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If you are widowed, divorced or a single woman, there are financial considerations to address. According to the Economic Policy Institute, women are more likely than men to experience poverty, almost a quarter of unmarried mothers live below the poverty line and nearly 30% of women over the age of 55 live in poverty.
On average, women earn 20% less than men. Women also leave the workforce to have children, which affects their earnings and savings potential. Single mothers who return to the workforce after having children earn an average of 20% less than single women who stay in the workforce.
How should women prepare for and strengthen their financial future? Meet with a qualified professional to discuss your financial goals and needs.
At Atlas Wealth Strategies, we believe using a financial planner is important after a divorce, becoming a widow, or a major life event. We can help women with financial advice for investing, budgeting, planning for retirement, or long-term care.
After a divorce or death of a spouse, women face the daunting task of reevaluating their finances. Employment income, Social Security benefits, pension income, and debts such as a mortgage or credit card debts could all be affected. Many women feel they can't afford to retire, but financial experts advise divorced women and widows to investigate their retirement options.
The first step to your financial recovery after a divorce or death of a spouse is to set goals. If you're ready for a fresh start, determine a budget and stick to it, even if it's tight at first. After that, focus on paying off your debts.
Next, save enough money for an emergency fund. You can start an emergency fund with as little as $500 and add to it over time.
Finally, focus on long-term goals such as college or retirement. A financial plan can get you on the path to meeting your goals. It can also help you monitor your progress.
This is probably one of the most frequently asked questions by single women. You need to understand that the difference between being financially successful and being wealthy is vast.
First, define what financial success means to you. Maybe it's being able to take a vacation abroad once a year, or perhaps it's being able to save for your children's education. Next, set money-related goals.
A financial planner can help you develop your personal financial plan and support it with investment opportunities, portfolio diversification, insurance, long-term care and estate planning. A financial plan includes paying off debts and working towards financial stability (or growth for some). With a financial plan, yes, a single woman can work towards being financially successful.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Contrary to what you might think, you don't need to be a millionaire or a CEO of a major company to need the services of a financial planner. In fact, many people who work with planners have modest incomes and don't have complicated financial situations.
The earlier you get started, the sooner you can make wise financial decisions based on your goals. Financial planning begins with getting your finances in order. And the sooner you get started, the sooner you may be able to reach your financial goals. Along the way, you'll acquire the knowledge, skills, and experience that will help you work to pursue your long-term goals.
Divorce, becoming a widow, or being a single woman can involve navigating difficult choices but you don't have to do this alone.