Here's an Expert's Guide to Freedom From Money Anxiety for Women
Do you feel worried about your finances or does money stress you out sometimes? According to a study called the Principal Financial Well-Being Index, more than half of Americans, 56% of respondents say they're more stressed about money now than they were last year. So, if you've ever felt anxious about money, you're not alone. The first step is figuring out what financial peace means to you personally. That might include being able to pay your bills without worry and saving up for the future. Jean Chatzky, the founder and CEO of HerMoney, talks about this idea. She says many women today are looking for financial peace.
In simpler terms, financial peace is about managing your money today while also planning for tomorrow. Chatzky explained this at CNBC's Women & Wealth event, where she stressed how important it is to feel confident that your money will last as long as you do. Experts like Chatzky have some tips for achieving this financial peace.
Finding a balance between debt and savings
According to Chatzky, managing debt and savings simultaneously is necessary to achieve financial security. Speaking about financial health from all angles, she says, "You need to handle both sides of this issue." She points out that one major cause of financial stress is debt. When it comes to the things that make people unhappy with money, it frequently comes in first. But Chatzky counsels women to strike a balance between debt repayment and future planning. She emphasizes how crucial it is to seize chances to protect one's financial future. This includes creating emergency funds, utilizing employer-matching contributions to retirement accounts, and doing other crucial actions.
Winnie Sun, co-founder of Sun Group Wealth Partners, advises starting to save as soon as you can, even if it appears impossible to save a sizable amount of money annually at this time. Also, it's critical to periodically review your investment plans and savings objectives to make sure they still make sense given your current financial circumstances.
Join the investment 'party'
When it comes to investing, women frequently find it difficult to take chances, according to Chatzky. She observes that women typically place a higher value on security and stability and would rather keep their money secure in a bank. Savings are necessary for short-term objectives, but investing is necessary for long-term financial success. According to studies cited by Chatzky, women can be competent investors. She encourages women to get over their reluctance and take an active role in investing opportunities. She stresses that to ensure long-term financial success, one must become a member of the investment "party".
Seeking financial guidance
Chatzky suggests that regardless of their financial situation, women should think about seeking advice from a certified financial adviser. She recommends looking for an advisor who is a certified financial planner (CFP) and has at least five years of expertise. It's crucial to pick someone with whom you can have an honest conversation about money matters.
Chatzky advises getting advice on retirement savings from your company's benefits department if you feel intimidated by the thought of employing a financial advisor. Asking questions and having discussions can yield insightful information. Cathy Curtis of Curtis Financial Planning underscores the importance of women investing time in improving their financial knowledge, especially given potential changes like the presidential election and the rise of artificial intelligence in the workplace. She warns that without a solid understanding of financial principles, women may make decisions that may harm their long-term financial well-being.