Lack of money is the biggest reason why women can’t reach their financial goals. Even though many women have good jobs, there is still a pay gap between men and women.
Salary.com says that a woman would make about $400,000 less than a guy over a 40-year career with a median income. Geography also plays a role. For women to make more money generally, it will take more than a side job or selling used clothes and other things on e-commerce sites.
GOBankingRates talked to Pam Krueger, CEO and founder of Wealthramp, a tool for matching fiduciary advisors with clients, about the six best ways for women to increase their wealth.
Now is not the time to sit around and wait for a rise or a new chance. Krueger told people to take charge and think ahead. If you want to get a raise, make a list of your best achievements and how much money they saved the company.
As part of your preparation for negotiations, you should find out what a fair salary is for your job and location. Think about other perks, like an education stipend, that you might be able to use to make your life easier. If you don’t see certain perks that could help your finances and you don’t want to ask for them, you can suggest them.
Use the valuable benefits of your job.
This includes your Health Savings Account (HSA), Flexible Spending Account (FSA), and a full match on your 401(k) if your company gives these benefits.
Krueger said, “You may also want to think about working longer, delaying your Social Security benefits, getting the most out of your retirement accounts, and using long-term care.”
Don’t Overlook Your 401(k).
Your 401(k) is there to help you invest wisely by letting you use dollar-cost averaging, which is one of the best ways to invest. “When you put money from every paycheck into your 401(k) at work, you automatically buy shares of stock, sometimes when prices are low and sometimes when they are high,” said Krueger.
This means that you don’t have to guess when to buy into the market. Instead, you can use the dollar-cost average, which smooths out the highs and lows. “Over time, you end up buying shares at an “average” price, so you don’t always have to buy at the top of the market,” Krueger said.
Take Control of Your Financial Life.
It’s time to take full control of your finances in every way. This is especially true if the woman in a relationship or marriage has been one to sit back and not worry about the money.
If you don’t deal with your money, it costs you more than you think. Krueger said that if you want to take charge of your finances, you need to know about the following things:
Any debt you carry?
Your credit rating.
How much money do you have saved up in case you need it?
How you think about money and how you spend, save, and invest?
How well you can talk to people and ask for what you want
“All of that confidence comes from within when you know your finances,” Krueger said.
Think About Getting Help From a Trusted Financial Advisor
Getting help from a trusted financial advisor costs money, but Krueger says that the money is more than worth it in the long run. A qualified fiduciary financial adviser will be able to do a cash flow analysis based on your personal situation and audit your investments, including a 401(k), to make sure you aren’t paying too much in fees. This expert will then make suggestions based on what they find.
Krueger says that if you want to work with a consultant, you should take your time to find the right person. Don’t be in a hurry to choose an adviser, and don’t pick someone with questionable credentials just to save time and make more money.
Carefully talk to them and make sure they really have your best interests in mind. A lack of income can be a big problem for your finances, but bad financial help can ruin your plans and even make you lose money.
Krueger said, “You can improve your finances and sense of financial security by getting educated, then making new habits that help you build wealth, and finally, by making smart money decisions.” “Knowledge is power when it comes to making money.”