The Importance of Saving as a Woman

It’s important for everyone to save money, regardless of their situation. Saving money and investing in your future is the biggest step you can take toward making things easy on yourself later.

But when it comes to saving, it is no secret that women are at a more disadvantaged place than men. This is not because men are better at saving money. Rather, there is a gender pay gap that favors men and puts women’s effort a bit behind from the get-go.

While this pay gap is improving, it is still important that women take the time to learn more about their finances and put themselves in a situation to be able to confidently navigate their financial future.

Educate yourself

Financial literacy is becoming very popular and can be found in many places. A good habit to get yourself into is take some time and learn some new things about the financial world and the control you have you have over your own finances. You might be surprised about some of the avenues you could be taking advantage of.

This doesn’t mean you have to become an expert in everything pertaining to finances. Far from it. Instead, learn about things as they enter your lifestyle. If you are just starting your retirement planning, for example, take the time to read about 401(K) options, and the different types of benefits that could improve your situation now and in the future.

Another important thing to remember is not to make decisions too quickly. Being confident does not mean refusing to ask questions or going along with a program you are unsure of. Take the time to educate yourself and do some research of your own so that your financial decisions can enhance your unique lifestyle.

Maintain financial independence

Emergency funds should be an ongoing part of your financial plan, as they can come in handy and keep the wheels on the track if needed. When in a relationship, for example, it can be tempting to merge these efforts. This is understandable, and doing that in addition to maintaining your own is a good move, but it is still important to continue your own emergency fund strategy.

After all, what if something unexpected were to happen? Having an emergency fund that is entirely your own will be there for an emergency that is also entirely your own. No one wants to think of emergencies in this way, but if you have your emergency fund in place, you will not have to think more than you need to.

The same can be said for your credit score, as this is also something that is unique to you. Stay confident in your plan to boost your credit score by making sure your financial behaviors stay your own. That's not to say there is no room for flexibility, but it is important not to merge all of your financial responsibilities.

These are only two examples of the importance of financial planning and saving. The old saying “pay yourself first” does not apply to your immediate situation only, but to your future as well. Do yourself a favor, regardless of any additional financial endeavors you add to your life, be sure to maintain some capacity of independent financial behaviors.

If and when the time comes that merging makes more sense for everyone involved, you will sort out the responsibilities in a way that make sense for you. Until then, pay yourself first.

Goals are personal

Write your goals down and make them part of your budget and your financial planning efforts. Life stages happen, and your priorities will change over time, but stay focused on reaching your goals. They don’t have to be sacrificed because of change. You can do this by constantly working on and adjusting your financial plan. Constantly stay mindful of the shifts going on in your life and how your spending should reflect it.

Have confidence in your career

The gender wage gap is a reality, which often puts additional work on women to sustain a similar lifestyle as their male counterparts. However, women do not have to wait until they are receiving paychecks to manage their financial plan. They can start this strategy at the interview.

Confidence in abilities and qualifications are strong assets for an employee or new hire, and salary negotiations are a great way to start a new endeavor. Build your skillset when it comes to negotiating your salary by knowing your net worth and finding out income levels for your field of expertise. And when you go to an interview, or have a review meeting of your performance, stay true to these strengths and be confident about knowing what you are worth to the organization.

Trust yourself

Building financial independence or funding a new phase of life can be exciting, but also risky. You are likely to make mistakes along the way. The trick is to move past them. Use them as learning steps and ways to improve your financial behavior.

Keep your budget as up to date as your lifestyle and build a financial plan that will see you through your retirement years. And as you work toward the goals, both long-term and short-term, remember that your financial situation and your goals are unique, so trust in your unique plan to reach them.

Want to talk with someone about saving? Schedule an appointment to meet with someone at an Associated Bank near you.

 

Sources:

“Money Tips for Women,” the balance, January 2021

https://www.thebalance.com/top-ten-money-tips-for-women-1290009

“Becoming a Money-Wise Woman,” MoneyGeek, December 2019

https://www.moneygeek.com/financial-planning/resources/womens-guide-to-financial-independence/