The Future of Female Financial Empowerment is Today
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The evidence of how women were, and continue to be, disproportionately impacted by the pandemic is staggering and continues to be felt and seen every day. In fact, a study that was conducted more than one year into the pandemic found that 1 in 4 mid-career women took on credit card debt to pay for basic necessities.
Now, as the pandemic challenges everyone to shine a spotlight on wellbeing, engaging in financial wellness practices has become even more critical to the overall quality of life. This includes paying off debt and getting to a place of financial security and freedom. And while everyone’s financial journey is different, there are actionable steps advisors can take to empower their female clients’ financial futures and health.
Establishing and executing goals, both for the short and long-term, is a great place to start to help clients get their personal finances in order. There are foundational elements to financial wellness that provide immediate benefits, which make them excellent short-term priorities.
Build your budget
Remind clients that the biggest obstacle on the road toward financial security is being unaware of what they don’t know. Level-setting is a first step to helping them achieve their goals. For example, not knowing exactly how they’re spending their money hinders the ability to proactively plan their financial futures. Help them take the time to track down recurring costs (such as subscriptions, utilities, groceries, etc.) and tally up how much they spend. This can provide instant gratification and tame runaway anxiety by helping them understand their budgeting blind spots and it will give them a complete picture of how their hard-earned income is spent.