- March 15, 2022
- Mark Elwes
Do Women Really Need a Financial Advisor for Managing Money Better?
Table of Contents
According to a recent statistic, 47% of women have been facing mental health issues owing to finances,” and out of which “only 12 women ask for help from a financial advisor.”
Women live longer and pass on the estates to the next generation. Hence, it is important for a woman to be financially sound. Women can redefine their financial equation with the help of financial advising.
The importance of women’s role in the decision-making process can’t be understated, from managing monthly expenses to taking out unsecured personal loans. They are fabulous investors and financial managers. And professional financial advice could bridge the gap to maximizing finances and grant more financial freedom to women.
Multiple factors influence financial planning for a woman:
- Gender roles
- Child care
- Maternity leave
- Volume of employment
- Gender pay gap
- Wealth accumulation
- Passive income modes
- Family role model
- Professional and industry
Given these multiple aspects, planning and reforming finances are indeed challenging aspects for a woman. Thus, a woman can encounter them by:
- Develop a clear idea about your life’s goal. In life, what are you saving for? Your family, your child, or yourself?
- Be transparent about your financial outlook with your friends, family, or your better half.
- Ensure to keep your financial documents up-to-date. It reflects your consciousness and eagerness to multiply income sources and ensure a well-planned future.
- Keep track of the liabilities like doorstep loans like provident and rationalize your dreams unstoppable.
Now, let’s analyze how taking financial advice can help women:
How can a Financial Advisor Help Women Save More?
According to a recent statistic by Fiscal Studies, “Mothers were 15 times more vulnerable than fathers to losing jobs or being furloughed. The lack of support for child care and child care expenses resulted in 35% of workers losing their jobs.
Even when you take pandemics out of the equation, women face multiple issues like gender gap, gender pension gap, and ignorance of their role in investing and the stock market.
Apart from this, managing loans for single mums on benefits in the UK along with other responsibilities and liabilities significantly affects their lifestyle.
Faced with these challenges on the route, it is imperative for women to ensure financial well-being. And here are why women need financial advice quite more often.
1) Evaluating habits and creating a budget
A single man earns more than his counterpart. However, women are better at managing expenses. They still need to evaluate their spending and analyze the unnecessary ones. Basic budgeting can help women keep track of finances and carry out expenditures accordingly.
The best way to do this is by itemizing spending and separating the frivolous or impulse purchases from the unavoidable ones, like doorstep loans, like provident. Sometimes, evaluating finances helps one grab the spending pattern and reform it immediately.
Managing finances is all about ensuring more financial freedom along with meeting priorities.
2) Working moms should evaluate insurance
Whether they continue to work or stay at home for childcare, a woman must evaluate the insurance policies and update them immediately.
Insurance helps cover important and immediate expenses like medical and job loss sometimes. Identify the insurance policies and analyze how you can improve your lifestyle by ensuring better financial security.
According to the source, “only 56% of women have life insurance”. Despite the over-arching costs of raising a child in the UK. The average cost of raising a child in the UK is £185,000 as a single parent. Thus, loans for single mums on benefits UK can indeed benefit mothers seeking immediate financial help to meet their needs.
In addition, if the couple is planning a baby being professional, it is high time for the women to take control over finances and define-futuristic financial strategies. It will help them overcome financial distress and ensure a financially secure future for children and families.
Having a financial advisor by the side can help women make informed financial decisions. They can plan the future by having futuristic insurance policies.
3) Plan Retirement Savings
According to Global Women and Money Study 2021, UK, “Women in the UK typically live longer than men, but have 51% fewer retirement savings.”
With the general notion of being – man is the caretaker of the financial world; women are less likely to be involved in saving for retirement. Well, as equals, women need to ensure a good financial backup, as they are good at managing money and other expenses. Women as single mothers or wives can start planning for retirement early, in their 20-30-40s.
Thus, having a financial advisor by your side can help you plan and invest using the ideal tools. Making and making big investment decisions requires confidence, which is why a financial advisor is important.
4) Plan your long-term financial goals
Women are visionaries and far-sighted. Thus, along with ensuring comfort and happiness in the present moment, they look forward to creating a bright future for themselves and their families. Unfortunately, many individuals are confused about where to invest and how to save for the future.
A financial advisor can help eliminate the dualities of thoughts with a holistic understanding of one’s finances and provide personalized monetary advice.
A financial planner and advisor can help a person define realistic financial goals and provide ways to achieve them without a significant failure. Besides this, he can help women take and manage doorstep loans like Provident hassle-free without affecting their budget.
5) Boost the savings
How can women maximize the amount they earn currently?
How can women improve and increase their savings?
How can a woman overcome traditional barriers and dominate finances after pandemic lay-offs?
These events or aspects bother one or another often. But securing answers to these questions with a well-defined plan is something a woman looks forward to. A financial planner, especially a woman, helps plan and achieve financial goals better. Women can relate to a woman’s struggles, whether they are professional or personal, and give personalized financial advice.
According to Forbes, women prefer a woman financial advisor for financial advice. It is because a woman’s financial advisor is happy to listen to a woman’s challenges and lifestyle and answer the weirdest questions with no second thought. It is in response to some financial advisors, who prioritize selling financial products instead of heeding to their clients’ grievances and financial issues.
Financial advice that takes into account a woman’s personal and professional circumstances can have a significant impact on her life.
6) Understanding the taxation regime
Well, no matter how much you ensure financial well-being, taxation can’t be ignored. Thus, managing and increasing finances along with meeting tax obligations is something only a few master.
It is a critical aspect of leading a peaceful life. Missing out on taxes can only lead to future worries and debt. And it may affect the possibility of sustaining or paving the way for effortlessly unsecured personal loans. Individuals in the UK are taxed according to the salary bracket or the benefits they receive.
And many individuals are clueless about the tax bracket they fit in. Therefore, having a financial advisor beside you can help sort things out for you. If you are looking forward to creating a financial plan and dedicating a separate account for meeting taxes and other obligations, you can consult a financial advisor.
He/she will help you achieve mental peace by highlighting the major taxes you qualify for and developing a sustainable financial strategy to meet those without stress. For example, how can you make for taxes by investing or multiplying savings?
7) Help women Invest better
“Women, on average, are more successful investors than men.” It is because they are more rational and reactionary to making financial decisions. However, men are risk-takers. They take part in investing rather than being reactionary to that. The right financial advisor can help women figure out the right equities or shares to invest in. They can feel confident in their skin to have greater financial success and control. When it is about investing, having backed by knowledge can do wonders for women investors.
So, Do Women Really Need Financial Advisor?
Well, yes, they do. Women play multiple roles in defining a society’s structure and contribute to its well-being and economy equally to men. Thus, they require financial advice to tap into their dreams. Ensure more dominance over finances for a suitable present and future.
Mark Elwes is the Editor-in-Chief at Extramilefinance. He is a notable member of the content strategy team since his joining in 2017. Driven by his fondness for the finance industry, he has spent years gathering as much knowledge as possible about various financial products that include loans also. Previously, Mark worked as a senior journalist writer with experience in writing blogs and articles.