 Coronavirus has created chaos worldwide. Read on for tips to help you handle this health and financial crisis.
Times are tough! We're here to help.
Welcome back to Invest in You: Ready. Set. Grow's supplemental Money 101 guide to financial wellness during these trying times. Today is Women's Equal Pay Day, which symbolizes how far into the year women must work to earn what men did the previous year. Women in the U.S. who work full-time are paid 82 cents for every dollar paid to men. Moms earn 75 cents for every dollar paid to fathers and single mothers bring in 54 cents for every dollar earned by married men, according to the National Women's Law Center.
March also marks a year since the start of the coronavirus pandemic, which has had a disproportionate impact on women.
The pandemic is also impacting women's retirement savings. Seventy-two percent of women with investable assets of $100,000 or more said the crisis has negatively impacted their ability to retire, according to a January survey by Nationwide Retirement Institute.
We'll take a look at how to manage your money, get your retirement planning back on track, and return to the workforce after a career break, as well as how to navigate the burnout and financial stress that is hitting so many women.
Thank you for already undertaking your journey to financial wellness. We hope these supplementary lessons help ease your concerns.
Sharon Epperson
WOMEN AND THEIR MONEY
Managing your money In order to manage your money well, first make sure you have an emergency fund in a safe place, such as a bank account, even if it is not earning much interest. Don't aggressively invest it.
Experts suggest putting aside enough to cover three to six months of expenses. If money is tight, you can even start with $25 a month and increase it over time. The best way to make sure the money goes into savings is to have it automatically deposited.
Disability and life insurance are also important in protecting you and your family if you become sick or die.
Saving for retirement The first thing you should do is get a handle on your financial situation. By understanding where and why you are spending your money, you may be able to uncover any inefficiencies.
When putting money into a retirement account, don't just save what's left over. Instead, treat it like a bill that must get paid every month.
By the time you hit retirement, try to have different buckets of money to pull from, such as a 401(k) or individual retirement account, a Roth IRA, and an investment account.
If your employer offers a match in your 401(k) or 403(b), try to contribute at least that amount. If you don't have a 401(k), set money aside into an IRA.
Contributions to a traditional IRA are made pre-tax, which means you'll be taxed upon withdrawal. Post-tax contributions can be made into a Roth IRA, but there are income limits. If you are married and filing jointly, you can contribute the maximum of $6,000 (or $7,000 if you are age 50 and over) if you make less than $198,000. If you are single, you have to make less than $125,000.
Handling financial stress and burnout To tackle your money anxiety and financial matters, you'll have to address your shame and fear - which are the two biggest barriers in your way, according to financial therapist and coach Carrie Rattle, CEO and founder of New York-based Behavioral Cents.
Shame is about what others think, Rattle explained. Women believe they should know how to manage their finances better. Yet, with the Covid-19 pandemic, many people are in the same position - knowing very little about what comes next.
To deal with fear, you'll have to address your ego, which can't separate when you are looking at your finances or staring down the throat of a saber-toothed tiger, Rattle said. She suggests naming your ego and saying, "thank you for sharing" and flicking her off your shoulder.
Bear in mind that when you have financial stress swirling around in your head, it may actually feel better than the actual problem. Get everything down on paper, such as your income, and expenses. Address the issue while you are still feeling the financial pain, because when things improve you won't get around to it again.
If you're burned out trying to juggle it all, have conversations with your boss and peers about goals at work and flexibility around them. Prioritize what is urgent and what you can let go - both in the workplace and at home. You can also try practicing emotional detachment when confronted with an issue that makes you frustrated or resentful. In other words, observe something but don't absorb it.
Also, try to work in time during the day for yourself, such as eating lunch away from your computer or using your old commute time for yourself and not work.
"There's a real pay gap. People can argue about how big, but that's almost besides the point. The point is that every women, every girls deserves to get paid what they're worth." — Sheryl Sandberg
Returning to work after a break Whether you have been out of work for six months, six years or more, you may be worried about getting back into the workforce. Yet the most important thing to do is to own the gap in your resume with confidence.
Reach out to past colleagues, classmates and friends and let them know you are open to new opportunities. Start a LinkedIn profile, if you don't have one, or make sure the one you have is up-to-date with a professional-looking photo. You can alert recruiters by using the site's "open to work" feature.
You may not have been working a paid job, but you have been using important skills on your break - so sell them to potential employers. Transferable skills include good communication, team building and problem-solving. You can also take online courses to upskill on LinkedIn or sign up for continuing education courses at a local college.
Make sure your resume is updated and you include any certifications you've received or courses you have taken, as well as any volunteer work you have done. Lastly, do your research on the companies you are targeting, as well as the interviewer.
The bottom line Whether it is finding a job, building financial security or coping with burnout and money stress, women have some tools available to help. However, those who feel they need additional services - whether it is mental or financial - should reach out to a professional for assistance.
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