As per the report released by the National Institute on Retirement Security (NIRS), women have less income for their retirement age than men. The report also revealed that women aged 65 have 25% less income than men. The main reason behind this less retirement fund is less income. Even in this century, women earn less than men. 

Women have to balance their work and family life; thus they often fail to focus on their career. They don’t care about their earning deficiency and suffer at their retirement age.

Thus, this is the high time women should empower themselves to take control over finances so that they can live a financially peaceful life.

How should women manage their finances?

There’s a disconnection between what women know and how they act when it comes to personal finance management. Why do so many women delegate their financial responsibilities to their husbands and allow divorce or financial infidelity to force them into poverty? Why do so many women spend an amount that is much more than what they earn and become overburdened with debt? 

According to the National Center for Women and Retirement Research, a study shows a direct relationship between a woman’s characteristics and her financial habits. Openness to change, an optimistic outlook and assertiveness are some qualities that tend to lead to smart financial decisions. 

If a woman is not sure about her finances, she will land up in debt. Give equal importance to money and relationships. So, girls, this is the time to show your talent to save money for your future.

Here's how women can take control of their financial future:

Learn to say “NO”

Most women are compassionate to those who are in financial need and they end up lending money and not keeping track of them. Such emotional money mistakes must be avoided as this may push you towards the vicious cycle of credit card debt. Learn to say ‘NO’ irrespective of any other consideration.

Manage your money on your own 

Financial experts say that most women hand over their finances to their partner as they’re scared of managing them on their own or are following an old-fashioned role. If you want to be in control of your financial destiny, you have to be an active participant, not just by paying your bills on your own but also by assessing your investments.

If you have many debts that you know you can't repay in full, then seek debt settlement to get out of those pesky debts.

Also, consolidate or settle your student loan debts. If you have a federal student loan, then choose the right repayment option to get out of debt fast.

These options will help you to repay your debts. Once you repay all your debts, you can concentrate on saving more for your retirement age.

Live a frugal life

You must be aware that frugal living is the best way to save money for a secure financial life. If you can curb your extravagant financial habits and start living a life below your means by following a budget, you can easily save a lump sum amount of money for retirement. It is always better to stay on a budget than to incur debts.

Get out of your current debt as soon as possible

To start saving for your financial future, you should get out of your existing debts first. If you have multiple credit card debts along with huge monthly bill payment pressure on you, then consolidate your debts and bills to simplify your monthly payments.

Stop using your credit cards

With the financial crisis brewing in the US, you must always use cash instead of credit. The more you dig into the credit card debt, the more you’ll be in danger if you’re managing your finances alone. 

When you go grocery shopping, never whip up your plastics as all this will add on to your high-interest debt. Carry cash and use it instead of using credit. Also, make sure you don’t buy things that you can’t own with cash.

Follow the budget

You must follow a budget so that you can keep track of your monthly income and debt obligations. A frugal budget is a necessity and you may have to sacrifice specific things like eating out and buying things that you can do without. Monitor your savings through a budget so that you can stay on top of your finances.

Learn how to save money for retirement days

You may think that you’re helping your children by paying for their school fees but this is a myth. You can help your children by saving yourself first. When you retire, you’ll not become a burden to your children if you have ample money. 

Therefore, save enough money to secure your post-retirement years by contributing money to your workplace retirement fund. Running into debt helps companies while you’re already retired can create stress in your personal life too.

Start saving for money once you start doing a job. If your employer offers a 401(k) plan, start saving money into this plan. Don’t withdraw money from a retirement account early. Try to capture your employer's match to maximize your retirement savings.

Dive into investments

Apart from your traditional savings plan and bank accounts, you can try to go for investments that get you better returns. Investment options can help you multiply your money and retire in a better way. But try to remove every doubt and inhibition from your mind. 

Try to find the type of investment that is most suited to your finances. Only then will you be able to avoid costly mistakes. Try to start small so that you don’t lose a lot of money.

Purchase suitable insurance policies

You can purchase insurance policies to protect yourself from unforeseen mishaps that may happen anytime. The 21 st century women are wise enough to keep themselves secure by purchasing different insurance policies like health insurance policies, car insurance policies, etc.

Hire a financial consultant

If you think you can’t handle your finances on your own, you must get in touch with a financial consultant. Many can assist you in dealing with your money and taking the right steps about your financial obligations. The consultant can also assist you in saving money toward your retirement.

Lastly, don't panic that you can't save enough for your future as you have so many obligations in life. Rather be proud as this is something that you can easily do by being a bit knowledgeable about your finances. Muster up your courage and keep your eyes on the goal so that you can examine all your financial worries and save as much as possible for your financial future.