Studies have revealed that three out of four companies pay their male staff more than their female staff, and in nine out of 17 sectors, men earn 10% more than women. Apart from the gender pay gap, they are forced to work part-time because they are to look after their families.
Studies have found that 90% of women work for companies with a gender pay gap. They cannot manage to meet all household expenses from their income. Problems exacerbate when you are a single parent.
Research has shown that women generally have a smaller retirement pot than men. There is no clarity when the gender pay gap will come to an end, but there are several ways to rev up your financial position. Here are the practical money tips that you can use to make your life financially better.
Several women do not know of their self-worth. When you take an interview and negotiate for salary with your employer, you often find that sometimes they agree to offer you what you ask without any further negotiation. You should research to know the industry price. You will unlikely understand what your colleagues are earning and expecting.
Not identifying your self-worth is also one of the reasons for being underpaid. Some women do not intend to make investments. They earn and save. This is not how you can build financial wealth for yourself. Investment is crucial, no matter what. This can prevent you from losing the value of your money.
If you want to create wealth or a retirement fund, you will have to learn to invest money. You can hire an investment expert who can analyse your investment goals and risk tolerance capacity and then suggest to you some assets you can invest in.
Your partner’s finances should not be a need
Some women think that they can easily avoid financial hardships if their significant others earn a good amount of money. This is why they do not bother about money when they have to make a big purchase like a mortgage or car.
Experts suggest that you should never plan for another person’s income if you want to reach your financial goals. No matter how big a purchase you have to make, a rule of thumb says that you should have enough money to do that. Your partner’s expenses should only be a bonus, not your need. If your income is meagre, find another job with higher remuneration.
Change the career stream if you can or if you have an opportunity to do that, provided it allows you to earn higher money. You should grab some more work. For instance, a part-time job can help you make some more money.
Have a separate account
Although you and your partner both contribute to meet all household expenses, you should never forget to have a separate account where you will put some money every month. Treat it like a savings account, and do not dip into it until there is a financial emergency.
Even if you live with your partner, you should never underestimate the importance of setting aside money. Building an emergency cushion is imperative to ensure that you do not end up borrowing money for little unexpected expenditure.
If you have a joint saving account with your partner, you should not choose a particular number to save if there is a huge gap in your income. Try to contribute a fixed percentage of your income, for instance, 10%. This will put less pressure on your finances.
Manage your debt smartly
You cannot build wealth unless you get rid of debts. Whether you have a small debt or a large one, they eat up a large chunk of your money because of interest payments. Such rates immediately go up when you have a poor credit rating.
Try to borrow money only when there is a financial emergency. It does not make sense to take out a loan to fund your everyday needs. You should create a budget and carefully track your spending to not spend more than your pocket allows.
In this way, you can save some money for a rainy day. Borrow money only when your savings fall short. If you need to take out a loan to be paid in instalments like unsecured loans for bad credit, try not to have a repayment term too long.
You can be tempted to opt for choosing a longer repayment term because it makes monthly payments smaller, but there is a catch. This will increase the total cost of your debt. If you have a poor credit score, try to build it so you do not have to borrow money at high-interest rates.
Apply for a credit card or credit building loan. Pay off the debt or bills on time. Your lender will inform credit reference agencies of your timely payments, and your credit rate will boost.
Do not wait until 30s to start pension
You should start contributing to your pension as soon as you enter employment. Many people think that it is too early to do that. You should begin with it until you turn 30.
The sooner you start, the better it is. It can be quite tough since you have many other expenses, and you may not be earning enough. Stop making such excuses and dive into it if you do not want to run out of money in the golden years of your life.
It may seem quite tricky to you as a woman, but you can easily manage your financial condition. Follow the tips mentioned above.