Smart Money Hacks Smart Women Can Utilize Today
In the realm of financial independence, women have come a long way. It’s essential to recognize the strides made, especially considering that it was only in 1974 that the Equal Credit Opportunity Act (ECOA) was passed in the U.S., allowing women to open financial accounts without facing discrimination based on gender.
So, dear reader, here are some valuable financial strategies tailored for women, brought to you by TheSmartAsset:
Boost Your Savings
If you haven’t yet ventured into the world of high-yield savings accounts, now’s the time. Data from The Ascent reveals that only 31% of Americans benefit from savings accounts with an APY of 4% or more. By leveraging such accounts, you can earn passive income. For instance, we’ve accumulated over $1,000 in additional earnings this year, thanks to an APY of 4.25% from my bank.
Explore our curated list of top high-yield savings accounts, many of which offer APYs exceeding 4% or 5%. Online banking platforms often provide competitive rates, given their reduced operational costs compared to traditional banks. Choose wisely, keeping an eye out for any hidden fees.
Invest in Your Future
The number of women actively investing is growing. According to The Motley Fool, 67% of women now invest outside of retirement plans, a significant increase from 44% in 2018. However, there’s still a gap in retirement income between genders, with women’s retirement income averaging 83% of men’s. This disparity can be attributed to various factors, including limited financial education, the gender pay gap, and a general lack of confidence.
But fear not! With the right brokerage accounts, you can begin your investment journey. Remember, you don’t need to be an expert from day one. Start small, educate yourself, and grow your portfolio over time. If stock picking seems daunting, consider investing in an S&P 500 index fund, which mirrors the broader market’s performance.
Seek Expert Advice
Contrary to popular belief, financial advisors aren’t exclusive to the wealthy. Engaging with a Financial Planner can transform your financial outlook. With their guidance, you can navigate through debt, set realistic savings goals, and lay the groundwork for future investments. If you’re considering professional financial advice, ensure your advisor is a fiduciary and verify their credentials.
Know Your Value
The gender pay gap persists, with women earning $0.82 for every $1 earned by men in 2022, as per the Pew Research Center. Additionally, queer women face an LGBTQIA+ pay disparity. To address this, research salary benchmarks in your industry and engage in open discussions about compensation with peers. If you discover pay discrepancies, initiate a dialogue with your employer and seek legal counsel if necessary.
Empower yourself with these financial strategies and remember you have the power to shape your financial future.
Legal Disclaimer: Investing involves risks, including the potential loss of principal. Before making any financial decisions, it’s essential to consult with a qualified professional to understand the risks and potential rewards. TheSmartAsset does not provide legal or investment advice. Always conduct thorough research and seek expert advice when necessary.
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