Become Financially Fit With 8 Tips Especially For Women

Are you financially fit? Are your friends? Do you even know what it would mean to be financially fit? These are hard questions I have to ask myself now that I am in my 40s. I realized I could look for Black Friday deals with the best of them, but there was still A LOT I didn’t know about my finances.

Why It’s Hard for Women to be Financially Fit

1. The system isn’t set up for us to be successful.

When it comes to taking charge of our finances, due to some very real reasons, statistics show women are still falling behind. On average, women have lower retirement balances than men. Many women have no life insurance and aren’t even aware they can get life insurance without a medical exam in advance. Even among the ones who are insured, most are underinsured. Women are more likely than men to have no retirement savings, yet we live 5-6 years longer than men. The system was set up so that men would take care of women financially, but obviously, that has changed. Women don’t need to rely on a man to be financially fit.

2. We don’t talk enough about financial security.

Generally speaking, women often take care of many financial parts in our families’ lives, yet we often don’t talk about how to generate financial security.  Research shows the most important goal for women is having enough money to maintain their lifestyle through retirement. I definitely want to be financially fit in retirement. Will I have enough to retire and still live my same lifestyle? Will my kids and I be OK if something (God forbid) happens to my husband? We have to talk about it with each other!

3. The financial services jargon can be confusing.

The “legalese” I find in financial forms makes me want to scream. The truth is that my strength is not in math, unfortunately, and when I see all the fine print, my eyes just blur over. I have to think about carpool pickup and sports schedules and the writing and editing work I do. It is tough to focus on all the intricacies of financial planning; however, that’s just what I need to do to become financially fit.

4. Women are often time-starved and cash-strapped.

Many women take care of day-to-day budgeting and are responsible for spending much of the household’s money. However, because we also have a dozen other things on our plate, we don’t focus on some of the important pieces of long-term financial planning, such as insurance and saving for retirement. My daily life takes up so much of my brain space. It feels like I am not able to do anything “extra.” But that’s got to change!

In case you haven’t heard it recently, you are loved.

Achieving financial fitness involves adopting healthy money habits and making informed decisions about your finances. I am not an expert, but I found eight tips that can help us become more financially fit:

8 Tips To Become Financially Fit

1. Create a Budget:
   • Develop a realistic and detailed budget that outlines your income, expenses, and savings goals.
   • Categorize your expenses as fixed (rent, utilities) and variable (entertainment, dining out) to identify areas where you can cut back if necessary.
2. Establish an Emergency Fund:
   • Save for unexpected expenses by building an emergency fund. Aim for three to six months’ worth of living expenses.
   • Keep your emergency fund in a separate, easily accessible account.
3. Reduce Debt:
   • Pay off high-interest debt first.
   • Consider using the debt snowball method from Dave Ramsey to pay down debts systematically.
4. Invest Wisely:
   • Take some time to learn about different investment options such as stocks, bonds, mutual funds, and real estate.
5. Save for Retirement:
   • Contribute regularly to retirement accounts such as 401(k)s or IRAs.
   • Take advantage of employer-sponsored retirement plans and any matching contributions.
6. Live Below Your Means:
   • Avoid unnecessary debt by living within or below your means.
7. Keep Learning:
   • Stay informed about personal finance topics, investment strategies, and economic trends.
   • Attend workshops, read books, and follow reputable financial news sources to enhance your financial literacy.
8. Insurance Coverage:
   • Review and update your insurance coverage regularly, including health, life, auto, and property insurance.
   • Ensure your coverage aligns with your current needs, and seek out life insurance without a medical exam in advance.

I’m committed to focusing on becoming financially fit. The first step for me is becoming aware. I need to be aware of my limitations and lack of engagement. I need to learn more about my financial picture and then work to improve it. Will you do a virtual pinky swear and commit to becoming financially fit too?

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