Empowering Women: Overcoming Financial Challenges for a Secure Future

Stienemarie Bonsma Potgieter, CFP? – Financial Planner

Women can face unique challenges when it comes to building their financial freedom. These challenges can affect their personal finances and investments, but by addressing them, women can take steps to improve their financial wellbeing and achieve their goals.

Common Financial Challenges

Many women take on the responsibility of managing household duties and caring for others, often putting others’ needs before their own. This can sometimes mean stepping back from their careers, leading to fewer investments in their own name. Open conversations with a spouse or partner about roles, responsibilities, and how income is split in the household can help clarify financial priorities and ensure that both partners are working toward shared financial goals.

Risk Tolerance and Investment Choices

On average, women tend to have a lower risk tolerance and may prefer more conservative investments. While being cautious can be a good thing, it may also mean that long-term financial goals aren’t being met as effectively. It’s important to regularly reassess your investment strategy to make sure it aligns with your goals. For example, you may need to adjust your asset allocation to boost your potential growth or consider saving more to reach your goals should you still prefer a more conservative portfolio.

Getting More Involved in Financial Decisions

Some women may not be as involved in the family’s finances, budgeting, or financial decision-making process. This can lead to a lack of confidence and understanding of how the family finances are structured, especially if the responsibility suddenly falls on them. It may be a good idea to join meetings when your spouse meets with the financial planner, ask questions and become more involved in decisions. This not only builds confidence but also ensures that you’re prepared for whatever the future may bring.

Unique Financial Needs

Women often have unique financial needs, such as longer life expectancies or breaks in their careers to raise children. These factors require a tailored financial plan that considers these life events and goals. Whether you’re working with a joint financial plan together with your spouse or an individual plan, it’s essential to address these nuances so that your financial plan reflects your true needs and helps you achieve long-term financial security.

Financial wellbeing for female investors involves understanding the challenges and unique needs women face, from balancing family responsibilities to building confidence in managing money. By taking active steps to address these challenges—whether through better communication, smarter investments, or more involvement in financial decisions—women can improve their financial outcomes and work toward a secure, independent future

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