We are more likely to need an emergency Fund
Women are more likely to face different financial challenges than men. Women get paid less, women are charged more for products and women take more time off when we have a family, so it means we need to prepare for when an unexpected emergency should arise. Also more women than men are likely to work part time too, which means we often have less stocked away for our retirement. Commit to setting aside some time once a week to update your budget, review your accounts and generally see where you could be spending less. Then take action to start saving for your emergency fund.
We get paid less – Gender Pay Gap
In every single industry there is a pay gap favouring men. Last year, Jennifer Lawrence gave a voice to underpaid women everywhere when she penned an open letter asking why her male co-stars earned more than she and Amy Adams did in the film American Hustle. Although the earning gap is slowly closing, women still make on average three quarters of what men do for the same job and that means we suffer financially later on in life-therefore we need to save now.
Women spend more
Ok I know we might bring this on ourselves but women are naturally more likely to impulse buy, meaning we spend more than men. Since we can have anything we want these days with just the click of a button we are even more likely to splurge. If you’re guilty of this you need to find a way to be more mindful with your spending such as waiting 48 hours before you click buy or making sure you only buy things you REALLY want or need. It’s hard to break the habit but you’ll thank yourself for suppressing your urge to spend and teach yourself positive spending habits that will last a lifetime.
We live longer, so focus on your future
Saving for a debt free future is one of the most important financial decisions us women can make. You might not be thinking about your 50s in your 20s but you should, because many women now live 20 or more years after retirement, putting a huge burden on their savings. Set up a monthly direct debit that transfers 10%-15% of your salary into your savings account on pay day, this way you won’t be tempted to spend this money and you will start seeing some serious savings.
We all want to be Independent women… right?
The number one reason to save is so that you can be independent and not rely on anyone else, whether that is your parents or your partner. In fact, the number of female breadwinners has jumped from 26% to 41% in the last three decades so it just goes to show we don’t need to rely on a man for financial independence.
In the words of Destiny’s Child “All the women who are independent, throw your hands up at me!”.
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