4. Helping women bridge the money inequality gap
While women are just as likely as men to know what gives them joy and purpose, our research found they score lower on having a financial plan and a clear picture of their future self1.
As women often have disrupted work patterns, career gaps and work part-time – their financial plans are often put on hold due to more pressing and immediate priorities. Even though there is a gap between men and women’s finances, there are solutions which can help bridge the inequality gap and help women to get on track to improving their financial wellbeing.
- Take more time to think about the longer-term, rather than just the short-term. What really brings you joy and purpose?
- Seek financial advice – a financial adviser could help you create a financial plan and get you get on track to improving your financial wellbeing.
- If you have a partner – talk to them about your situation and share possible solutions to improve your situation. Could you create a joint financial plan by reviewing your expenses and identifying how to save more money?
5. Being able to cope with a financial shock
Having a financial safety net in case something unexpected happens, is a key part of financial wellbeing.
Putting a small portion of savings to one side – a rainy-day fund – will allow you to feel confident that a sudden financial shock, like the freezer breaking down or having to make repairs to your car, will not throw your finances off track or push you into debt.
Financial shocks will happen. The trick to overcoming them is, to simply, think ahead. A money safety net can create peace of mind. By saving little and often into a rainy-day fund can help us weather any financial shocks that might come our way. As well as this, having the right insurance and protection cover in place based on your personal situation could also help bring you better peace of mind.
6. Having a long-term financial plan in place
Ultimately, it all comes down to having a financial plan for life in place. It can’t be reiterated how vital it is to take the time to sit down with your finances and understand how to get them in order.
Consider these key points when you’re writing your long-term plan:
- Joyful and purposeful activities you want to do in 5, 10, or 15 years’ time. This might look something like, ‘In 10 years I want to be able to work part-time so I can begin writing novels’.
- Your money goals. Maybe you want to buy a house, pay off your credit cards, or have enough to retire early.
- What you want to tackle and in what order. Is paying off debt or your mortgage your priority? By how much do you want to boost your rainy day (freedom) fund? Consider using the retirement income calculators mentioned in the long-term savings section of our financial wellbeing index.
- Think about using a personal statement to focus your mind on what you want to be and do in the future. This might look like, ‘In retirement I want to have enough saved to see more of the world and live closer to family’.
Don’t forget about your pension
A retirement fund is a longer-term financial safety net to allow you to have an income in retirement. Chances are you already have one – or multiple pension pots. Putting aside a bit from your salary every month into a pension pot could help you live comfortably based on your needs and wants when you stop working.
Additional resources to help you
These are only some of the benefits of improving your financial wellbeing – our Financial Wellbeing Index has more hints and tips to help you get you on track.
You can also try our financial wellbeing tool which provides you with a range of articles, resources, videos and podcasts which are tailored to you.
Get help if you need it
If you're in any doubt, we recommend you speak to a financial adviser. You can find a financial adviser through MoneyHelper. A financial adviser is likely to charge for their service and should provide details of their charges upfront.
1 How you can improve your financial wellbeing, page 12-15, 37. Data source, Aegon, Financial Wellbeing research carried out in August - September 2020, 10,000 respondents. Flipbook first published March 2021.
2 Money and mental health. Data source, Mind, 2020.