Women and money, how to achieve financial success as a member of fair sex

Women and money, how to achieve financial success as a member of fair sex.
1st of March, 2019

The road to financial success is daunting, particularly for women. Whether you are earning far above the national average or are living day-to-day, women of all income brackets are bound to face the same problem; the odds always seem to be stacked against you.

Difficulties experienced by women handling their personal finances are prevalent. A woman earning 85 cents to a man’s dollar , as the ever so infamous wage gap reveals, is only the tip of the iceberg. Divorce, smaller average super fund balances, additional living expenses and higher rates of financial abuse are some of the obstacles that stand between women and wealth.
Yet, these obstacles are being overcome every day. With more women graduating university than men and more women breaking into industries that have been formerly bogarted by men, it’s no wonder that the many young women are defeating challenges as herculean as financial success.

And the women who secure their wealth are turning heads! We have seen to helping women improve their financial lives and watched as their worlds lifted to heights they had once believed to be unreachable.
For starters, know what you are worth! A common thread that ties almost all of our female members together is that they all understate the value they bring to a workplace. Women, more often than not, find themselves being underpaid and are too anxious to negotiate their salaries.

A good example of the impact that workplace undervaluing has is gender gap in Australian superannuation. An average Australian woman’s lifetime super balance for a 65-69 year old is $320,895, less than two thirds of the male average, $370,086 . Why is this the case? Glaringly, the gender pay gap is a major contributor. Alongside this, the fact is that many employers do not pay super on parental leave. As soon-to-be mothers leave the workplace or reduce hours for extended years to embrace the responsibility of parenthood, they often accept whatever paid leave they can get without even considering the option to negotiate. Thus, the superannuation gap remains wide open.

Women are forced to take it upon themselves to make sure that they’re paid what they’re worth. Many businesses operate under the “don’t ask, don’t get” paradigm, relying on the silence of their employees to keep profit margins high. Many bosses won’t give you a raise or bonus if they see no reason for it, so don’t to count on them. Even if you think of your boss as a paragon of benevolence, it is handy to know how much you’re worth.

Pursue Wealth has personally worked with many women to develop strategies that allow them to overcome their anxiety and negotiate for a higher pay. We have a four step quick strategy designed to help women overcome their anxiety when approaching their bosses about a promotion, raise, bonus or other employee benefit.

● Investigate: Find out the exact amount that someone of your occupation, experience and productivity is worth relative to others. Find out how much your co-workers are earning, view job postings for comparable positions and use free online salary databases, such as payscale.com, to determine if you are actually paid the amount that your job description entails.

● Get braggadocios: Write a list of all the things you have recently achieved in the workplace. Now consider how all of those accomplishments have contributed to the success of the business as a whole. Then outline what incredible ideas you have to help the business achieve their vision. Although this may seem haughty to you, listing what you have done for a workplace in recent memory will let your boss know that you are aware of your value, even if they are not at first.

● Play it cool: Ask your boss for a time to discuss your salary at least a week in advance. This will allow them to prepare for your promotion and prevent them from deferring to the age old “it’s not possible to consider right now”-excuse.

● Make critical decisions: When all is said and done, you have to make a decision that will inevitably impact your future. If your boss is unwilling to see the value you bring to a workplace, perhaps it is time to move on. Basking in the security of your current job is of no use to you if your contributions aren’t being recognised.

Secondly, save as much as you can. Budgeting is essential to all those who want to reconfigure their financial lives. More than likely this will cause for a change in your spending habits, which can be frustrating. Especially with more than 80% of gendered advertisement targeting women than men and with more female-only types of consumer goods, it can be frustrating for women yearning for more frugality in their everyday living.

Many women who have come to us spendthrift are now frugal queens. Our work with clients that struggled with careful spending allowed us to identify the core of the issue: people’s inability to differentiate between a need and a want. Usually, people will define a “need” as something that is essential to your survival and a “want” as anything else. I reject this understanding of needs and wants.

Sure, you don’t need a phone to “survive”… but you need to have phone line for most internet services and permission forms. Sure, you don’t need clean clothes or shower to “survive”… but you may find yourself at risk of social exclusion, whether intentional or not, if you aren’t well kempt.
We believe that due to the level of complexity associated with modern living, the line that separated needs and wants has become blurred… So much so that marketers are able to play off of this. Marketers use spending triggers to convince you that you need something that you would otherwise classify as a want. Here are four common spending triggers to look out for (with our fixes for them).

● Price Reductions. A reduction in the price of a good is a tactic used by stores to clear out stock in a small timeframe. It is a historic, global practice that is highly effective.
– Fix: Remember that you never save money by spending it, even if the price is reduced. You only feel as though you need it because the price is lower. The drop in price doesn’t improve the product.

● Flash Sales. These brief sales are designed to panic people into making purchases. Nowadays, flash sales thrive on group deal websites which people are drawn to by marketers.
– Fix: If subscribed to group deal websites, unsubscribe from all group deal sites and distance yourself to all flash sale related phenomena.

● Compulsion. Some purchasers experience a “shoppers high” which has been likened to the addiction of cigarette smoking. As compulsive shoppers often shop purely to achieve this high, marketers present many products to lure these types of consumers.
– Fix: If you think you are shopping for the mere thrill of it, you should try to seek elation from healthier outlets, such as exercise or meditation.

● Trends. A lot of products are created with the intention of riding a temporary wave of popularity. Trends have become commonplace due to the prevalence of social media.
– Fix: If you think you want to purchase something solely due a trend, carefully reflect on previous trends you have brought into only to regret making the purchase when the trend died.
Monitoring your expenditure is only half of saving. A lot of saving involves putting the wealth you already have to better use, such as the purchase of shares. An investment in shares should be considered if you are earning enough to cover your expenses. Even if you are only able to invest a tiny slither extra each month, investment options are open to you.
Historically, shareholding was restricted to men with plenty of money. Nowadays, it is a very different scene. There are many different types of investment options, it is important for you to know which one is most apt for your current situation. Here are affordable cheap options for women who are keen to get in on the action:

● Managed Funds through Wrap: Investing in a managed fund via a wrap platform is drastically cheaper option than paying an investor. At $1,000 to start with increments of $100 per month, this is a good option for those who are unfamiliar to shares.

● Online Trading Account: An online platform that allows you to purchase all your shares directly with minimum increments of $500. You should only consider this route if you are either already share savvy or are willing to expend the time (and money!) on becoming share savvy.
Not only do investments lock down your money, they will give you the benefit of knowing that your money is working for you.
Lastly, get empowered in your relationship! Your -partner or spouse should be encouraging you on the road to financial success. Many of our members significant others are ecstatic at their partner’s aspiration, working together to achieve their goals
Alas, as occasionally seen in our practice, this isn’t always the case. Some people feel as though they will lose control over their partner as they become financially independent, which can lead to financial abuse.
According to the Royal Melbourne Institute of Technology, 15.7% of Australian women will experience some form of financial abuse in their lifetimes. Husbands are four times more likely to financially abuse their wives than vice versa. Here are three signs that are indicative of financial abuse:

● Career control: Your spouse exercises an unjustifiable amount of influence over your career, which he may leverage by convincing you to work less or quit your job entirely.

● Credit damage: Your spouse is maxing out or otherwise misusing your credit cards in a way that damages your credit and ergo your future ability to secure loans.

● Financial gaslighting: Your spouse is deliberately causing you to doubt your own ability to spend money, which he may do by demanding full accountability for every cent you spend or by demanding you request permission to make small purchases.
We have helped many women on the pursuit of wealth escape financial abuse and implore those who are experiencing financial abuse to seek help. Free counselling services for women experiencing financial abuse is available between 9 to 5 Monday to Friday on the Australian WIRE Woman Helpline: 1300 134 130.
We believe that financial abuse is best prevented before the need for treatment if possible. This makes it paramount to talk to your partner about your financial aspirations. Your spouse is more than likely to be supportive of your goals if they make note that of the joys it can bring to your relationship, such as a combined income. By cluing your partner in on everything money related, you avoiding any money related catastrophe in a relationship.
It can be off-putting to talk to your partner. You or they may never seem to find the “right time”, or you fear that they may have difficulties understanding where you are coming from, or you fear that they will be too stubborn to listen to. Here are fresh ideas for women who want to talk to their partners about finance.

● Money Date: Setting a time and place to talk about making money together. This can be anywhere but preferable somewhere quiet where you can talk at length, i.e. a quiet café.

● Discuss: Share your goals and how you plan to achieve those with your partner. This will permit room for the necessary deliberation and reasonable compromise, on such things as home expenditure, will lend compatibility to your financial plans and the relationship.

● Think “Us”: Finish every thought with both you and your partner in mind. Try to see the mutual benefit that every step you take towards financial success and explain why you think your relationship will gain from it.

We pride ourselves on having helped many women achieve financial independence throughout the years. The triumphs over unique obstacles and different priorities that women have when en route to financial success have been inspirations to the team at Pursue Wealth.

If you’re a woman looking to triumph financially but are unsure on how to get started, please book a chat with us: www.pursuewealth.com.au/chat. We would love to hear from you.

[1] https://financy.com.au/gender-pay-gap-hits-record-low-as-female-workforce-grows-financy/

[2] https://www.canstar.com.au/superannuation/how-much-super-for-retirement/