HOW TO FINANCIALLY PLAN FOR 2024 AS A WOMAN
Rebecca Robertson
Specialists expert in female financial advice| Award winning | Ted-X Speaker | Author | Podcast Host
A recent report by the Financial Reporter revealed that career breaks, often taken for personal and family reasons, result in an average annual loss of nearly ￡2,500 in retirement savings for women – making it difficult when considering how to financially plan for 2024 as a woman. Financial planning can be challenging for many women, but you don’t have to let these challenges stop you from realising the future lifestyle that you have been dreaming of.
The new year is not that far around the corner, and there’s no better time to review and optimise your plan for your finances than now. Have you been looking to learn how to financially plan for 2024? This article shows how you can confidently seize opportunities to navigate the gender pay gap, career breaks, and other challenges that make it difficult for women to thrive financially.
How do you prepare for the future financially?
If you’re struggling to learn how to financially plan for 2024 as a woman, here are five simple ways to do so:
1. ASSESS YOUR CURRENT FINANCIAL STATUS.
Assessing your financial situation gives you a clear picture of your financial position and identifies areas that need improvement.
Are you spending more than you earn? Are you saving enough to meet your goals? Taking stock of your finances is a simple way to find your answers.
A few ways you can assess your financial situation are:
Calculate the difference between what you own and what you owe to see where you stand financially.
Review your monthly expenses and spot areas where you can cut back. You can achieve this by using good expense tracker software or apps
Evaluate your outstanding debts, which may include loans, mortgages, and credit card balances
Examine your sources of income to see whether they are reliable. If you rely on one source of income, consider diversifying your income streams to reduce your financial risk.
2. SET REALISTIC FINANCIAL GOALS
What is a better way to start the year, if not with clarity? As a working woman, setting realistic financial goals provides you with a clear vision and makes it easy to determine your financial aspirations.
You can start by listing the top three financial goals you intend to accomplish; these goals can range from saving for emergencies to investing for the future or funding education.
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3. CREATE A BUDGET
Regardless of the financial milestone you want to achieve as a woman, budgeting helps you reach them faster.
The thought might seem overwhelming, but crafting a budget is quite manageable. Once done, minor adjustments can accommodate changing income or spending habits.
You can use a budgeting app or personalised spreadsheet to calculate your net income, list your monthly expenses, and prioritise your spending.
4. ALWAYS INVEST
According to a New Age UK Analysis, at least one in every five women pensioners is living in poverty.
Following the findings of this study, we can see how important it is for women to invest wisely and close the retirement savings gap to achieve financial security in retirement. There are various investment options to build wealth and secure your future.
It is best to choose investment options that align with your goals and risk tolerance.
5. PLAN FOR MAJOR EXPENSES
Are you planning to purchase a house, a car, pay for school fees, start a business, or have children? If so, now is the time to start saving for these expenses. Putting aside a small portion of your monthly earnings can significantly reduce financial strain in 2024 and increase your chances of achieving your goals.
FINAL THOUGHTS
That’s it! If you read to this point, you have successfully learned how to financially plan for 2024 as a woman. By implementing the ideas in this piece, you would be ten times more aware of your finances and prepared for the future.
Greening up the accountancy sector | Account Excellence 2024 shortlist ??
1 年Thanks Rebecca. That’s a really interesting stat. I hadn’t thought about how women lose out on savings
Operations Director | Chartered MCSI Financial Planner to Company Owners & HNW Individuals
1 年Great article Rebecca, I always say start investing what you can as soon as you can on a regular basis, the compound growth on these contributions over many years will be so much harder to make up by bigger contributions later on and that might never happen...
Regional Manager Money and Pensions Service
1 年When I worked at Age UK I saw so many women that had relied on their husbands to deal with all the family finances, often to the detriment of their wives who lived longer and did not know how to manage money. Let alone deal with a 50% spouse pension if they were lucky. So important for everyone to engage with their finances at an early age and on a regular basis. Thanks for highlighting Rebecca.
Senior Administrator
1 年Working part-time for 14 years definitely impacted my ability to put money into my pension. I did continue to contribute, but at a lower level than before I had children. I increased my contributions, once I started working more hours, but it will take some years to mitigate that period of lower investment. An excellent article, thank you.