Financial Empowerment Roadmap for Women: Comprehensive Financial Advice from Professionals
In a recent survey conducted by Charles Schwab, over 1,200 women shared their experiences and insights about building wealth. The findings, summarized in a Kiplinger Personal Finance article, highlight six steps that can help women take control of their financial futures.
- Learn about personal finance: Building financial knowledge is essential for proficiency. Nearly a quarter of the women surveyed admitted that a lack of financial education is holding them back. Starting with identifying the topics you want to learn about and finding content that fits your learning style can help improve financial knowledge.
- Identify trustworthy sources: With an abundance of financial information available, it's crucial to seek out reliable and credible sources. Sharing financial knowledge and experiences with others can accelerate learning and provide support.
- Seek professional advice: For personalized guidance, consulting with a qualified financial expert can be invaluable. These experts include professional wealth managers, fiduciary financial planners, CPAs, and lawyers, most of whom have certifications such as CFP®, ChFC®, IAR, AIF®, CDFA®, and more.
- Start small: Investing or saving even modest amounts early can make a significant difference thanks to the power of compound growth. Starting to invest early and maintaining a long-term view is key, as small investments can grow significantly over time.
- Take control of expenses: Budgeting and managing spending are essential for building wealth. Automating your finances, such as setting up direct deposits into savings or investment accounts and establishing recurring transfers, can help streamline this process.
- Stay informed: Keeping up with financial news and trends is vital for making informed decisions. This can help women stay ahead of the curve and make the most of their financial opportunities.
These steps emphasize building financial literacy and taking proactive measures to empower women in managing their money and investing over time. It's important to remember that investing involves risk, including loss of principal. High-interest debt should be paid down to improve credit history, which is crucial as it impacts your ability to get a loan, buy a home, or even land a job.
For those age 50 or older, catch-up contributions to a 401(k) or IRA are a great way to max out savings. The Kiplinger Building Wealth program offers access to financial advisers and business owners who share retirement, estate planning, and tax strategies. It's always a good idea to consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager for specific individualized tax, legal, or investment planning advice.
Many respondents cited uncertainty about where to begin or lack of money and knowledge as reasons for not investing. However, nearly all respondents reported that managing their investments gives them a sense of empowerment. Delaying saving and building wealth because of a lack of extra earnings is a common issue, with two-thirds (65%) of the women surveyed admitting to this.
The survey findings underscore the importance of financial education and proactive financial management for women. By following these six steps, women can build a strong foundation for their financial future and achieve greater control over their financial destinies.
[1] The six steps for women to achieve greater control of their financial futures, as suggested by the Charles Schwab survey and summarized in the Kiplinger Personal Finance article, are:
- Learn about personal finance
- Identify trustworthy sources
- Seek professional advice
- Start small
- Take control of expenses
- Stay informed
- To elevate their financial knowledge and build wealth, women can learn about personal finance and identify relevant resources for their learning style.
- A crucial step in building wealth is seeking professional advice from qualified financial experts, such as CFP®, ChFC®, or AIF® certified professionals.
- Alongside saving and investing, keeping up with health and wellness, including women's health, can contribute to overall well-being and financial stability through a proactive lifestyle.
