Empowering women in 2024

Empowering Women in 2024: Strategies for Financial Fitness and Security

Insights from Karen Eley, Certified Money Coach and Wealth Coach at NobleOak

As we settle into the new year, the financial landscape brings forth both challenges and opportunities. Many Australians are feeling the impact of increased living costs and interest rates, underscoring the importance of financial resilience.

In a recent Life Insurance Pulse Report* conducted by NobleOak with 1,000 Australian participants, 41% of respondents expressed concerns about their financial situation, with 35% feeling less than fully in control of their personal finances. Interestingly females are less likely to feel in full control of their finances than males (38% compared to 31%) which correlates with recent findings*, reflecting broader gender disparities in financial literacy.

In this article, we explore specific challenges women encounter in achieving financial literacy and security. Certified Money Coach and Wealth Coach, Karen Eley, shares valuable tips to help women cultivate a financially fit mindset in 2024. From addressing the gender pay gap to navigating career interruptions and understanding longer life expectancy, these insights aim to empower women to make informed financial decisions.

We’ve all heard of the gender pay gap, but what is just as problematic is a ‘confidence gap’.  Typically, women don’t have as much confidence managing money as men do.  Women also need to feel 110% certain or knowledgeable before acting, compared with men, who are often more comfortable taking action (or higher risks).

Tip 1:  Increase your financial knowledge.  Finance doesn’t have to be boring or daunting.  There are many reputable financial educators in Australia that can assist you in your knowledge building – whether it be via books, newsletter subscriptions, blogs or podcasts. Look for those in the business of financial education, not those trying to sell you something.  Superannuation funds can also provide a valuable resource when it comes to learning about investing and long-term retirement planning.

Tip 2:  Confidence comes through action.  Taking those first few small, but significant, steps to manage your money.  This may involve logging on to your super account and learning how its invested, setting up a share broking account, researching exchange-traded funds (ETFs), downloading a budgeting tool, analysing your current spending, reviewing your insurance needs and what cover you currently have, and setting financial goals for 2024.

Tip 3: Face your financial fears. We all have them.  Take time to reflect and take stock of yours.  As humans we tend to catastrophise our fears in our head.  Get your financial fears out on paper and look at them from a different perspective.  Share them with a trusted friend and brainstorm alternative outcomes and strategies to put in place to mitigate the risk of them eventuating.  We should be focused more on what we want financially rather than focusing on and putting energy into what we don’t want.  I highly encourage women to speak regularly and openly about the topic of money and finances, that’s how we learn and grow.  Seek out someone in your life or workplace or a reputable online community who you can talk money with.

Navigating financial goals can be akin to a fitness journey, requiring commitment, regular effort, and sometimes, guidance. With the right strategies and a step-by-step approach, women can strengthen their financial fitness and secure a stable financial future for themselves and their families.

Karen Eley is a former financial adviser and Certified Money Coach. She combines her financial planning experience with insights from behavioural economics and psychology to help clients uncover the root causes of their financial challenges, increase financial literacy and education and support them develop healthier relationships with money.

*Research conducted on behalf of NobleOak by The Market Intelligence Co, December 2023 with over 1,000 Australian citizens or residents.

The information contained in this document is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before making a decision to purchase or continue with a product you should read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG) found at nobleoak.com.au and consider this information having regards to your own objectives, financial situation and needs. If you are considering replacing an existing life insurance policy you should consider your circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed.