These empowering strategies can help women take bigger financial strides over the long term.
International Women’s Day (IWD) is celebrated around the world on 8 March every year to highlight the social, economic, cultural, and political achievements of women.
At the same time, IWD draws attention to ongoing challenges faced by many women including financial inequality.
Various federal government data shows that Australian women typically earn less than men and have lower superannuation balances. There are also fewer female investors than men, according to the ASX Australian Investor Study 2023, and females that do invest often have more conservative investment strategies than men.
But there are a range of ways women can potentially improve their long-term financial outcomes.
We draw on a number of previously published Smart Investing articles to list six ways women can take steps to get financially ahead.
1. Understand the basics of investing
For anyone starting their investment journey, it’s important to understand your financial capabilities and to create clear and achievable long-term goals.
2. Consider seeking financial advice
Vanguard research has shown the people who engage with a financial adviser generally will take more purposeful action to prepare for retirement, particularly in debt management and budgeting, and are much more likely to be confident in funding their retirement.
3. The importance of budgeting
Putting some money aside in order to achieve financial goals must first involve knowing where money is being spent. That way it’s easy ways to potentially reduce expenses and increase savings. There are various types of budgeting strategies.
4. Starting the investing process
There’s a common misperception that in order to start investing, you need a large initial sum and lots of time. Here’s why this is a myth.
5. The power of making regular investments
A simple ongoing investment strategy can deliver substantial returns over the long term. Just by adding $100 per month, an initial investment of $1,000 into the broad Australian share market on 1 July 1993 would have compounded to more than $166,000 by 30 June 2023.
6. Make extra contributions to your super
Even small additional contributions have the potential to boost your retirement savings, thanks to the low tax rates on super contributions, potential investment earnings, and compounding growth over the long term.
Conclusion
Women face a range of financial challenges, however equally there are various steps can take to overcome obstacles and achieve long-term financial success.
Seeking out financial education and resources, building a strong support network, and working with trusted financial advisers can help women navigate the complexities of investing and build a secure financial future.
We are here to offer guidance to help you achieve your financial and life goals. Feel free to contact us at 08 82314709 or send us an email at info@centrawealth.com.au.
Article courtesy of Vanguard.