The Importance of Financial Wellness for Women
It’s a new year! Regardless of how you feel about making resolutions, we hope you will take time this year to get in touch with your personal finances. When you ask questions and wrap your mind around the ins and outs of your finances, you climb into the driver’s seat and help secure your financial future.
An important first step towards financial wellness is to be (or become) knowledgeable about your personal finances. It is not uncommon for women to lack confidence with finances or to delegate financial management to other people in their life. It is critically important for women to fully understand their personal finances.
So where do you start to gain this understanding? Here are some tips to build your financial confidence and knowledge:
- You must know 4 key things about your finances. If you have no idea, start with the people who do—your partner, your financial advisor, and your CPA. Keep asking questions until you understand.
- What you Own (Assets)
- What you Owe (Liabilities)
- What you Earn (Income)
- What you Spend (Expenses)
- Don’t ever be afraid to ask “dumb questions”. I find that the people who profess to be the least knowledgeable about finances actually ask the best questions. If your current advisors cannot talk about this stuff in plain English, find someone who can. No one should ever make you feel foolish about finances, and if they do, they are not supportive of your financial wellness.
- Have a team of advisors who support you. If you do not have a team that you love, build one. Women excel at connecting and communicating, so use this skill. Get recommendations from family and friends and conduct interviews. The key is to select advisors who are truly partners, who you can talk to about anything and who you know have your best interests in mind.
- Take time to set financial goals. You should have short-term goals like paying off credit cards and long-term goals like saving for retirement. A great financial advisor can help with all of these goals.
Like any aspect of wellness, financial wellness requires your time and attention. You can’t just ignore it and hope it will happen. Taking these steps will put you in control of your financial life and move you towards true financial wellness.
If you would like to learn more about what it would look like to work with our team, give us a call at 612-203-2718.