3 Smart Money Moves Every Woman Should Make

March is Women’s History Month. While women should be celebrating every day of the year, I’ll admit that it’s a really great time to focus on women’s finances in particular. Positively changing the way you save, invest, and think about money can help you enjoy more security, freedom, and happiness. Here are three key steps you can take to improve your finances this month and beyond:

1. Save for emergencies

Can you handle a $500 emergency with your savings? According to SecureSave, 63% of U.S. employees fail to do so. Increasing your savings account balance is one of the best things you can do for yourself.

A general recommendation for an emergency fund goal is enough cash to cover three to six months’ worth of regular expenses. But if you’re starting from $0, it probably sounds difficult. So don’t focus on that. Instead, focus on making savings contributions a regular part of your financial life.

Some people find success through automation. For example, you can set up automatic transfers from your checking account to your savings account on a regular basis every time you get paid. Once your money is in a high-yield savings account, it will grow even faster as interest accrues.

And if you don’t make enough money to save much, I’ve been in your shoes. Increasing your income was the only way to save. Consider asking for a raise at work or changing jobs. This may be a more effective way to increase your salary than assuming your current employer will do so. You could even have a casual side job for a few hours a week. There’s nothing better than getting a big bill from the auto mechanic and finding it to be more of a nuisance than a disaster.

2. Investment priorities

Did you know that women are less likely to save for retirement than men? According to 2018 data from the U.S. Census Bureau, 50% of women ages 55 to 66 have $0 in personal retirement savings compared to 47% of men. And since this data is a few years old, it makes you wonder how much worse the problem has become, after years of COVID-19 and inflation worsening many people’s personal finances.

Moreover, according to data on female investors collected by The Motley Fool, we are actually more successful investors than men. This happens despite the fact that we are actually less likely to do so (sadly, the persistent gender pay gap leaves us with less money to put in). This can be explained by a more conservative and less impulsive approach to investing.

Investing your money to grow for your future (especially retirement) is absolutely important. You may find it difficult to get by on Social Security alone. If you have access to a 401(k) or other employer-sponsored retirement plan, it’s an easy way to get started. And if you qualify for an employer match on your contributions, it’s like getting the money for free. If you don’t have access to such a plan, you can easily open an IRA, whether Roth or Traditional. A Roth IRA grows your money tax-free, but a traditional IRA now lowers your taxable income.

3. Maintain at least some financial independence.

I certainly don’t shy away from advocating for women’s financial independence. Actually, yesterday I was talking to my downstairs neighbor. She is currently weighing her employment options after leaving a toxic work situation, and her lovely boyfriend is making great strides financially. I sternly warned her to never leave herself without her money and a way to earn it. Domestic violence (in 94% to 99% of cases it has a financial component) can happen to anyone, and life can be unpredictable even in the best of relationships.

Even an amicable breakup can leave you in serious financial straits. After my divorce a few years ago, I had a serious fear that I would end up living in my car because I couldn’t afford all my expenses on my own. Fortunately, the situation was okay. But this doesn’t apply to all women.

This doesn’t mean that women shouldn’t share their rent with anyone. Living alone is expensive. And if you’re in a relationship, you likely have shared financial goals, such as having children, buying a home, or retiring early. Be careful when combining finances with others. For example, it’s a smart idea to open a joint account for joint bills and maintain your own bank and retirement accounts. And investing in professional development to ensure you have the ability to maintain your job and increase your income is one of the best ways to maximize your financial growth.

This is the best time in history to be a woman. But we still haven’t reached equal pay and equal access to human rights. This is true even in wealthy countries like the United States. Use these tips to build your financial success and the opportunities that come with it.

NOTE: Our top-tier cashback cards now offer a 0% introductory APR through 2025.

This credit card isn’t just good. A truly outstanding card that our experts use personally. Features a long 0% intro APR period, cash back rates of up to 5%, and no annual fee!

Click here to read the full review for free and apply in just 2 minutes.