Whether we want to admit it or not, women’s finances differ from men’s.
Regardless of relationship status, knowing about the differences between a woman and a man’s financial challenges means we can embrace our unique wealth attributes as women.
What we earn
Statistics still indicate that women earn 16 per cent less than men in Australia.
Ways to overcome this include the important skill of being more assertive when negotiating a pay rise.
If you’re a job seeker, you have the opportunity to negotiate more aggressively.
There are many tools available online where you can benchmark your current salary against others in your occupation and industry, which will make you more confident negotiating your salary.
What we save
Women tend to put household finances and expenses first.
This means that your own ‘rainy day’ savings come second or even third on the priority list.
Instead, you should be ‘paying yourself first’ by regularly putting away even just a little of your salary.
How we budget
It is crucial to compare your income to your expenses so you can clearly see where your money is going.
Women and men are different in this respect because of what we spend our money on and what we allocate as discretionary vs. necessity.
It is not necessarily about changing your spending habits, it’s about awareness and planning and financial goal setting.
What do you want to have financially in 5 years?
Budgeting is important for both genders, however coupled with the other challenges women face financially, curbing spending and ensuring your income is wisely spent is even more pertinent.
Australian women statistically live four years longer than men, so women need more of a retirement ‘nest egg’.
To do this, you can do a few extra things to ensure you boost our superannuation balances.
Make personal contributions to your super fund.
The government will also make a co-contribution, up to a maximum amount of $500.
You should also consider estate planning. Wives statistically outlive their husbands so making sure both of you have your wills, power of attorney and power of enduring guardianship up to date is vital.
Women face unique challenges in terms of making money and also in making that money last longer.
The good news is that women have equal access to investment opportunities, and assistance from finance professionals so we all have the capability to control our own financial future.