Why Women Are Different
I am revisiting the whole reason I started doing what I do now. Women are DIFFERENT when it comes to finances. All the stereotypes that are out there can be basically done away with. These are facts – with women being 51% of the population in the U.S. – this needs to be addressed.
- 90% of us will manage our own finances due to death or divorce of a spouse
- Statistically, we live longer than men, but have smaller nest eggs.
You say – “OK great – thanks for sharing, but what can we do?”
Understand your finances. Know how the money come in and where it goes out. Get involved.
- Make sure you have credit in your name ONLY – a credit card will work. Trying to establish credit once something happens is tough – there is no record of “just you” unless you’ve done this.
- Know where the money is – how it comes in, where it goes out
- Know who owns what and who gets it when someone doesn’t come back for one reason or another
The reason we have smaller nest eggs are various.
- We are in and out of the workforce, usually as caregivers, so contributions to 401(k)s and Social Security can be inconsistent and don’t build up as much as our male counterparts.
- We still get paid less than our male counterparts.
- We take lesser paying jobs like teachers and administrators for one reason or another.
- We tend to be more conservative in how we invest.
Some of the above reasons are out of our control, but here are some actions to take
- we can learn to be more assertive and negotiate pay or a raise or “toot our own horn”, all which traditionally women have been taught not to do.
- Get advice and knowledge about investing – it will help you be more confident and maybe help you take a bit higher risk.
I work with many couples. It is usually the woman who comes to me first in these cases. Once the woman feels comfortable asking her spouse the questions I coach her on, they end up coming as a couple. I think this happens because most spouses want to take care of each other – they just don’t take the time or know how.
If this is you and your spouse – give me a call or email (Contact details are in the side bar).