When it comes to building their wealth, women, in particular, can be left vulnerable as they navigate the gender pay gap, the super gap and the gaping hole in their earnings, while taking time out to be carers.
Given that, we’ve put together some tips based on our experiences to help women like yourself get ahead of their finances, come what may.
Negotiate a pay rise
New research conducted by the Harvard Business Review found that women do, in fact, ‘ask’ for pay rises as much as men do, however, they’re far less likely to ‘get’ them. The study also suggests that while men are successful in negotiating a pay rise 20% of the time, women were only successful 15% of the time.
Women often allow a self-limiting belief to hold them back, whereas men tend to be more successful by being brazen and direct. It’s important to be factual about what you bring to the table and not talk yourself down before getting yourself to the negotiation table.
There are a number of ways to negotiate a pay rise with your boss:
- Be prepared – make sure you know exactly what you want and how you are going to justify the raise.
- Go with a win-win attitude; it’s a discussion about the value you bring to the organisation. You need to provide a valuable solution to their problems, by giving examples.
Once you’ve negotiated your pay rise, how to save the extra cash comes down to a number of factors. These include where in life you’re at, the need to access funds instantaneously, investment risk profile, short/medium and long-term goals and objectives.
You should use your pay rise to invest. Think about how to utilise this extra disposable income for your long-term financial success. You’re not always going to have that extra money to set aside through your different life stages. You might be unemployed for a bit, you might have to stay home if you have kids. If you move out, you’ll have to pay rent, or, pay off a home loan.
Save during maternity leave
While having a baby is one of life’s most rewarding moments, the financial pressure of maternity leave can be stressful for some. It’s important to prepare or review your household budget, so you have a clear picture of expected cash flow. A good idea is to group your fixed expenses like your home loan and utilities as these are your monthly non-negotiables, then you can make smart decisions around which areas of discretionary spending you value most.
There are ways to alter your finances in line with the additional expenses that come with kids. It could be cutting down on impulse purchases and wasted food, or taking advantage of government benefits such as the Child Care Subsidy.
Making the most of government assistance is an important one, especially if you decide not to return to work after maternity leave.
Manage financial equity in marriage
Financial equity in marriage is essential. It’s rare for couples to enter a financial relationship with the same amount of savings, income or debt, so while inequalities are natural, it’s important to get on top of them. We suggest putting together a budget that both partners can agree on.
If possible, it’s a good idea to make room for discretionary spending for each person – that way the budget doesn’t feel too stringent and the couple is more likely to stick to it.
Build wealth through super contributions
When it comes to super, it’s important to start with the basics and consider consolidating your super funds if you have multiple.
If you are working full-time, part-time or are a casual you should check that your employer is paying your 9.5% Super Guarantee (SG) every quarter, especially for employees of small businesses. If the company liquidates, you could be left short on your entitlements which will affect your financial situation in life.”
Relying on your employer’s 9.5% Superannuation Guarantee (SG) contributions alone, may not provide sufficient funds for you to achieve your retirement goals. Taking active steps to also boost your super through extra super contributions, could mean a better quality lifestyle in retirement.
Now you can also grow your super with Super Rewards. It’s a tool built by women for women that lets you earn cash rewards when you shop that are paid into your superannuation; at no extra cost or effort from you.
Cash rewards from Super Rewards retailing partners – groceries, shoes, pet food and more– are contributed to your super every time you shop. Seamlessly. Effortlessly. Beautifully.
So sign up now to be notified when Super Rewards is live. Get one step closer to reaching your super goals and don’t forget to share this fantastic tool with your friends!
Disclaimer:The information on this website is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any financial product.