Lucy, a high-level corporate executive, works stressful 60-hour work weeks and has little time to deal with the financial and medical paperwork on her desk at home.
She soothes her anxiety with retail therapy, shopping for clothes she can well afford. Putting the purchases on credit cards is “out of sight out of mind” to her.
Lucy knows her credit report doesn’t represent her level as a professional and she doesn’t have the energy to get her financial matters in order.
This is just one case study of a successful woman who is not dealing with her finances in a healthy and effective manner. Her sense of overwhelm about money may stem from many other things connected to being a successful female professional.
Even though times have changed, research shows that women continue to deal with a lack of financial literacy, which can lead to serious repercussions.
Such repercussions include:
- Taking on large amounts of credit card debt
- Defaulting on student loans
- Having trouble managing expenses
- Difficulty preparing taxes
- Trouble managing financial investments
How can Lucy get better at taking control of her financial life?
- Learn your credit score: Get a free annual credit report at AnnualCreditReport.com.
- Keep a record of your personal debt: Track progress on paying off debt and celebrate small victories.
- Make a budget: Set limits and recognize the difference between needs and wants.
- Open a savings account: Online banking makes it easy to open a savings account and set up automatic deductions.
- Pay overdue bills: Don’t ignore debt collectors and try to negotiate affordable payments which will eliminate late fees.
- Plan for retirement: Talk to a financial advisor about your current situation and how to start planning for retirement now.
Consider asking for help. Lucy very likely thinks she can do it all, but with her work schedule and lack of financial expertise, she’s at a deficit. Working with a trusted financial advisor will help her plan for retirement and make the most out of her money. An experienced Daily Money Manager can assist in using up the right financial technology (fintech), set up a budget, and show her how to use tech tools to track her spending. For more information on the role of a Daily Money Manager, click here.
