Financial planning for women

When it comes to managing and saving money, everyone needs to be able to maintain a healthy financial well-being. That’s why it’s important to start your financial plan now, especially if you want to make sure that you’re comfortable with your money and how you’re investing it in the future.

A lack of confidence is stopping women from taking control of managing their money

However, our recent review of the cost of living found  women are less confident in managing their finances compared to men. After questioning 2,000 people of all ages, from 21 to 55+ years old, and incomes ranging from £18k to more than £100k, about their concerns surrounding the ongoing rise in the cost of living, we found that women lacked confidence more than men when it comes to managing money. 70% of males feel more confident compared to 62% of women.

So, how can we ensure women feel financially independent and confident during the cost of living crisis? If you’re a woman and you’re worried about the rise in the cost of living, then take a look at some of the steps you can take to boost your confidence when it comes to financial planning and saving money as a woman.

Plan to start saving

If you're in a position to start saving and you'd considered any debts you may have, then investing money in your future is a great way to start feeling more confident about your finances and will help put the foundations in place to become financially independent. The first step is to set up a personal savings account. There are different savings accounts with great interest rates, which means you can get a better return on investment for the money you save. Take a look at the personal savings products we have at Hodge.

Set your financial goals

What are your future goals? Whether it’s to get on the property ladder, plan for your retirement or be financially independent, writing down your financial goals will make it easier to visualise what you need to do to reach them.  Having a financial plan in place or talking through your goals with a financial advisor can help you to work out the best way to spend and save your income and stay focused.

Put aside emergency funds

In our review, we found that women are 11% more likely to be concerned than males about the performance of the UK’s economy and how it affects the cost of living and their own finances. As we’ve experienced the weaker value of the pound impacting how much energy, fuel and everyday items cost, it’s important we have enough money to make ends meet. If you’re worrying about the continuing rise of the cost of living and how it impacts your financial position, then putting aside an emergency fund pot could help - if you can of course. Having an emergency fund of your own can help boost your confidence when it comes to money and give you financial independence, as you know you have some funds to lean on if you ever need  extra support. For example, during career breaks or when you have less of a disposable income.

Create a budget

If you’re not feeling confident about managing your finances, then creating a budget is a great way to kickstart your financial planning and will help you to keep an eye on your spending. You can build a budget by calculating your outgoings and taking these from your income. Work out what essentials you need to spend your money on and then give yourself a salary to live off during the month. This will make sure that you have enough money to spend on any activities or luxuries and have money to put into savings. Find out more about budgeting here.

Why is financial planning important?

Having a plan is a great way to navigate your financial journey. Wherever you are with your finances, it's worth making financial plans now to support yourself in the future. Financial planning can help you set goals and show you what you need to do to reach them. Most importantly, it could help you to feel more comfortable with your financial situation and get on top of your spending and savings.

Seek financial advice

If you think you'd benefit from wealth management and financial advice, then we recommend speaking to a financial planner. They can help you with any financial challenges you are facing, provide investment advice and help you understand where to save your money.

_{This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk .}