It is important for women to protect their finances for many reasons. Although huge advances have been made in terms of gender equality, there are still challenges faced by women when it comes to financial security.

Why is it important that women take steps towards Financial Security?

It is a fact that in Ireland, women are more likely to live longer lives than men. This means that their money may have to stretch a longer period of time. Women may need to rely on their own savings and financial resources until well into old age, which makes retirement planning crucial for women.

In addition, the sad reality is that oftentimes women earn less than their male counterparts, and in general it can be harder for women to protect themselves financially should they be faced with a rainy day such as illness or job loss. Women are more likely than men to take career breaks to care for children or elderly parents, which can impact their salary and pension schemes.

A relationship breakdown can be particularly detrimental to women who are not financially independent, making it more difficult to meet financial obligations if unexpected expenses arise. Woman can also be left in a vulnerable position if her partner or spouse passes away. Without proper financial independence, there may not be access to sufficient funds to cover basic living expenses, to care for children, to start again or handle the legal fees associated with a separation or divorce. All of these factors make it crucial for women to take an active role in managing and protecting their financial wellbeing.

So, what are some steps I can take to protecting myself financially as a woman?

  • Create a budget and stick to it: Knowing how much money you have, your regular expenses, and how much you can save will help you plan for the future.
  • Each relationship is different, but some couples like to maintain separate bank accounts to ensure they always have control over their individual finances.
  • Save for emergencies: Having an emergency fund equal to at least 3-6 months’ worth of expenses can help you avoid debt and be prepared for unexpected expenses.
  • Determine your financial goals and work towards achieving them depending on what stage of life you are at. This may include saving a deposit for a house, or researching options for Investing which can provide a long-term strategy to grow your wealth.
  • Plan for retirement. It may seem a while away to some, but it is important to educate yourself about the various pension types and tax relief that may apply so that are you armed with the information you need in order to maximise your own finances in retirement.
  • Protect yourself and your assets: Consider protecting yourself and your assets with insurance policies, like life insurance (in the case of untimely death, this would protect your family financially), specified illness cover or income protection. This is especially important if you have dependents such as your spouse or children.
  • Reduce your debts: Pay off or restructure debts with higher interest rates first.
  • Consider getting financial advice from a professional. This could be from a financial planner or an accountant, who can offer expert guidance on managing your money and investments.
  • Make sure you are familiar with your legal rights and entitlements. This may include accessing government benefits or entitlements, such as maternity leave or social welfare payments. Know your legal rights in a marriage, particularly regarding property and inheritance, and ensure everything is properly documented.

Ensuring that you take steps like these will help you to take control of your finance towards your journey of Financial Empowerment.