Women with savings have more decision-making abilities and economic independence, according to the Center for Global Development (CGD). Despite this, new research has found that just 47% of women have an emergency fund. In comparison, almost 60% of men have money put away. So, what can women like you do to ensure you have a decent nest-egg to fall back on?
Fight for equal pay
Shockingly, the gender pay gap still exists in today’s society. For every dollar that a man earns, women earn just 82 cents. This means women are making 18% less than men even when they’re doing the same job. If you know or suspect you’re being paid less than your male colleagues, speak up. The easiest thing to do is to talk to your boss and negotiate a pay rise. You’ll be surprised at how many managers will agree to this simple request. If this doesn’t work, teaming up with your colleagues can help as there are sure to be others who aren’t being paid fairly. If all else fails, there is the option to file an official complaint with the Equal Employment Opportunity Commission or to take your employer to court.
Take an active role
Almost 50% of women say their husband takes control of long-term financial decisions. One in seven men go as far as to say they don’t trust their wife to make good financial choices, which means they take the lead. However, the only way you’re going to get to grips with managing your money and saving as much as you can is to be actively involved in your finances. You could start with small things, such as setting up an emergency fund and sorting a monthly standing order into it. If you come into some money and have a lump sum of cash to invest, actively look for ways to make your money go further. This could involve putting a deposit down on a property, renovating your home to increase its value, or paying off a chunk of your mortgage.
Gain financial confidence
Studies show that women are less confident than men when talking about and dealing with money. For example, 47% of women associate financial terms with negative emotions, compared to just 31% of men. When you’re confident about money, you automatically save more. The good news is that it’s simple to feel more connected to your finances. Education is the key, so it’s best to speak to a financial advisor. It’s also wise to have a financial plan that you can constantly refer back to as this will give you a reason to keep saving. You’ll also feel more confident by making small changes. Something as simple as ditching your daily takeout flat white coffee could save you more than $1,800 per year.
The majority of women are saving less than men. This has got to change as women need to be financially independent and able to support themselves.