The pay gap between men and women is real. Although women have come a long way with the gap slowly declining over the years there’s still significant difference. Women working full-time today take on home on average 78c for every $1 men earn. Throughout the year, this can add up to a difference of $26,393!
So, what can you do about it?
Marissa shares her five top tips for what you should be doing as a woman to manage your finances.
Tip #1 – Tell your money where to go.
One of the biggest lessons that I’ve learnt in my life and career is it doesn’t matter how much money you make, but it’s what you do with your money that counts. So, because of the gender pay gap, women must be smarter with money. Instead of wondering where your money goes, you need to take a proactive approach, a proactive responsibility to know and control where your money is going. Make a budget, pay yourself first and stick to it. Set some financial goals. If you need help with this get a money mentor or financial planner, someone that can help you along the way.
Tip #2 – Save and invest more than men.
Research shows that women make much better investors than men, because we spend more time researching investments and we’re better at matching our goals to our investment. So, work out what your current goals are and how much money you have to invest to achieve them. Set a timeline and consider your short term, medium term and long-term goals.
If you need assistance, reach out and build the team around you that’s going to support you with your goals. Also, make sure you understand what you’re investing in. Educate and upskill yourself so that you can really keep track of your investments and understand what’s going on. Don’t let the gender pay gap affect your long-term financial freedom. You can start saving and investing more today.
Tip #3 – Boost your superannuation balance.
Due to the gender pay gap and unpaid career breaks, Australian women are on average retiring with about half the amount of superannuation as men which is really alarming. So, I’m asking you to take a proactive approach, proactive action to boost your superannuation. Explore salary sacrifice options where you’re contributing a regular amount from your pre-tax pay into your superannuation account which also saves you on tax.
Tip #4 – Be more proactive.
Ask for the elusive pay rise, know how much you’re worth, do some research and understand what others in similar positions are earning compared to what you’re earning. It’s great to know this information before going into pay negotiations and don’t be scared to upskill yourself with training or getting the extra qualifications that will get you the pay rise that you deserve.
Tip #5 – Get a money mentor!
This is someone that you trust who will guide you to put your money to better use. Your financial success does not depend on your next pay rise, it depends on what you do with the money that you get and a money mentor will help to make sure that you’re making good money decisions that will enhance your current and future life, make sure you’re keeping more of your money for longer and really investing that money wisely. If you would like to know more about how you can get control of your finances, contact the team at Rise High here or leave your details below.