For some women, financial anxiety is a very real obstacle. Financial matters can seem so daunting and confusing, with a lot of anxiety around making mistakes that might set you back even further. It can seem like a huge task to find someone you trust or to even know where to start.
According to the NAB’s latest Australian Wellbeing report:
Women are more worried than men about saving money in a hurry for an emergency, children’s education, rent or mortgage costs.
As research has found, the cause of many women’s financial stress is largely due to the current pay inequity. According to the Workplace Gender Equality Agency, Australian women in full-time work earn an average of 22.8% less than men ($25.8K less).
Alongside this, there is an enormous amount of information out there and it can be difficult to understand what options and strategies are the right ones for you. But that doesn’t mean you can’t get started with small, smart financial steps.
Here are 5 Tips for Dealing with Financial Anxiety and Creating Plans for the Future
1) Start with Budgeting
The Financial Planning Association of Australia believes that financial anxiety comes from job insecurity and loss of savings, especially with economic instability during COVID-19. It’s even harder for women who may be dealing with lower incomes or anxiety around financial matters.
It’s wise to assess your current circumstances and understand all your expenses and financial goals. It’s a rule of thumb to spend less than what you earn, but it’s another thing entirely to have an effective budget that helps you feel confident about your financial future.
I teach budgeting 101 to all my new clients, as having a good understanding of your cash flow allows you to make informed financial decisions.” – Christine Swanson
2) Differentiate Wants from Needs
Detailing all of your household and personal expenses, within a spreadsheet, will help you analyse how much money you need to direct into everyday spending and major household bills.
It will also often provide you with a surplus amount. You can then direct the surplus amount into reducing your debts, savings for specific expenses, investing in your future or simply putting aside an emergency fund that provides you with peace of mind.
3) Rethink Your Financial Goals
Part of being financially secure means investing wisely to achieve your goals. These goals can range from ensuring you can fund all of your household and personal expenses without stress, to becoming debt-free, or saving for a new car, house, holiday or even retirement.
Whatever your goal is, it’s important to know how much you need to save. Implementing a financial strategy is the first step to achieving your financial goals. Reviewing your strategy will help keep you on track and hold you accountable and help you stick to your plan.
It’s important to reassess your personal goals regularly, to see whether they’re still feasible with your changing circumstances. If you find you’re not on track with your savings goals, that’s okay it happens but it’s important to understand why. You may like to seek professional financial advice at this point to understand all options and see how you can take more control of your finances.
4) Kickstart Your Emergency Savings
Anxiety usually comes in the form of uncertainty, such as what will happen if you lose your job or have an unexpected expense. For all of those ‘what-ifs’ in life, it’s important to have a backup plan, in this case, some emergency savings could reduce stress in these scenarios.
Directing a small amount of your income into a separate emergency account will help protect you from unexpected expenses and financial crises. This money can help you deal with unforeseen expenses more effectively. It’s important to save but to also separate income into different accounts to ensure balance to achieve all of your financial objectives and goals together.
5) Seek Adequate Financial Advice
Seeking expert advice from a trusted financial adviser can help you make informed financial decisions. A good financial adviser can educate you, instil you with confidence, and guide you on the right track to help you achieve financial freedom.
If you want to achieve financial independence, wishing won’t make it happen, seeking the right financial advice is essential.
The right financial adviser can tailor a financial plan to suit your specific needs and financial goals in life. They can also provide you with ongoing advice to keep you up-to-date with any significant industry and legislative changes that can potentially affect your financial situation.
As your financial and personal situation changes, so should your plans and goals for the future, having a plan that is reviewed and tweaked regularly ensures financial stability and comfort.
While building your wealth can feel very overwhelming, you can start with small steps and build on those steps as your knowledge and confidence grows, which will help you on the right path to achieving financial security.
Ease Financial Anxiety with Prominent’s Leading Female Financial Adviser in Adelaide
Prominent Financial Services provides everyday Australians and professional women with financial planning solutions. We aim to generate success, satisfaction and confidence through superior service, guidance and education.
Our expert financial adviser in Adelaide can help you take control of your finances and obtain peace of mind for your future. If you are looking for financial advice for women, get in touch with us! We’re excited to help you!
