Financial Empowerment Strategy for Women: Expert Advice in Eight Key Points
A new survey by Charles Schwab and an accompanying article in Kiplinger Personal Finance have highlighted six steps that female investors can take to achieve greater control over their financial futures.
The survey, which involved more than 1,200 women, found that nearly all of them reported a sense of empowerment from managing their investments. Moreover, 90% of those who are primary or joint financial decision-makers in their households feel they're on track to meet their financial goals.
However, many women cited uncertainty about where to begin or believed they lacked the money or knowledge to get started. This is a common hurdle, but the survey emphasized the importance of starting early and overcoming these uncertainties.
Six Steps to Financial Empowerment
The six steps suggested by the survey and the Kiplinger article are:
- Learn about personal finance to build foundational knowledge and confidence in managing money.
- Identify trustworthy sources of financial information to avoid misinformation and make sound decisions.
- Seek professional financial advice from qualified advisors for tailored guidance.
- Start investing early to leverage time and compound growth.
- Stay disciplined and patient in investment strategies, focusing on long-term financial goals.
- Take active control of financial decisions rather than deferring to others, to gain empowerment and align investments with personal priorities.
Building Wealth Despite Challenges
Women often face headwinds when it comes to building wealth, such as lower pay, career interruptions to care for family, and fewer job opportunities. However, these steps can help address these challenges and empower women to take control of their financial futures.
Seeking Expert Advice
It's important to consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager for specific individualized advice. 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.
Maintaining Good Credit
Building and maintaining good credit is crucial, as it impacts your ability to get a loan, buy a home, or even land a job. To improve your credit history, it's essential to pay off high-interest debt.
Investing Involves Risk
Investing involves risk, including the potential loss of principal. However, starting early and staying disciplined can help mitigate these risks and set a strong foundation for long-term financial success.
[1] Charles Schwab Survey: Investing Empowers Women, Kiplinger Personal Finance Article: Six Steps for Women to Take Control of Their Financial Futures.
- To overcome the challenge of lacking knowledge in personal finance, women should pursue learning about health-and-wellness, such as adopting a balanced diet and regular exercise, as good financial health is directly linked to overall well-being.
- In addition to financial literacy, women should prioritize investigating reliable sources for their science and investing information, ensuring they have a solid understanding of the potential impact on both their women's health and personal-finance.
- While starting to invest can seem daunting, seeking professional advice from experts in finance such as tax advisors, CPAs, Financial Planners, or Investment Managers can help women navigate the risks and make informed decisions to create a strong foundation for their future wealth.
