Women’s demographics have changed a lot over the years, and women are strongly represented in corporate America. In recent years women are emerging as key competitors in areas of business heavily dominated by men. Many women are holding these jobs and continuing to change the global corporate landscape.
With the emergence of more women entrepreneurs and innovators, the economy benefits from more women taking ownership of both business and family finances. While women are continuing to find equality in the workplace and corporate America, they are continuing to embrace their differences in their approach to business, economics, and life.
Women tend to be more thoughtful and compassionate by nature and more intuitive. These qualities are a significant advantage when it comes to planning for the future and finances. Because of these instincts and key differences, you should be mindful of some things when financial planning if you are a woman.
Let Go of the Baggage
Every person that has worked has made financial mistakes. Some mistakes are larger than others, but all can be overcome. The most important thing for women to keep in mind when a financial mistake is made is that it is no indication of incompetence. The most intelligent people can make a crucial mistake when making financial decisions and moves. If a mistake is made, correct it, overcome it, and let it go.
Take Money Lessons to Heart
Whether the money lessons come from your own experiences with money management or they come from observing others handling money, it is important to pay attention to money management lessons no matter where they originated. These lessons could be from observing your parents handling money and taking on their methods or rejecting their mistakes and not repeating them in your adult life.
Recognize Your Motivation
Money itself is a financial motivator; however, it alone will not sustain the momentum of motivation. You need to take inventory of your financial goals, discover your motivations, and use them to drive economic growth through financial planning. The more motivation you can discover, the more reasons you will have to grow financially, ultimately leading to other successes.
Remember What You Value
While shopping and spending money on non-essential luxury items is fun, it usually brings no real value to your life other than temporary happiness. When you are financially planning, you need to consider what you value financially and in life. If we place value on items over health, financial stability, and loved ones, we are undervaluing what is important. Set priorities both financially and in other aspects of your life.
Consider How Others Impact Your Finances
Women, by nature, often put everyone else’s needs before their own. This natural behavior can sometimes lead to others in our lives, having an impact on our finances. In some cases, like caring for an incapacitated loved one or an elderly parent are unavoidable additional financial burdens that cannot be avoided, nor should they be. However, sometimes we prioritize others over ourselves financially and prevent them from overcoming their own financial struggles. There is a fine line between charity and enabling when it comes to our loved ones and finances.
Because women have a longer life expectancy and generally a lower income and, therefore, lower retirement savings, they may have to assess risks differently than men. High risk equals high yield, and women will need to put this to the test to push the limits on income currently and retirement savings.