Taking control of your finances with a financial plan is necessary for everyone, whether individually or for a household. In many families, men have been accountable for maintaining financial plans for their families. However, it is crucial that women are equally involved in financial planning, especially today, when 43% of full-time employees and 64% of part-time employees are women, according to the Department of Labor, Women’s Bureau.
What is a financial plan, and who is it for?
Simply put, a financial plan is a strategy for managing your assets and accomplishing your goals. “Financial plan” may seem like jargon for the wealthy, but financial plans are beneficial to everyone. Life happens. Children are born. Parents age. Financial plans prepare people for unexpected life events and provide comfort.
What does a financial advisor do?
A financial advisor acts like a quarterback — talking to every team member involved to form a strategy with the end game in mind. To do that, it’s important to score a goal. “Team members” in financial planning include the individual or family’s attorneys, CPAs, insurance brokers and others. “Scoring a goal” means being prepared for life events, such as an unexpected death in a family or a job change. A financial advisor helps organize and take care of the chain of events impacted by the event which may otherwise be overwhelming for an individual.
How should women start planning for their finances?
The continued keyword is preparedness. Here are some tips for women who haven’t started investing: