The Truth About Women and Money

We need to face the truth is that many women have low financial literacy, suffer gender inequities and discrimination when it comes to money, experience periods of little income when raising children and in the worst cases are subject to financial abuse from partners and even children.

We are not taught money management and wealth creation in school. The result is many women haven’t been able to save enough for retirement and are experiencing the crash burn effect of trying to get ahead in their daily lives.

Here are some facts about women and wealth:

• Women aged 25 – 40 are the fastest-growing wealth demographic (Harnessing the Power of the Purse: Female Investors and Global Opportunities for Growth, Centre for Talent Innovation, 2014.)
• Money is the NUMBER ONE cause of stress for Australian Women – Australian wellbeing survey, APS 2014.
• Female participation in the workforce is at an all time high – 65% - Workplace Gender Equality Agency: Gender Pay Statistics, Australian Bureau of Statistics, 2014
• Women in Australia are 2 ½ times more likely to live in poverty in retirement than men - What Pay Equity Means for Women, Equal Opportunity for Women in the Workplace Agency
• ·More than 80 percent of older women taking part in a 2017 study couldn’t pass a retirement financial literacy quiz. Nearly twice as many of their male peers were able to pass.

Generally speaking, women earn less, save less, and live longer — but are still responsible for the same living expenses men pay. And since they live longer, they face additional costs, including more long-term and overall health care expenses.

Overcoming these obstacles demands serious dedication to a new focus on your financial freedom – this is WELLBEING + WEALTH = WELLTH

You can take action in your changing your WELLTH trajectory right away by starting with these steps:

Focus on your wellbeing

Invest in your health, education, relationships, and environment. Don’t neglect how you use your time and master your financial skills. Also, pursue your passions to enrich your life. Life is meant to be enjoyed and be satisfying. Live a rich life with an abundant mindset.

Have a Life Plan

Rather than drift through life or be stuck, living life by design is the essential way to an abundant life. Life Planning is a 5 step process to defining and designing your ideal life and making a plan to get you there.

Learn your credit score

Safeguard your credit score. You can get a free annual credit report from one of the three credit bureaus. Regularly check your credit report to ensure you don’t have any adverse reports that could impact your score.

Keep a record of your personal debt

By writing down paid-off debts, you can track your progress and celebrate small victories. Monitor your net worth regularly – your assets minus your liabilities.

Make a budget

Paying off debt will be easier once you start setting limits for yourself and recognizing the difference between needs and wants. Frugality while a good approach, on it’s own won’t make you rich.

Become an Investor

Aim to create assets that grow in value and provide an income. These assets can be property, shares, business, and crypto. You won’t become wealthy from your job alone.

Plan for retirement

Consider options for funding your retirement and securing your financial future. Talk to a financial advisor about your current situation and how to start planning for retirement now. By contributing to your superannuation, you can build a solid strategy for your retirement.

Women have come a long way on their money journey. Let your journey be one of WELLTH.