Women make up nearly 47% of the workforce across the country. This means that modern women are just as financially invested in their careers as men. The key to the continued difference between men and women is the level of earning potential. While we have come a long way in the race towards career compensation equality, there is more work to do.
One of the most overlooked reasons behind the lack of balance in the earning potential between men and women is that professional women are more likely to take larger amounts of time away from their careers. Whether you are starting a family, taking care of senior loved ones, or upgrading your education to compete more effectively in male-dominated industries, as a woman you are more likely to have fewer years to earn money.
Whether you are married or single, now is the time to take hold of your finances and make some bold moves that will ensure your future. Hiring a financial advisor or getting solid advice from a woman-owned personal finance blog can help you to make a financial plan for the future. Let’s take a look at a few essential money management tips for working women.
Start Early
As a young woman that may be just starting her career, the concept of retirement may seem like a long way off. While you may have to put in decades of working before you are ready to retire, now is the time to start putting money away for the future. The earlier you start your savings plan, the more money you will be able to earn through smart investments and compounding interest returns. A reasonable investment made today could grow exponentially in 20 to 30 years.
Have a Savings Plan
The best way to save is to set up a regular plan. When you get into the habit of saving and incorporating your savings contributions into your normal budget, it becomes second nature. Talk to your bank or your financial advisor about how you can increase your savings, or what smart long-term investments you could choose.
Set Specific Goals
Saving can be easier and more rewarding if you set goals for yourself. For example, you may want to set a monthly goal and see how many times during the year you can exceed your goal. You may be surprised at how much money can be saved in just one year. For example, if you make a savings goal of $50 per week, at the end of the year you could have $2,600 set aside, ready for investment in just one year.
Spend Responsibly
One of the keys to money management is smart spending. While it’s alright to go on the occasional spending spree, it’s not advisable to get into the habit of spending too much on items that have no return on the investment. When you are considering purchases, think about whether the money you are spending is being used responsibly or what changes you can make to your budget.
Participate in Decision Making
If you are in a committed relationship that shares financial resources, it’s your responsibility to be involved in any financial decision-making. If your money is being put into a mutual pool, you need to stay educated about where it is being used and what resources you have as an individual.
Working women have the power to change their financial futures. Follow these money management tips to help you move closer to a more secure financial future.
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