Being Financially Independent is an important goal for many people. It means you can have the ability to support yourself without relying on others for assistance financially. It also means you control your finances as you make your own financial decisions, rather than someone else deciding for you.
Regardless of who you are, being Financially Independent makes it easier to achieve your dreams. It also gives you the peace of mind to know that you have the finances to live the life you want.
For women, Financial Independence can be more elusive. Women typically face more financial hurdles such as lower pay, career gaps while caring for their families, and other financial barriers. Also, generally, women live longer than men, so they must plan financially for more extended periods. They need to have enough financial knowledge to make decisions on their own if their spouse dies before them.
Here are ways women can effectively manage their finances and plan for the future.
Find an advisor you trust
There are too many well-intentioned advice columns that offer advice designed to “fix” women, focusing on what they do wrong with their money. This is outdated advice. You don’t need to be fixed, but you may need some guidance on what the best strategies are for you.
Find a Financial Advisor willing to guide you by respecting where you’re at, where you want to go, how you want to spend your money and your unique financial needs. Choose an advisor who works with your personality, goals, and concerns and takes your insights seriously.
Follow age-old advice
Regardless of gender, there are some important steps that can help you obtain Financial Independence. These include:
- Deciding what you want
- Creating a budget
- Paying down debt
- Setting aside a certain amount for savings
- Having an emergency fund
Think of your retirement
A big part of taking charge of your financial future is thinking about your retirement. If the place you work for offers a retirement plan, take advantage of it. If you don’t, consider opening a retirement saving account for yourself. The earlier you do it, the longer you have to save for your retirement, which is crucial as you may live well into your 90s.
Invest your money
You need money in savings, but you also need your money to work for you. That means investing. We’re not saying you have to invest in risky stocks if that doesn’t suit you or meet your needs. Although investing can bring you a higher return than a savings account will. A diversified portfolio will limit your exposure to losses and give you more potential for growth.
Have a comprehensive financial plan
Having a budget will help you with your monthly spending. Although, a comprehensive financial plan considers your entire situation, including your income, expenses, investments, assets, estate planning needs, income taxes, retirement needs and how they all work together to help you achieve your goals.
Being Financially Independent involves you having the money you need to live the lifestyle you want, but it also means having the confidence to make your own financial decisions. It’s about controlling your money and ensuring your money is working towards your goals.
If you have any questions, feel free to discuss how we can help you become financially independent Join the conversation…