Our office is run by a mighty team of women. We don’t take our work lightly, though we do share a great sense of office camaraderie.
With the strides of our foremothers at our backs, we’re forging ahead here at Alia Wealth Partners to bring more women into the fold of wise, strong financial planning.
So here we are. In March. And it’s Women’s History Month—a perfect opportunity for all of us women to talk about realizing our financial possibilities.
Whatever your goals, whether it’s to support a family, build your retirement savings or a magnificent dream home, or to give more to a favorite charity, remember: You’re in charge of your money. It’s not in charge of you.
INVEST IN YOU
The good news for us savvy women investors: We are increasingly doing it. We ARE taking charge and building wealth. In fact, in 2020, nearly 60% of women in the United States were solely responsible for investment decisions.
Here’s more for motivation: Women have been making significant gains in accumulating assets, with 67% of female investors surveyed saving beyond their retirement accounts, up from 44% in 2018.
Some even say that women may be better financial investors. (Hint: One source was CNBC!)
Their claim as to why? Overconfidence is bad, and women are less likely to fall victim to it.
Sadly, however, a 2017 Fidelity survey showed that just 9% of women thought that they would outperform men as investors. This year, only 14% of women said they knew a lot about saving and investing and 33% felt confident making investment decisions. The silver lining …
WOMEN MAY MAKE BETTER FINANCIAL PLANNING DECISIONS
We’re not afraid to ask questions—to get to the root of the why for the strategy and glean as much information as possible before making a decision.
We’re more open to advice—whether it’s from a financial mentor or other financially savvy female investors.
We tend to invest with purpose—almost half (49%) of women rated a company’s social mission as extremely or very important to them, compared to just 29% of men (2019 Money Crashers survey), We’re focused, attentive and intentional in our investing, which gives us more skin in the game.
We show more discipline—Wells Fargo found that “women tended to have a more disciplined approach to investing that may have helped them achieve better risk-adjusted returns.” (2021 investor survey)
4 THINGS FINANCIAL SAVVY WOMEN (INCLUDING YOU) DO
#1 You know your money like nobody’s business.
You show that money who’s boss by checking financial accounts regularly (checking, every day), and at least once a year you dig in to statements or other money-management tools to look closer at where you’re spending and why.
TIP: When reviewing financial statements, look for recurring charges that you completely forgot about, like automated monthly subscriptions that overlap in services. Cancel what you can. Five $20 monthly charges for music, movies or pet treats add up to what could be a nice regular contribution to a retirement account.
#2 You stick to a budget.
Tons of great advice about budgeting—and sticking to it—exists online. We can help too. If you want tips right now, let’s get going:
Inspired Budget w/ Allison Baggerly: How to Stick To a Budget: 6 Ways to Stay on Track
Clever Girl Finance: Key Tips to Stick to Your Budget (Even If You Can’t Stick to a Budget!) (11-minute video)
Her Money from Jean Chatzky: 5 Things That Will Help You Stick to a Budget
#3 You have an emergency fund.
You have at least three to six months’ worth of living expenses in savings that you don’t touch. A year’s worth of savings is even better, providing you with more security—and fewer sleepless nights—should a financial emergency ever occur.
#4 You save for retirement.
You and your fellow financially savvy friends delay the “I want it now!” urge—that immediate pull to purchase something you want in order to save and be in a better position for the long term.
In addition to saving and building a portfolio of assets, you’ve also created a will, have appropriate levels of life insurance, including long-term-care coverage, and have communicated your next steps in life with loved ones.
OWN YOUR POWER
Think of your financial health as an apothecary scale. Owning your wealth-building power is equally about the things you do, like making monthly Roth IRA allocations, and the things you don’t do, like impulsive overspending, to bring it all into balance.
Perhaps Warren Buffet, the American business magnate, investor and philanthropist, said it best. (Let’s give him props, even though this blog’s about women power.)
“Do not save what is left after spending, but spend what is left after saving.” – Warren Buffett
His wise advice bears repeating, no matter the platform or the month.
WE CAN HELP
You deserve to achieve your dreams and goals and evidence shows that you have the tools, intuition and perseverance to accomplish them. Maximize your gifts with our expertise. Let’s connect today.