Financial planning saves a lot of stress and anxiety over money. Both men and women - single or married - should take part in planning for their future. But women face a different set of challenges.
This article is not intended to express how difficult it is for us to be a woman. We have tremendous opportunities and have already come a long way in the working world.
That being said, our financial planning needs can be altered in many ways by factors that may be out of our control.
The 5 reasons we need to plan differently are outlined below. They may not be applicable in every case, but we are more likely to experience these factors than men. With clarity, a well thought out and evolving financial plan, we as women can achieve financial confidence, independence and peace of mind.
Increased Longevity
Women are estimated to live 5 to 6 years longer than men. This increased longevity means that our retirement savings needs to last longer. During those extra years, we may incur even more expenses. Health concerns may surface or the need for skilled care may arise. All of this amounts to increased expenditures during our later years of life. Longevity that isn't planned for can put a strain on retirement savings. We should not plan on receiving or inheriting money from our spouse. People remaining unmarried or marriages ending in divorce, a monthly income from a spouse's pension, may not be an option. We need to plan for personal longevity because of this.
Break In Employment
It is not uncommon for us to take a break from employment when children are being born and raised. Some women decide to quit their corporate gig and become a stay at home mom. Or... they trade in their higher paying job for one that offers more flexibility and better hours. This puts us in a position where less personal income may be coming in. This has a significant impact on our ability to save for retirement.
Also, getting back into the labor market right where we left off can be difficult. After years away, technology, younger workers, more experienced workers, and industry changes can make this harder to do. Women taking a break in employment to raise a family may face these obstacles when trying to re-enter the workforce.
Life as a Woman Costs More
It doesn't come as a surprise that we generally spend more in certain areas than men. The entire beauty and cosmetic industries are largely focused on women. Generally, women spend more on makeup, hair and skin care products. We generally spend more on clothing, shoes and accessories as well. The above expenses tend to occur on a much more frequent and recurring basis. Men don't spend nearly as much on these.
Additional financial planning and budgeting can help reign in any excessive spending in this category. In most cases, even tightening the belt on some of these items may not solve the problem. Life as a woman... still costs more.
Women Are More Likely To Experience Independence
Whether it is due to outliving our spouse, being single, widowed or divorced, we are more likely to be the sole financial decision maker at some point in our life. This is another reason why it is important to have a financial plan that prepares for the future. In previous generations, women were accustomed to taking a back seat with finances. This is no longer the case. Today a proactive approach to future financial needs is always advisable.
Women May Earn Less Than Men
This is a long standing concern. We still statistically earn less than men. Women may take a break in employment which may hinder their salary growth, or we are less likely to ask for a raise which causes us to be treated differently compared to our male counterparts.
This may have a significant effect on our future financial situation. The good news is that both men and women have the same opportunity to prepare for retirement. The sooner you are able to start investing and planning for your retirement, the better prepared you will be. The longer you allow your money to grow and compound, the more stable your financial future will be.
In Summary:
All of these reasons need to be factored in when determining your financial plan. Woman tend to be challenged by these 5 concerns more often than men. Regardless of salary or marital status, the sooner and more focused we are to take control of our finances... the better off we will be.
Article Source: https://EzineArticles.com/expert/Chelsea_Maderer/2425629
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