Jean Chatzky, CEO and founder of HerMoney, affirms that most women are searching for what she calls ‘financial peace.’ However, this life virtue seems to elude many of them.
While speaking at a Women & Wealth event on March 5, Chatzky said financial peace “Looks like being able to meet my obligations today while being able to save for tomorrow.”
A Woman-centric Event
The event, organized by CNBC, featured 15 financially grounded women from different business spheres. Chatzky was in attendance and, like the other experts on financial matters, made suggestions on how the average woman can achieve financial fulfillment.
Other women in attendance were Vivian Tu, Maneesha Ghiya, Jennifer Shahade, and Marianela Collado, to name a few.
Women’s Empowerment and Financial Liberation
The focus of the Women & Wealth event was to ‘educate, empower, and elevate’ women. The experts in attendance pointed out that wealth is a lubricant that promotes mental and emotional health in women.
So, Chatzky and other experts explained ways of accumulating wealth and ensuring its perpetuity.
The Ying and Yang of Savings and Debts
Chatzky explained that financial freedom and security can only be attained by balancing out two variables, which are debt and savings.
Unfortunately, some women are bent on material acquisition at the cost of indebtedness. So, the recommendation is to plug every loophole through which debt sips into your financial profile.
You Can Be Free From Debt
If you acquire any debt at all, it should be one that can be easily dislodged, and that would improve your credit score.
Chatzky believes a woman must eliminate debt, at least to the barest minimum. She said, “There is no doubt that debt is a huge financial stressor. When we look at the things that make us most unhappy when it comes to our money, debt rises to the top of the list.”
How to Exploit Good Debt
After putting debt in the reins, we can consider the various dynamics of saving. It is equally possible to juggle the two. So far, the debt is structured and well spread out.
If a woman’s income gives her enough allowance to service her debt and simultaneously fund a savings or investment account, let her do it by all means.
Start Saving Now
Irrespective of a woman’s age, it is never too late to start saving and investing. However, they should start early.
Chatzky explained that the only advisable way is the one that leads forward. Stagnating or getting sucked back into indebtedness is not an option if financial peace is the goal.
Forward is the Only Way
Chatzky further reiterates the financial stance women should take by suggesting their “forging ahead, grabbing those 401(k) matching dollars, building emergency cushions and doing the things that allow us to stay afloat once we get there.”
In effect, all the experts who presented at the Women & Wealth event suggested that financial peace is a journey and not a destination.
Cultivate Saving and Investment Habits
Winnie Sun’s advice also resonates with Chatzky’s. Sun is the managing director and co-founder of Irvine, a wealth partners organization.
Sun affirms that it is necessary for every woman to form healthy saving and investment habits and to start right where they are. Sun suggests putting away whatever they can now to make the most of their limited time.
Take Wise Investment Decisions and Calibrate
Despite all the noise about financial reverses and global inflation, Sun suggests that now, indeed today, is the best time to start saving, no matter how small the initial fund is.
Sun explained, “Understand how much you’re saving for your future and whether it’s enough or if the portfolios you’ve invested in still align with your financial situation.”
Women Can Be Risk-averse
Speaking of risks, Chatzky mentioned that, from her years of active investment and advising female investors, she is aware that women tend to take a while before assessing investment risks.
It is inevitable, and they just have to come to terms with it. Chatzky said, “We are very focused on stability, security, and money in the bank.”
Strike a Balance Between Short- and Long-term Financial Goals
If savings will help a woman meet her short-term financial goals, investments are needed to achieve the long-term one. So, since you cannot win all in investments, it becomes necessary to take financial risks.
Eventually, when women get the hang of risk-taking while investing, they often proceed to become the best at the game.
Seek Out a Financial Advisor
Once you decide to start investing or have attained some level of financial freedom, you will need the help of a qualified financial planner.
First, ensure they are certified and don’t become anyone’s lab rat; make sure they’ve been successfully planning other financial portfolios for at least five years. Also, make sure they’re someone you’re comfortable interacting with.
Charge-free Alternatives are Not Bad
If you feel you need more time to afford a financial advisor or your portfolio needs to be bigger, then you may want to take advantage of the benefits department at the organization where you work.
Ask them questions about starting your retirement savings. By extension, you can take the conversations further by asking for tips and advice about improving your finances.
Get Some Informal Financial Education
Studies have revealed that men tend to be more financially literate than women. So, to improve your financial odds as a woman, Cathy Curtis suggests investing in improving your financial knowledge.
Understand how multiple factors affect investment concerns. For example, how the coming presidential elections and the proliferation of artificial intelligence in the workplace may change the trend of the stock market.