Insurer Allianz surveyed women in 2019 found that 67% of women surveyed said they were worried about their current financial situation compared to 57% of men surveyed. A majority of them (81%) said they experience a lot of stress when thinking about planning for their retirement. This survey and others like it brought to light some problems.
Females are generally more concerned with risking their nest eggs than their male counterparts. Risk aversion, especially during the productive years of a woman’s life, may mean that she will not accumulate enough savings to last until her retirement years.
In the United States, the typical woman peaks at the age of 44. At that point, she will earn an average of $ 66,700, according to Payscale.com. If you are a woman planning to retire, what steps can you take to make sure you don’t run out of money when you retire? What can you do to reduce the stress you feel when thinking about money?
Discuss (or discuss) money with your spouse or partner. If you are married, engaged, or in a committed relationship, you should discuss your concerns about finances. This speech should not be a forum for judgments or accusations about income or spending habits.
Instead, use this time to discuss your and your partner’s attitude toward savings, debt, retirement, and other money issues. Explain how your background has helped shape these attitudes and how you can use your strengths and weaknesses to create more financial peace.
Become more economical. Unfortunately, many Americans do not have the basic financial literacy to make optimal financial decisions. Fortunately, as the problem of financial illiteracy has entered mainstream consciousness, online courses and videos (many are free!) Have emerged. Take advantage of these and others offered by your workplace, university or financial advisor.
Keep a daily expense journal. If you catch yourself saying, “Wow! What happened to my salary? It might be time to start writing down your daily, weekly, and monthly expenses. Just like with diet and exercise, journaling creates a deeper awareness and can connect you emotionally to your money in ways that lead to better habits. You will start to see patterns and weaknesses and be able to address them more effectively. Plus, you’ll discover “fat” that you can reduce and use to grow your retirement accounts. As financial literacy expert Christine Luken points out, it only takes $ 24.70 per day in unnecessary expenses to reach $ 10,000 for the year!
Practice diligent personal care. So what does taking care of your physical, spiritual, and mental well-being have to do with managing money and planning for retirement? ALL! The links between your financial well-being and the rest of you are well established by psychologists. On the one hand, taking care of your body and mind can help you work longer if you want to. When you feel better, you’ll be more inclined to tackle the tasks associated with money management and retirement planning. You will also find more energy to work alongside concerts to earn extra money, participate in social activities, or hang out with friends and family.
Set up a contingency fund. Emergencies happen to even the best-planned and thriftiest individuals. A few months of hidden cash to help you overcome the unexpected helps you achieve a sense of well-being. An established emergency fund can take away the anxiety your brain creates in the face of uncertainty.
Lose the dark cloud of debt. One of the most common things that contribute to financial stress is having a lot of high interest consumer debt. Imagine how much money you will free up when you make a concerted effort to reduce that debt.
Think about retirement now. It’s never too early to think about retirement and consider seeking professional services. No matter what stage of your economic life you are in, it is always a good idea to find a guide to money matters.
There are many other ways for women to improve their future by taking back control of their money. To be informed.
STEPHEN DYBWAD is a member of Syndicated Columnists, a national organization committed to a completely transparent approach to money management.