According to Working Woman magazine (Sept 1995), the most expensive mistake a woman makes is assuming her current financial situation is permanent. In 2019, 24 years later, almost a quarter of a century, NBC news reports that women’s biggest financial mistake is that they are less likely than men to invest their savings.
As a result, women are missing out on significant #wealth.
The deck still tends to be stacked against women. In the sixties, the wage gap was about sixty-eight cents to the dollar, meaning that for every dollar a man earned, a woman in a similar position would earn only sixty-eight cents. We think that with the rise of “women’s rights” and the “feminism” movement of the 70s, that things have improved. They have, in some ways, but they still are not equitable. 47 years later, the wage gap is at 20%, or eighty cents to the dollar, in 2017. That’s a rise of TWELVE cents on the dollar over 47 years! That translates to progress of one-fifth of one cent per year. That doesn’t really sound like progress to me! Does it to you?
According to an analysis by the Institute for Women’s Policy Research, if current trends continue, that 20 percent gap is not likely to close up for another 40 years in the United States.
In addition, #women miss out on #significant #wealth because they are not #investing their #savings at all or as aggressively as men do.
A recent survey taken by Fidelity Investments revealed that only 29 percent of women actually see themselves as #investors. This trend really needs to change. It starts with us respecting ourselves as much as we allocate respect to others. We, as women, must see ourselves as financially savvy……AND….as investors!
Because of the wage gap and the time we are more likely to spend raising a #family and caring for other family members, instead of earning income and saving, women are 80 percent more likely to be impoverished in #retirement according to the National Institute on Retirement Security.
So, not only do women need to save as much as they can, but they simply MUST be invested in the stock market to some degree in order to stay ahead of inflation and the decreasing earning power of the dollar over time. I also advocate women running a side business from home in order to bring in extra money that can be put to use growing your investment account.
Wise gardeners say “the best time to plant a tree is today.” In other words, it’s going to take time, so get started today. Make a commitment to invest in yourself by “paying yourself first.” Set aside whatever you can to put in your long-term #savings and talk to a trusted #financial professional to learn the best #investments for your individual situation. If you’d like some additional info or help making decisions about your financial future, call us. That’s why we are here.
Sources: O’Shea, A. The Biggest Financial Mistake Women Make. Nerdwallet. NBC News Better. February 7, 2019. Accessed February 18, 2019. URL:https://www.nbcnews.com/better/amp/ncna968836
Stanney, B. Secrets of Six-Figure Women. 2002. Pg. 214