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Financial planning for women: Still more room for growth

Spotlight on Finance

— Women also live longer than men and have to spread that money out over a longer period of time. In fact, 50 percent of women older than age 65 outlive their husbands by 15 years. So despite the fact that women tend to save their earnings at a higher rate than men, at the end of the day women have lower bank balances because of their lower overall take home income.

This information is important because it creates a situation where women have less saving and investing power than men and are not as well prepared for retirement or sudden financial responsibility—whether through death or a divorce—as men.

Strategies for making a better, more financially stable woman

Women need to think about investing differently because the trajectory of their lives is different—longer time in retirement due to higher life expectancy rates than men. And this is why it is so important to start planning now. Every day spent putting off what can be done today is a lost opportunity for investing in tomorrow. Here are a few ways to start the process and begin investing in your financial future.

● Look at your financial situation and spending. Review your earnings and expenses and find places to save.

● Find a money buddy—someone to confide in about your financial savings strategy. This way you will have someone to hold yourself accountable to. The more you can start saving today, the more you will have for your future. Your buddy can help you stick to your budget and savings goals. Reward yourself along the way when you reach milestones.

● Take less time off of work. Swap out a day with your husband or partner and get paid for more working days. Because not only are you losing money from taking the day off you may be putting yourself at risk for losing out on career advancements and retirement benefits.

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