Overcoming Financial Setbacks: Financial Planning Tips For Women

The last few years have been rough. The pandemic left many of us unemployed or underemployed. Post-pandemic, gas prices, food costs, and inflation are on the rise. As such, savings are drained, and credit card debt is higher than ever. Not to mention student debt and debt that’s been rising for years. These 5 financial planning tips for women will help you get back on track.

#1 Let Your Shame Go

You aren’t alone if you’re feeling discouraged about your finances. In fact, finances are one of the top sources of stress in the United States. This stress can manifest as insomnia, headaches, anxiety, and depression.

Perpetually beating yourself up about your past financial setbacks doesn’t get you anywhere. What’s done is done and can’t be changed, so let it go. Then, turn to the tips below to set the foundation for your fresh start.

#2 Compile Your Debt and Assets

If you haven’t yet, add up your debt. Don’t just calculate how much debt you owe to each debtor, but also the interest rates for your debt. Interest compounds, so you must determine which debt is costing you the most in interest. Your high-interest debt should be paid down first. This step should include getting your credit score and credit report from all 3 credit bureaus, as there might be some debt you’ve forgotten about. You must also search for errors on your credit report.

In addition to your debt, make a list of your assets. This includes homes with equity as well as your 401k, investments, and personal assets that have monetary value.

#3 Contact Your Debtors

Contacting your debtors is one of the most powerful financial planning tips for women. Instead of avoiding their outreach, reach out to your debtors. They want to be paid and will gladly make payment arrangements with you. Be bold, asking them to reduce debt, reduce interest, or lower your monthly payment.

If you have debt in collection, make an offer for around 50% of what is owed. You’ll have to pay this amount off in a lump sum, but it can eliminate some debt and ease your financial stress.  

#4 Diversify Your Income

Between increased inflation, the gender pay gap, and (if relevant) the racial pay gap—you’re likely to be making less money than you deserve. Don’t leave your earning potential solely in someone else’s hands. So, ask for a raise. If not now, during your next performance review. Approximately 35% of women have never asked for a raise, but 3 out of 4 who do receive a raise!

Beyond making more money where you are, search for ways to diversify your income. We’re in the day and age of the side hustle, so consider how you can make even a few hundred dollars more per month. Or much more than a few hundred dollars per month! From freelancing to driving rideshares and selling things online that you no longer use. Split what you make between your nest egg and paying down debt. And yes, treat yourself once in a while!

#5 Seek Professional Expertise

You don’t have to navigate financial recovery alone! There are countless free and inexpensive resources that can help you optimize your existing income, take a strategic approach to debt, and plan for retirement.

It’s as simple as performing an online search for “Suze Orman” and reading her countless free tips. Or purchasing one of her books to expand your financial literacy. You can also look for local debt counseling services and financial planners who specialize in getting your finances back on track.

Which Financial Planning Tips for Women Will You Start With?

Serenity Wellness Journey is here to help you achieve and maintain peace while you create your new financial plan. It might feel helpless today, but you can get back on track! If you need further assistance schedule a free consult where we can work on your Personal Success Plan for Financial independence and a life of Health, Wealth and Happiness.

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