Financial independence is that glorious ideal we are all striving for in one way or another. But there is still an undeniable discrepancy between the ability for men to reach that goal and for women to get there too. Because, although women have come very far indeed in the workplace over the last century or so, there’s still a huge gender gap as regards to financial independence. Why is it important to close this gap and what advice is there for women hoping to achieve financial independence in the near future?
Why does this matter?
In a UBS survey of high net worth women, only 23% took the lead on long-term financial planning. It has been well documented that women are (by and large) superior when it comes to financing and long-term planning so the fact there is still such a monumental split should ring alarm bells for all of us.
If they are not sitting alongside their spouse and planning for their financial future then they are missing out on some incredibly useful experience that could prove invaluable in years to come, particularly when approaching retirement.
What do financial well-being and financial independence mean?
Simply put, it’s the ability to stop worrying about money. A Saunderson House study found that 53% of women are most worried about themselves or their partners losing their jobs, whereas for men, the most pressing concern currently (for 45%) is there fallout of the COVID-19 pandemic.
The latter is something we can do very little about but the former most certainly is. It’s this greater emphasis on control that could be one of the reasons why women are more worried about their financial independence but it’s also why it might actually be easier for them to achieve.
Financial advice
There are several things women could be doing today to achieve financial independence in the future.
Health insurance – COVID or no COVID, you should not be relying on your employer to provide your health insurance or your spouse’s health insurance. Remember, women are more likely to live longer too so it’s in your best interest to ensure both of you are covered by watertight policies.
Budgets and debts – Debts of all types tend to have interest rates attached so it’s imperative that your debts are the first things you take care of. As far as budgeting is concerned, meanwhile, the best thing you can do is to keep an eagle eye on your accounts and your spouse’s accounts. Don’t just check in every few months, examine them weekly.
Long term investments – If you’re going to be making any money-wise investments, ensure they are long terms ones. Financial independence is not something that is built overnight, after all.
