Women were hit especially hard by the coronavirus pandemic and several have their financials slowly recovering in the emergency room. Women already tend to lag behind men in several financial areas like overall retirement savings and that’s due to a plethora of reasons including the famous gender wage gap, however it’s time to reassess finances after last year’s lockdowns. Economic activity is picking up as people begin to have greater confidence that the virus is under control.
Here is how women can get their financials out from the emergency room:
Reassess those Financial Goals and Pivot where Needed – The pandemic caught everyone off guard and could have pushed back womens’ retirement timeline and other big ticket price items. It’s important to revise those goals accordingly, set new timelines in place and be gracious with yourself as you pivot to meet those same goals, just in a different time frame.
Debt – The pandemic forced many to take on debt in various ways to stay afloat during 2020. Now the focus should be on working with a monthly budget, if possible that goes to paying down that debt. Start with the easiest debt to get rid off and any high-interest debt that continues to compile on a monthly basis.
Savings Funds – It’s the year to rebuild that savings nest egg as many were forced to dip into it, if one existed. A good rule of thumb is to have three-months worth of savings, however depending on your unique circumstances this might not be feasible or it might not be enough so adjust accordingly. What matters is that you pay yourself first and make saving a top priority. Digital banking apps can assist with this task. Monifi’s banking app lets you see all your purchases in one simple view, and you can allocate different savings pots for new savings goals.
“To attract money, you must focus on wealth. It is impossible to bring more money into your life when you are noticing you do not have enough, because that means you are thinking thoughts that you do not have enough. ” Rhonda Byrne, Author of “The Secret”
Adjust to your New Normal – Many things shifted last year and inflation might be driving up costs for many items and services across the board so it’s important to budget wisely so you do not end up overspending.
People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.” Joan Rivers, American Talk Show Host