Financial Advisors: Here Are 7 Secrets To Help Women Attain Their Top 3 Money Goals
Written by
Yaël Bizouati-Kennedy
Edited by
Amber Barkley
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Women face specific financial challenges, such as pay disparity, as well as being family caregivers in many situations — which, in turn, often lessens their ability to save money.
And the numbers speak for themselves. Women working full time in the U.S. are still paid just 84 cents to every dollar earned by men, something that has consequences on many aspects of their lives, according to the American Association of University Women (AAUW).
What’s more, women hold almost a whopping two-thirds of the country’s $1.54 trillion student debt — $929 billion — according to AAUW, another financial burden that, combined with the resumption of student loan payments late last year, also further dampens their ability to save.
Against this backdrop, it’s no surprise that a new GOBankingRates survey found that women’s top financial goal is to pay off debt, with 26.57% of respondents reporting this goal. In addition, the other two top financial goals are covering basic expenses, with 26.17% and saving for retirement, with 21.28%, the survey found.
Here are some tips experts suggested to help women achieve these three goals.
Paying Off Debt
With cost of living growing ever higher, getting out of debt can feel far away, but it is possible.
Acknowledge the Issue
First off, it’s important to acknowledge there’s a problem that needs action — the debt is not going to disappear on its own, said debt and consumer finance expert Sean Fox, president of debt resolution at Achieve.
“Saying you want to get out of debt, similar to saying you want to lose weight, is great. But the best intentions don’t constitute action plans,” he added.
In turn, Fox said you need to be realistic, as many people anxious to work their way out of debt start out by cutting expenses so drastically and/or jumping into a program so quickly that there’s no way they will be able to stick to it. “It’s important to do the work in researching options and finding a plan that is workable for you over the long term.”
Start by making an honest assessment of whether you can pay down your debt on your own, particularly credit card debt.
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“To do so, set an amount each month that you can allocate to paying debt. This should be more than the combined minimum payments on all credit cards. Then select either the avalanche or snowball method,” he noted.
Get Employer-Assistance
Another tip — especially pertinent to the amount of student debt women hold — is getting employer assistance with repaying student loans.
Patricia Roberts, chief operating officer at Gift of College, explained that there are several tax-advantaged ways for employers to offer student loan repayment support and, in doing so, improve retention of valued female employees — as well as others encumbered by educational debt.
“If you’re uncertain about your employer currently offering the benefit or being open to considering it, you won’t know if you don’t ask,” she said. “If the answer is no, you can be on the lookout for opportunities with employers who do offer student loan assistance in one form or another.”
When women are weighed down by excessive student loans and other debt, as well, the likelihood of saving for retirement and other goals — such as home ownership — is reduced, she added.
Covering Basic Expenses
Although the survey found that this comes in second place, Jay Zigmont, Ph.D., MBA, CFP, founder and CEO of Childfree Wealth, suggested that covering basic expenses should generally be your first goal.
Start With a Budget
“To start, you need to get on a budget,” Zigmont said. “It really doesn’t matter what budget tool or app you use, just pick one you like. The key is to figure out if you have enough money to cover your basic needs.”
If you don’t have enough to cover basic needs, like food, housing and utilities, then you are in a crisis, and something needs to change, he noted, adding that it’s key to understand the huge difference between needs and wants.
Know How To Get Help
It’s also important to know when to get help, several experts noted. For instance, if you are struggling to make payments on your student loans, auto loans or mortgage, contact your servicer immediately, said Fox.
If you rent and are struggling to make your payments, first contact your landlord and see if they would be willing to work out some payment plan with you, or identify state and local government resources that have renter assistance programs, he added.
“Many people are struggling to pay for essentials, because they are carrying so much credit card debt; it becomes a vicious spiral. If this applies to you, take steps to eliminate the high-interest credit card debt,” he added.
Saving for Retirement
If you’re able to cover your expenses and your debt is paid off, your next step might be saving for retirement.
Visualize Your Retirement
Stoy Hall CFP, CEO and founder of Black Mammoth, said that the first step is to sit down and figure out what you want your retirement to look like. “On a beach with a cocktail? Traveling the world? Or staying where you are and continuing living as normal?” he said.
The second step is to look at your options and find out what you have available through work, such as a 401(k), SEP IRA or pension, he added.
“Utilize your options and max out the matches,” he said. He noted, however, to not max out your contributions above the matches unless you have enough cash flow to cover expenses and live your current life how you want.
Get Paid What You Deserve
Another important tip is to know your worth and get paid what you deserve.
“Earning a competitive salary is crucial for achieving your financial goals,” said Shawna Martin, career and money coach, CEO and founder of Seedling Coach. “Knowing your worth is key to both landing the right opportunity that utilizes your skills and negotiating fair compensation.”
Know Your Market Value
An actionable tip to that end, Martin added, is to know your market value.
“Research your position’s salary using sites like Glassdoor or Level.fyi,” she said. “Knowing your worth is key to negotiating fair compensation.”
Another tip is to rely on the power of community.
“Network with other women in similar roles,” she said. “Talk openly about fair pay — most women are happy to support each other in salary negotiations. Strength in numbers, right?”
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