Essential Financial Knowledge Every Woman Should Have

The Importance of Early Financial Planning

Many women experience financial difficulties in their later years due to a lack of early financial planning. There's no reason for any woman to endure a lower standard of living in the second half of her life. However, many do because they continually postpone planning for their financial future until it's too late.

In some cases, a woman may not know what financial provisions have been made for her, or she may feel uncomfortable asking. If she doesn't marry, she must provide for herself, but often fails to do so. It's easy to overlook the importance of saving when you're young, healthy, and enjoying life. However, relying on luck is not a reliable strategy for securing your future.

Life, as John Lennon wisely said, is what happens to you while you're busy making other plans. Therefore, it's better to prepare for the unexpected, as the older you get, the more unexpected events occur.

The Need for Financial Independence

Women need to prepare for financial independence just as much as men do. The concept of the "family breadwinner" is becoming less common as many women either provide for themselves or contribute significantly to the family income.

However, what happens if your spouse passes away and their income disappears? Or if you suddenly can't work? Often, the result is a significant decrease in the family's standard of living and quality of life. This can be particularly devastating at a time when comfort is most needed. While no amount of money can replace a loved one, regular savings can make the difference between sadness and absolute despair.

The only way to ensure you can cope is to take matters into your own hands and ensure you are adequately provided for.

The Lack of Personal Savings Among Women

Despite being natural savers and valuing security, three out of four women have no personal savings. Some have a small amount saved in a savings account or building society, which is fine for short-term savings but doesn't offer a chance for the money to grow into a substantial sum.

Many women who have saved see the demands of early marriage consume their savings and lack the motivation to replace it later on, assuming everything will be provided for.

The Implications of Longer Life Expectancy

Women, on average, live longer than men, which means they have a higher chance of being left alone. This is not a time for financial hardship. Some women manage to lead active and fulfilling lives in their later years, even when living alone. However, in most cases, these are women who have made provisions for their financial security.

State pensions are being drastically reduced worldwide due to an aging population. Therefore, it's crucial to take responsibility for your own financial destiny and commit to saving a portion of your income.

The Impact of Divorce, Desertion, or Separation

One in three marriages ends in divorce, desertion, or separation. While divorce can sometimes be a blessing, it can also be a tragedy if it results in a lower standard of living and the inability to provide the family with the little pleasures they're accustomed to.

A woman who plans her own future is not only able to cope if something happens but is also less likely to have it happen.

The Importance of Facing Reality

Thinking about potential hardships doesn't make them happen. Using this as an excuse to avoid financial planning won't prevent these hardships from occurring. It's time to be proactive. By assessing your situation and taking action, you're not tempting fate, but taking a positive step towards ensuring that you can cope with whatever life throws at you.

Financial independence is crucial for women. Without it, many of the rights women have fought for are hardly worth having.

The Final Word

Whatever you decide to do about your financial security, take action. Plan for the future and let financial services products like life insurance work for you. They don't have to be a burden or a nuisance to you and your family. As Winston Churchill once said, "If I had my way, I would write the words 'insure, insure, insure' above every household door."

No matter where you are in life, make a plan to achieve financial independence. Then put it into action.