Why Women Are Financially Behind

Your friends may have the full-time corporate jobs with impressive titles.  You have a full-time job with the title of Mom.

The pay and retirement benefits at these corporate jobs is great.   Your full-time job of Mom did not pay well or provide corporate benefits but it did offer its own special joys and benefits.

You never thought about trading places with your friends but now you’re not sure because you feel financially behind.   You probably are, however, regardless of the circumstances that put you financially behind, you need to take control and push yourself beyond any financial barriers that exist.

Full-Time Job|Raise A Family

Women who left the work force or raised their families before starting their careers are financially behind through no fault of their own.

Time Is Money|Less Time, Less Money
  • Fewer working years results in fewer years to earn investment money.
  • Less time on job to build up seniority results in lower pay grades so less money available to save for retirement.
  • Smaller social security checks.
  • Reentry into the work force may only offer women part-time jobs; which are lower paying and usually do not offer retirement benefits.
  • If women do receive retirement benefits, their retirement plan checks will be smaller.

Women Need To Create Financial Security

Women will need more money to live on for their basic needs, health care and long-term care needs because on average women live longer than men.

Women understand that it’s not what you make but what you keep that counts.   So women should focus on what they are great at.

What Women Excel At

Follow The Money
  • Find investment money by pinching pennies and being frugal.
  • If you’re not spending money, you’re saving money…women get that.
  • Spend less, shop everything.   If it’s not on sale, wait until it goes on sale before buying it.
Follow The Debt
  • Pay down your debt.
  • Debt reduction can be done bit by bit.
  • Avoid building up debt; credit cards are a curse.
Be Prepared
  • Build up your emergency fund.
  • Think long-term.
  • You either need to save enough money to last as long as you do or find a way to extend your retirement income.  You do that by working forever or look into an income producing product like annuities.   Annuities pay out a lifetime guaranteed stream of income.   You cannot outlive your income with an annuity.
Many women are not ready for retirement

Image by National Media Museum via Flickr

Follow The Retirement Plans
  • If your employer does offer a retirement plan, max out your contributions.
  • You can tax deduct your personal contributions.
  • If your employer matches your contributions into the retirement plan, that is free money.
  • If you do not have a retirement plan at work, open an Roth IRA.
Learn, Learn, Learn
  • Knowledge is powerful.
  • Learn as much about financials as you can.
  • Take a financial class.
  • Subscribe to a financial newsletter or magazine.
  • Learn about retirement plans and basic investing principles.
  • Ask questions.

Women Deserve The Best

No one will get you ready for your retirement but you.   No one cares about your retirement as much as you do.  Take charge or your retirement planning the same way you took charge of raising your family.

Even if you have to start investing small amounts of money into your retirement plan each month, it’s okay.   It all adds up.   Do not let the dollar amount of your investment discourage you from investing.

The only investment money that will be there when you retire will be that money which you sent ahead during your working years.