Whether you tend to save or tend to spend, or whether you’re a low-income earner or a high-income earner, women of all walks have one thing in common: financial worries keep them awake at night. Money stress can be just as toxic as other worries in our lives, if not more so. And the research is clear – stress can lead to myriad health problems, and even early death.
It is not an exaggeration to imagine that women who live from paycheck to paycheck would worry about their finances. But it turns out that wealthy women who do everything they’re supposed to do financially (like paying their bills on time, saving and investing) experience stress.
“Overall, women in particular are concerned because there is a lot of uncertainty,” says lead retirement expert Ann Lister, education fellow at the Alliance for Lifetime Income and former head of retirement solutions at JPMorgan Asset Management. “It’s an unknown combination of not knowing how long you will live and how the markets will live.”
According to new research from HerMoney and the Alliance for Lifetime Income, nearly three in five (58%) women worry about their financial situations at least several times a month. For 28% of them, it’s a few times a week, and 14% of women said they worry about their money every day. (Only 10% said they had complete control over their financial stress.) Astonishingly, even among women with an annual household income of more than $200,000, nearly half said they worried about their finances.
So, what exactly is keeping women across America up at night? The competing financial forces are one. The lack of adequate savings is another. Then there is the desire to earn more which has many women worried about money. Among older women, running out of retirement savings is a major concern. (After all, we know that women tend to outlive their male counterparts by about five years…and we have to be prepared.)
While all of these are good reasons for losing sleep, there is no need for them to cause you to worry. There are ways to take your financial concerns head-on, and make sure you’re in full swing for a successful retirement, whether it’s ten or thirty years in the future.
Enhance your financial knowledge
Knowledge is power, especially when it comes to overcoming money fears. Simply put, the more you know, the less you worry. The women in the HerMoney/Alliance for Lifetime Income poll support this. Those who took the steps necessary to create a retirement income plan worried much less than those who didn’t. “Financial knowledge provides a context for people so that things can be seen more holistically and grounded in history,” Lister says. “Financial context has significance and history. Financial literacy helps with both.”
Fortunately, the internet and technology have changed the game of financial literacy for women around the world. Today there are a plethora of online tools, tutorials, videos, tutorial articles and simple software packages that can help you learn the basics. This may sound crazy, but saving money for retirement can be a lot easier than figuring out when and how much you can actually spend in retirement. Women should seriously consider talking to Certified Financial Expert, Who can help create a financial plan that will enable you to achieve your short and long-term goals, whether you have $5,000 or $5,000,000. It’s a common legend financial professionals It is only for the wealthy. According to a HerMoney/Alliance for Lifetime Income survey, 80% of women who don’t know how to build wealth find themselves worrying several times a month about their finances, compared to just 50% who know what they’re doing.
Share your money
Playing the role of financial manager of your family’s money is vital to achieving financial independence and peace of mind. If you don’t know exactly how much money is coming in, where it is being taken out, and where your money is actually being invested, you won’t know whether there is cause for concern or not. “The most important thing for you to move forward with confidence and participation is to take an inventory of what you owe and what you own,” says Lorna Kapusta, Fidelity’s Head of Investors and Client Engagement. “You can then identify opportunities to do more with your money.”
Talk about money and don’t be afraid to ask for help
Unfortunately, even in 2022, women may be afraid to talk about their finances or may be reluctant to make financial decisions themselves. (And this is one of the reasons why we normalize women talking about their money!) When we have questions hanging over us, it can lead to paralysis and inaction. When you talk and ask questions, you can reduce your money concerns. “There are no stupid questions if it’s your money,” Lister says. “They all Good Questions.”
And if tasks before seemed stressful, this is where the financial planner can come in. He or she can help you create a plan for achieving your short and long-term goals, explain how things are working, and calm you down when things are going south. The best financial professionals will become your trusted partner throughout your financial journey. “Speaking as a woman who has gone through the vicissitudes of financial planning, the antidote I recommended for anxiety is financial education, the right financial career, and adequate protected income to cover your basic expenses throughout your stay,” says Jan Statler, CEO of the Alliance for Lifetime Income.
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