. Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your financial advisor. Weiss, Hale & Zahansky Strategic Wealth Advisors does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. 697 Pomfret Street, Pomfret Center, CT 06259, 860.928.2341. http://www.whzwealth.com (http://www.whzwealth.com)
1 https://www.econstor.eu/bitstream/10419/231301/1/1748719645.pdf (https://www.econstor.eu/bitstream/10419/231301/1/1748719645.pdf)