The Data Shows Women Can’t Afford to Retire. Don’t Let That Be You.
The U.S. Census Bureau estimates that nearly half of all Americans have no retirement savings to speak of. Yet women are in a much more precarious financial state than their male counterparts when it comes to their retirement readiness. Women's median 401(k) account balances were 65% lower than for men in 2022, according to investment management firm T. Rowe Price. Women also contribute 43% less annually to their investment accounts, adding $5,421 per year, compared to $9,578 for men.
For the married woman, you could be thinking, it's ok, my spouse is socking away the majority of what we need to retire. And that's likely to be perfectly fine. But what if it's not? I don't want to go into the number of reasons why that doesn't mean you're protected, but I'm sure you can use your imagination.
I started caring more about my own financial situation years ago, due to a tough relationship closing in 2008. Many times, it's something hard, or rock bottom, that serves as a catalyst for us to dig in.
But I don't want you to have to go through what I did in order for you to decide to take a deep look at your monies. There are a million ways we can jump into this topic, but to start, I've outlined five basic ways you can start to take control of your financial situation, whether you are single or married.
1. Budgeting:
Create a detailed budget to track income and expenses, helping prioritize spending and identify areas for potential savings.
2. Emergency Fund:
Establish an emergency fund to cover unforeseen expenses, providing a financial safety net for unexpected situations.
3. Investing in Knowledge:
Educate yourself about personal finance, including investment options, savings strategies, and long-term financial planning.
4. Debt Management:
Develop a plan to tackle any existing debts, focusing on high-interest obligations first to reduce financial stress over time.
5. Setting Financial Goals:
Define short-term and long-term financial goals, outlining clear objectives to work towards and stay motivated in managing finances effectively.
I know this takes work and brain space, but future you will be so glad you prioritized this important work for yourself. Let's go, girls.
