From the pay gap and gender leadership gap—to childcare, higher health care costs and longer lifespans—women face many challenges when it comes to financial health.
This is why one key focus of International Women’s Day 2024 is ending poverty. According to UN Women, more than 342 million women and girls could live below the poverty line by 2030.
What steps can women take to help improve their financial health in 2024? In celebration of International Women’s Day, let’s explore five strategies!
1. Reduce Credit Card Debt
USA Today reports that women carry $6,232 in credit card debt on average.
Paying off debt is challenging, but extremely rewarding when it frees up income for saving and investing, improves your credit score, and gives you peace of mind.
Check out our article, 4 Ways to Reduce Your Credit Card Debt, for strategies that can help you knock out your credit card debt once and for all.
2. Build Emergency Savings
An emergency fund can help you navigate loss of income or a large unexpected expense—yet 57% of women don’t have money saved up for emergencies.
Many experts recommend saving between three to six months’ worth of basic expenses. This may seem daunting, but it’s okay to start small. Set a goal to save $500 and start socking away money as you can. This can give you a strong launching point for more savings.
3. Save for Retirement
A recent survey found that women are more likely than men to have nothing saved for retirement, with 30% of women saying they have no retirement savings. At the same time, women outlive men by nearly six years, which means many women will need more retirement savings than men.
This year, take steps to catch up on your retirement savings by:
- Automating contributions
- Bumping up your contributions 1% to 2%
- Taking advantage of catch-up contributions if you’re over age 50
- Getting a side gig to earn more money
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4. Participate in Financial Planning
Barron’s reports that while it seems antiquated, many women in heterosexual relationships defer long-term financial decisions to their spouses. This can leave widowed women in a tough spot when they find themselves center stage in their own financial lives.
You can become an equal partner in financial planning by:
- Attending meetings with financial professionals
- Being familiar with all accounts, including where they’re located and what they’re worth
- Ensuring your name is on all accounts and investments
- Keeping a database of records and passwords
5. Choose the Right Insurance
There are several insurance products that can help women protect their financial security:
- Long-term care insurance: Women are more likely than men to need costly long-term care, but long-term care insurance is designed to help protect your finances.
- Annuities: These financial vehicles can help you accumulate money for retirement, protect what you’ve saved, or turn your retirement savings into an income stream.
- Life insurance: Life insurance can help you set the younger generation of women in your life up for financial security.
Want more? Check out our article, 5 Ways Women Can Take Control of Their Finances
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