Why Women Stay Poor

Legislation aimed at addressing the earnings gap between men and women has been around for more than 50 years. Despite that women still earn substantially less than men (80 cents in the $) and continue to work in lower paid professions. Progress is being made but not as fast as we might expect.

So how does our conditioning and make up impact our attitude to money and how does that get in the way of reaching our full potential (which should be at least equal to our male counterpart)? 

There are certainly enough motivators. We hate the fact that we don't have enough money, we know we probably spend too much and we certainly know we don't save as much as we should. 

Every day we read horror stores about inadequate retirement and old age poverty. These are still not enough to spur us into action and take control of our income generation. 

The answer lies in our conditioning and is intrinsic to who we are. Until we understand how this impacts our attitude to money, all the changes in legislation and extended maternity leave in the world will not raise our earning levels. 

Our conditioning is determined at a very early age. Some time between the ages of 0 and 8 we are taught a set of values or beliefs. In fact, David McClelland, Distinguished Research Professor of Boston University, proved it could be as early as 0 to 3 when our 'values' are determined by our parents and those most closest to us. These values impact how we feel about and respond to all sorts of things including our attitudes to money, wealth and the types of work we should be pursuing. 

The emphasis on should is deliberate. Values are all about what we believe we should be doing to please others, to please society in general and to fit in. 

For women and money this is complicated. Women today are taught the importance of being financially independent, to be self reliant because, after all, 'a man is not a plan'. However, sometimes the messages we hear growing up are inconsistent and conflicting. On the one hand, we're taught about the importance of money the need to spend and save it wisely. At the same time we are taught that it's just as important to be kind, sensitive and easy going; that the most important thing is our relationship with others and not our relationship with money. 

We are different to men: we are not taught how to be powerful or how to win at all costs. This makes us reluctant to demand what we think we deserve, including equal pay. 

To add insult to injury, going back generationally we were told at a very early age that girls are poor at maths. From this we conclude that we must be bad at finance and managing money as well. As a consequence, we lack confidence in dealing with money, preferring others to take charge. 

If our grandparents were raised during or shortly after the war, we also inherited a mentality of scarcity by our own parents, which continues to impact our attitude to risk and money as we become adults and parents in our own right.

 What has been the result? 

Besides the earnings gap which persists, a survey by the Economist Intelligence Unit on behalf of Barclays Wealth showed that we are far less likely to take risks with our money, whether in personal finance or business affairs. Women tend to place less importance than men on our income from investments and we save to reach a goal. Once the goal is reached we will often act to protect what it is that we have built up. This means we are limiting our potential to create even more wealth and be financially free. 

Men have a different attitude and game plan. The same survey showed that men claim to have better knowledge than women of every aspect of personal finance. They are more confident and as Dr Ros Altmann, Governor of the London School of Economics states, "Men have more of a mindset that you have to just go out and get it and you can see their attitude towards risk taking in the games they play." It may just be a matter of confidence or bravado, but men play to win, take less time researching investment products and invest in the longer term. 

Does this all mean we are doomed to stay poor for the rest of our lives? No! It means that what you focus on is what you get and it's time to focus on getting rich. Being rich is a positive thing. It is about flexibility, freedom and being in control. 

What do we need, to become financially free? 

1. Choose to do something about your financial literacy. 

Financial skills are not innate but learnt. We need to learn financial skills and practice them to gain confidence.

2. Spend don't save 

Invest a defined amount (minimum 10% of your net income) every month into a high income bearing savings account - but don't leave it there. Once you have accumulated enough, buy an asset which will produce passive income indefinitely. This could be an investment property which produces positive cash flow or stocks which pay dividends. Use this positive cash flow to buy a second income generating asset and continue to build assets. 

3. Develop financial goals and stick to them 

After you've built your financial skill, define how much income and assets you need to make you feel 'rich'. This will be different for each individual. If you are planning your retirement fund aim to build a fund that contains 25 times the annual amount you want to have when you retire. So, if you want a total income of $35,000 each year when you retire, you need to have $875,000 in your retirement fund.

4. Reward achievement in investment - don't use spending as emotional support 

A client wanted to buy a new Audi sportscar for $500 per month. Our challenge to her was to develop a stream of passive income to produce $500 per month within a year and then buy the sportscar as a reward. 

5. Network, network, network - but network with financially literate and clever people. 

We are told that we are great at networking so use this skill to build networks with others (both men and women) who are interested in building wealth. 

Article Source: https://EzineArticles.com/expert/Pam_Kennett/31862

Women and Retirement - Start Preparing Now

As much as we all hate to admit it, financial planning - for business and for personal use - has long been an activity that falls on male hands. Although the majority of us women handle the day-to-day financial aspects of running a family, few of us spend the same amount of time on creating long-term plans. In fact, only about 45% of women participate in a retirement plan where they work, compared to almost twice that for men. (Statistics exclude Australia as your employer is required to pay into Superannuation where applicable).

Many of us who do take this important step in financial planning tend to use that money too early, especially, when the family is in financial trouble. Despite the fact that we continue to strive for more equality for us in the workplace, we continue to miss out on opportunities to prepare for our retirement years. 

Why Retirement Planning is Important

If you retire at 65, you could have up to 25 or 35 years of retirement ahead of you. These days, very few women are investing in preparation for these so-called relaxation years, and over half of us women will end up working long after the age of 65. And those who do retire often find it difficult to maintain a high quality of life because the cost of living increases at a higher rate than our returns. 

For some women, retirement and financial planning isn't considered a top priority, whether it's because we consider ourselves too busy or we intend to share in the support and long-term planning of a spouse or other long-term partner. The reality is that half of all marriages fail, and oftentimes to catastrophic financial damages. Even if a couple does make it to the "golden years" together, it is considered unwise financial planning to put all our eggs in one basket, so to speak. With two retirement funds, most couples will be better off over the long term, whether they are still together or separated when the time for retirement hits. 

How Women Can Prepare for Retirement 

Part of the problem for many of us is that we don't know where to start with our financial future. The financial world can be complicated to navigate, and many of us suffer from a misapprehension that we might be discriminated against based on our gender (hence, Femvestorsglobal was formed!)

With the right financial advisor, this will never be the case. The best thing any of us can do is to educate ourselves and start small. As you learn more and start to build relationships with our team, you can start investing in bigger things and making more informed money choices. 

To start out, you should be making full use of your employer's retirement program. This will stand you in good stead later, but don't depend only on this. Investing in low risk index funds is an excellent way for women to get started in investing. These lock your money in for a specific term, which is perfect if you can't handle the temptation of having money in the bank. 

Thanks to advances in technology and financial options, there are a number of investment options that women can take part in. We support and educate you and help you choose the methods that work best for you and your family. This is an important part of planning for your financial future and will make all the difference when the time comes to retire and start enjoying those golden years with those you love.

Article Source: https://EzineArticles.com/expert/Wesley_Watkis/362080

Six Reasons Women Make Great Investors!

In the world of money and investing, men and women differ considerably. 

Does that mean that one gender is better than the other? 

Statistics show that there are reasons for women at least: 

1) Women are willing to ask for help and we are not afraid to admit when we don't know something. You hear women say, "I don't know what that term means" or "Can you explain that?" much more than men. 

2) Women are great shoppers and bargain hunters. We know how to look for something that is priced below value and buy it. 

3) Women do their research. Women tend to buy because the deal makes sense, not because we received a 'hot tip' from a friend on the golf course. 

4) Women are less likely to be high risk investors. Why? Because of #3 - we do our homework before making any purchases. 

5) Women have less ego. We tend not to 'brag' about our investments or our rate of return. 

6) Women learn well from other women. This is probably why women-only investment clubs are growing in popularity. We want to see other women succeed and are more than willing to share our experiences and strategies. There is no magic secret to being a successful investor. 

As women, we just need to shift our mindset from "I don't know anything about money" to "I can be a GREAT investor!" 

It's time women took control of not only their finances, but their lives! 

It is a great boost to our self-esteem and a very powerful position to be in. 

Women have been controlling household finances for generations, and making over 60% of all product purchase decisions. 

It's time to go to the next level - the level of controlling our future! 

Article Source: https://EzineArticles.com/expert/Maryanne_Fitzgerald/48987

6 Critical Areas of Financial Advice for Women

With more women working and our income being just as important as our partners for stability of the home, we need to consider:

Who would look after our children if they were seriously injured or died? 

What would happen if we were suddenly unable to work and bring in that income? 

What future plans could not be fulfilled if our income stopped? 

If a mother dies whilst our children are still very dependent, the emotional affects are bad enough but if you work and your income stops then the financial consequences are even greater. 

It is usual, even today, that we still remain responsible for the majority of the child care, the shopping, cooking, cleaning, washing, nursing, booking of doctor and dentist appointments, taxiing to and from school and clubs, organising holidays, birthday parties and presents - you get the idea. To have to employ someone to provide for each of these services and pay for them at a going rate would be astronomical but many women fail to insure ourselves. 

What about illness? Few employers provide any form of sickness protection meaning that in the event of a long term illness, you may receive some form of subsidy (depending on your geographic location and employer) or alternatively, you require private private insurance to cover you.

We all have future financial plans - the holiday we want, the car we are going to buy, when we can afford to retire etc and these are based on an assumption that we will continue to work and have money coming in. So if the money stops being received then these future financial plans can no longer be achieved. So insuring your ability to work and earn is vital. Don't leave it too late. 

Retirement

Traditionally women have neglected our retirement arrangements, relying on our partners to build up sufficient rights to provide for a combined old age. With the increase in divorce and women deciding to remain single the need to provide for our own retirement is now essential. 

In retirement everyone has their own individual personal allowance so even if a woman retires with a significant other, it makes sense for both to have an income that makes use of the tax allowances. A retirement fund is required on so many levels as it is the only savings plan that gives an immediate uplift when invested because the government gives tax relief on top of every individual contribution.  

Put Cash to Work 

It is important to have sufficient money on deposit to cover day to day needs and a little extra for emergencies - the washing machine always knows to break down just as the overdraft limit is reached. But with interest rates being so low large amounts of money should not be left on deposit because it is not working. 

Women tend to be more cautious and can shy away from investments considering them to be complicated and risky. This is not the case, there are interest based investments i.e. low risk, right up to individual stocks and shares in single companies with a wealth of investments in between. 

To make money work it needs to have a spread of investment which will include Cash, but long term it will not keep up with inflation so adding other asset sectors, such as Equities, will offer a better opportunity for real growth over the medium to long term.

Make a Will

So many people think that they do not need a Will because they do not have that much to leave, but a Will is about ensuring that an estate goes where it should on death. It also ensures that any estate is dealt with quickly and efficiently. Dying intestate (without a Will) means that a set procedure is followed for the distribution of assets, which does not necessarily match a person's desired outcome. Also, sorting out a Will is the first step to reducing any inheritance tax liability on the estate.

 After hard work and sensible investing most people want to be able to pass on their assets to the next generation. Unfortunately, there is a limit to what can be passed on before beneficiaries have to pay inheritance tax. There are many ways in which the value of an estate can be reduced but this has to be done with the luxury of time so it is never too early to look at such plans. 

By looking at financial affairs early it is possible to save inheritance tax and ensure that family reap the benefits from assets that have taken a lifetime of hard work to accumulate - don't pay more tax than has to be paid to the tax man.

Get a Power of Attorney 

A lasting power of attorney (POA) defines who is responsible for an individual should they become mentally or physically incapable of dealing with their own finances or day to day needs. It is a simple way of giving peace of mind. Regardless of age, an accident or illness can happen that means that an individual becomes vulnerable. This is when a power of attorney will step in. If a POA is not in existence then legal representatives have to apply to the Courts who appoint a deputy to manage the individual's property etc, this takes time and costs more money all at a time when the family do not need any more hassle. 

As we are all living longer it means that it is now more likely that either our mind and/or body will give up on us. It is never too early to put a POA in place and if there are elderly relatives then POAs should be discussed with them too. 

Get Cashback 

When shopping online instead of going directly to the shop try a link to a 'cashback site'. Online retailers pay the cashback sites for referrals and then the cashback sites will pay part of this to the purchaser; receive money back for something you were going to buy anyway. Never join a site that asks for a payment upfront. Insure yourself and your income to protect those you love, it costs less than most people think and act now to get the benefit of female insurance rates. 

Regardless of what life throws at you safeguard some of your income, reduce your tax liabilities so that life after work  provide what you want it to. Don't accept poor interest rates, you can do better. Don't be frightened of investment, it doesn't have to be risky.  

With careful planning, potential Inheritance Tax liabilities can be considerably reduced or indeed, mitigated completely. 

May you have a long and healthy life, dying without the need of a lasting power of attorney but if it is required the family will be so glad that you have the foresight to deal with it. 

Finally, make the most of what is on offer and get Cashback where you can! 

Article Source: https://EzineArticles.com/expert/Zanne_St_John_Marchmont/1416746

24 Financial Tips for Women

As women, we must plan for the expected and have a contingency plan. We must identify possible scenarios that could occur and develop solutions on how to deal with them. 

More than 80% of women will at some point in their lives have sole responsibility for their finances. 

Every woman can and should know how to manage her own finances. 

We need to become empowered with financial knowledge which will help us make the best financial decisions throughout our life. 

Here are 24 ways for us women to manage our finances:

Spending/Budgeting 

1. Create a budget or spending plan to control spending. Make your plan flexible to accommodate for unexpected expenses and include savings goals. Include monthly expenses and debt plus your monthly income

2. Create an emergency fund to cover monthly expenses for at least 3 months

3. Balance your monthly income and outgoings and document every transaction, including credit/afterpay transactions and trips to the ATM 

4. Reduce spending by 30-50%. Spread spending for large purchases over several months to ease the burden. Buy more needs vs. wants and reduce your credit card debt

5. Set both short-term and long-term goals such as paying off a bill and saving for a property

Debt 

1. Pay down debt and get current on late accounts. Keep debt (excluding rent/mortgage) at 15% or less of your net monthly income. 

2. Keep credit card balances at 20% or less of the credit limit. 

3. Pay more than the minimum monthly payment. 

4. Pay back loans. Consider using student loan forgiveness programs if applicable

Banking 

1. Pay bills online

2. Use direct debits where possible

3. Open an account with overdraft protection 

4. Save, save some more and save some more

Estate Planning 

1. Create a will to being setting up estate planning when you have long term partner, moreso when you have children

 2. Create a medical directive to identify your medical wishes

Investing 

1. Max out your tax advantaged retirement plans. Commit to saving a set percentage of your income, so when your income increases, your contributions will also increase 

2. Control your risks through diversifying and investing in various index funds that are a combination or low, medium and high risk to limit your losses

3. Focus on long term growth. Leave your money untouched for the next 5 to 10 years to see the benefits of your money growing

4. Invest as much as you can in tax-deferred retirement plans. Your money will grow faster and you can afford to invest more now because you won't have to pay taxes on the money until you retire 

5. Once you have decided how much to invest in each type of asset, rebalance often to your original percentages, particularly after a large market shift, upward or downward

6. Plan for the future and always have a plan A, B and C

Support and Emotions 

1. Develop a support network (friends, family, church members, join support groups and a financial network etc.) to get advice, support and encouragement

2. Think rationally and without emotion. Calm down and think logically about how to deal with your finances

3. Don't blame others for your financial mistakes. Take accountability and responsibility for your actions

Article Source: https://EzineArticles.com/expert/Harrine_Freeman/52122