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4 Ways You Can Manage Your Financial Fitness

by Nellie

This is a sponsored post for SheSpeaks/Prudential.

I am all about physical fitness, but what about financial fitness?! Are you financially fit?

Since quitting my very stable 9-5 last summer to become an entrepreneur, I have learned quite a few things when it comes to budgeting. When I was working at a corporate job, I was making a decent amount of money, more than I even realized. As an entrepreneur, cash flow is super unpredictable, it can be incredible one month and pennies the next.

I quickly had to adjust and make sure that I was ready for whatever came my way. It was about time to become financially fit, but there were so many other parts of the financial picture I had to make sure that I was aware of: my 401K, life insurance and so much more.

When it comes to women and money, we are fantastic at budgeting but often don’t pay as close attention to our retirement funds and social security.

Did you know?

On average women’s have 30% lower retirement balances than men1

44% of women have no life insurance. Even among the ones that do own life insurance, most are underinsured2

Prudential is making women aware of the financial challenges women face with a great campaign called Own My Future. They believe that women should AND can take control of their finances.  The goal of this program is to help raise awareness and start a dialogue about money.

There are four major gaps that women have to grapple with when it comes to their finances:

1) Wage and Income Gap:

The average woman working full-time earns 79% of the income earned by her male counterpart.3 This is because of many issues–we are a lot less likely to ASK for equal pay, plus there is time out of the workforce, and differences in pay.

The wage gap not only impacts women’s 401K balances over their lifetime but it also impacts their social security payments. Women’s social security benefits are 27% lower than that of their male counterparts.4 (I had no idea!)

2) Investment Gap:

Women don’t invest to the same degree as men.5 Women’s discomfort with investing comes at a high cost for them: They are apt to delay investing, invest more in lower risk, lower return investments and are more likely to run out of money in retirement.

3) Women Are Living Longer and Living Alone:

Women outlive men by an average of 5-6 years.6 We need to be prepared for our later years likely with one income!

4) Time Gap:

On average, women in the U.S. spend 28 hours per week on household chores – 65 percent more than the average for men.7 That is uncompensated work and it does not figure into women’s financial planning. We work hard around the house but unfortunately, it is not paid work, and often doesn’t factor in to women’s financial planning.

Hopefully knowing all of this information will help women be more aware of important financial decisions and help us to make better decisions going forward!

Knowing these four facts really made me take a strong look at my own personal finances. I have always wanted to invest further than my 401k, HSA and the boys’ 529 savings account for college. I’m going to look into researching and purchasing stock especially since it is way more accessible with mobile apps! I also need to split more of the household duties with the kids and my husband—This will give me more time to grow my brand and business!

Click here to learn more and find a Prudential advisor who can help you own your future.

How financially fit are you?

1. Prudential Retirement analysis reflecting defined contribution plan balances of Prudential record-kept plans as of December 31, 2015
2. LIMRA study, Life Insurance Ownership in Focus, U.S. Person-Level Trends: 2016
3. U.S. Census Bureau, Historical Income Tables Table P-40: Women’s Earnings as a Percentage of Men’s Earnings by Race and Hispanic Origin, 2016
4. Social Security Administration, Fast Facts and Figures About Social Security, 2016
5. http://fortune.com/2016/05/11/sallie-krawcheck-ellevest-launch;
6. Prudential Retirement analysis; National Center for Health Statistics, Health, United States, 2015: With Special Feature on Racial and Ethnic Health Disparities. Hyattsville, MD. 2016
7. Organisation for Economic Cooperation and Development, October 2016, http://stats.oecd.org/index.aspx?queryid=54757

Sharing important ways from @Prudential how women can stay financially fit! #OwnMyFuture #ad Click to Tweet

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