Personal Finance 101: Foundational Tips for Women to Build Wealth with Confidence

Building wealth with confidence is key to reaching your financial goals. For women, there are unique challenges faced that should be taken into consideration. Guest author Janelle McCreary outlines strategies for women to best navigate their financial journey.

For women, building wealth is about much more than financial security. It’s about creating opportunities, achieving independence, and paving the way for future generations. Women face unique financial challenges, such as the gender wage gap and lower retirement savings, on average, compared to men—yet these obstacles don’t define your financial journey. By embracing smart financial strategies and leveraging your strengths, you can take control of your finances.

Here are some foundational tips to help you navigate financial decisions with confidence and purpose. 

1. Avoid Debt 

Debt can be one of the biggest hurdles to achieving financial freedom. Nearly a quarter of women over 65 have more than $7,500 in credit card debt.¹ High-interest obligations like credit card debt or unnecessary car payments can quickly derail your progress toward your goals. Focus on living within your means and prioritizing the repayment of any high-interest debt you already have. By taking control of your debt, you allow your money to start working for you instead of against you. 

2. Build an Emergency Fund

Life happens, and an emergency fund is your financial safety net. With nearly one-third of women in the U.S. drawing on their savings in recent months, building a strong emergency fund can help you feel more prepared to navigate life’s challenges.² Aim to save three to six months’ worth of essential expenses. Whether it’s an unexpected medical bill or a job transition, having this cushion in a high-yield savings account can give you peace of mind while earning a little extra interest. Start small, stay consistent, and create a financial buffer you can rely on. 

3. Maximize Your 401(k) Contributions 

Many women save less for retirement than men. In fact, fewer than 44 percent of working-aged women participate in a retirement plan.³ With longer life expectancies and a gender wage gap, it’s especially important for women to prioritize saving for retirement to ensure financial security. 

Starting to save now can help you prepare for a more comfortable future. If your employer offers a 401(k) or similar program, try to contribute as much as you can each month. While reaching the annual limit is ideal, every contribution makes a difference. Especially with an employer match, your savings are incredibly valuable for the future. The power of compounding growth can help your efforts today grow into a solid nest egg for tomorrow. 

4. Plan for Future Goals with Short- and Long-Term Investments

Beyond retirement, it’s essential to plan for other life goals, like buying a home or funding a dream project. Short-term investment accounts can be a great tool for saving toward these milestones. Consider choosing low-risk investments to protect your savings while earning more than a traditional savings account. If you expect to use funds in the near future (within the next year), a high-yield savings account can be a good fit for easy access to your cash. 

For the long term, keep contributing to accounts like your 401(k) or IRA. Passively managed funds, such as low-cost index funds or exchange-traded funds, can help you invest above and beyond the limits of traditional retirement savings accounts, with the added benefit of allowing you to access your money without penalties and lots of options for keeping your investments diversified. 

5. Stay Educated and Adapt Your Strategy

Knowledge is power, and the more you understand about investing, the more confident you’ll feel. Don’t be afraid to ask questions or seek out advice when you need it. 

As your goals evolve, make sure your investment strategy evolves too. Regularly review your accounts and adjust your contributions to focus on what matters most, whether it’s saving for a big purchase or maximizing your retirement savings. 

Investing is more than just a financial decision; it’s an act of self-care and empowerment. By avoiding debt, building an emergency fund, maximizing your 401(k), and planning for your goals, you’re taking control of your financial future.  

And remember, you don’t have to navigate this journey alone. Your Curi RMB Capital advisor is here to help you create a personalized plan tailored to your unique needs and circumstances. Together, we can build a roadmap to financial confidence and freedom.

Resources:

1. Bizouati-Kennedy, Y. (2024, May 8). The average woman has more credit card debt than you think -- see how you compare. GOBankingRates. https://www.gobankingrates.com/net-worth/debt/average-woman-has-more-credit-card-debt-than-you-think-see-how-you-compare/ 

2. Workplace Benefits Report - Insights for today’s workforce. (n.d.). Bank of America. https://business.bofa.com/en-us/content/workplace-benefits/workplace-benefits-report-overview.html 

3. Women and retirement savings. (n.d.). DOL. https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/women-and-retirement-savings#:~:text=Women%20are%20more%20likely%20to,resulting%20in%20lower%20retirement%20savings 

The opinions and analyses expressed in this blog post are based on Curi RMB Capital, LLC’s (“Curi RMB”) research and professional experience are expressed as of the date of our blog publishing. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. Curi RMB makes no warranty or representation, express or implied, nor does Curi RMB accept any liability, with respect to the information and data set forth herein, and Curi RMB specifically disclaims any duty to update any of the information and data contained in this blog. The information and data in this blog do not constitute legal, tax, accounting, investment, or other professional advice. Returns are presented net of fees. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs. The investment strategy and types of securities held by the comparison index may be substantially different from the investment strategy and types of securities held by your account. RMB Asset Management is a division of Curi RMB Capital.   

The content contained herein was generated by Curi RMB Capital with the assistance of an AI-based system to augment the effort. 

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