For most women, not having enough money to get what they need is the main obstacle to reaching their financial goals. Many women have fulfilling professional lives, but they still face salary inequality.
After 40 years of work at median wages, a woman would earn nearly $400,000 less than a man. The gender pay gap varies geographically, with Vermont women making 90% of what men do and Wyoming women making 65% of what men do.
For women to increase their incomes, they will need to do more than take on additional work or sell their used goods on online marketplaces.
Wealthramp is a fiduciary advisor matching platform, and GOBankingRates spoke with its CEO and founder, Pam Krueger, to learn the six best ways women may increase their wealth.
To Take the Initiative
You can’t sit around and hope that better pay or more opportunities will present themselves to you any time soon. Take charge, Krueger said; adopt a positive, proactive attitude.
Make a list of your most notable achievements alongside the financial impact they had on the company if you want a pay increase. As part of doing your homework before wage talks, gather reliable salary data for your role and location.
Look into any supplementary advantages you may be eligible for, such as a monetary award for continuing your education. Make a request or provide a suggestion if there are perks you could use financially that aren’t already available.
Profit From Useful Employment Resources
If your firm provides them, these perks would include a Health Savings Account, a Flexible Spending Account, and a 401(k) with a 100% corporate match.
Besides these options, Krueger suggests “working longer,” delaying Social Security payments, contributing as much as possible to retirement savings, and making use of long-term care services.
Consider Your 401(K) Plan Carefully (K)
One of the most successful investment methods is dollar-cost averaging, and your 401(k) is here to help you implement it. With a regular 401(k) plan at work, “you automatically acquire shares of stock when stock prices are lower and other times when prices are greater,” as Krueger put it.
In other words, dollar-cost averaging helps to even out the ups and downs of the market so that you don’t have to time your purchases perfectly.
According to Krueger, “over time, you wind up buying shares at an ‘average’ price,” which mitigates the danger of always purchasing at the market’s peak.
Get Your Financial House in Order
It’s time to stop letting your finances run your life and start taking charge of it. Especially if she has been the one to sit back and not become involved in the household finances, this is true for any woman in a relationship or marriage.
You lose more money than you think if you ignore your financial situation. While taking charge of your personal finances, Krueger recommends reading up on the following topics.
- Every outstanding bill
- The status of your credit
- Cash on hand for emergencies
How you think about and handle your finances, including how much you spend, save, and invest,
To be able to bargain for and demand what you need
If you know your financial situation, “that confidence just bubbles up from within,” as Krueger put it.
Take Advice From a Trustworthy Financial Adviser
Even while it may cost money to consult a fiduciary financial advisor, Krueger claims that doing so is well worth it in the long run.
Your investments, including your 401(k), should be audited by a competent fiduciary financial advisor to ensure you are not overpaying in fees, and they should also conduct a cash flow analysis tailored to your specific position. This consultant will then provide advice based on the findings.
Krueger suggests taking your time to select the perfect advisor if you’re thinking about hiring one. Never pick an advisor in a hurry or with doubtful credentials in the hopes of saving money.
Be sure they are representing your interests by doing a thorough interview process. Although having a low income is a serious problem, getting poor financial advice can completely derail your plans and possibly lead to losses.
“Fortifying your finances and sense of financial security begins with getting educated, then developing new wealth-building habits, and making wise money decisions,” added Krueger. For financial matters, “knowledge is power.”