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 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.
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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/
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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
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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 the article are based on Curi RMB Capital, LLC's research and professional experience. The information and data in this article do not constitute legal, tax, accounting, investment or other professional advice. Investors should consult with their trusted professionals prior to taking any action.
The content contained herein was generated by Curi RMB Capital with the assistance of an AI-based system to augment the effort.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and federally registered CFP (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
