admin The rising economic power of women is one of the most notable paradigms shifts in today’s modern climate. More women contribute to wealth in many countries, including the U.S. and Canada. However, a gender gap remains between the pay of a man and a woman in some industries, increasing the risk of poverty for many women. According to the Canadian Women’s Foundation, “women and gender-diverse people face high risks of poverty due to systemic barriers to work and the realities of low-paying, precarious jobs.”
The barriers women face does not prevent them from gaining financial independence. Women are continuously expanding their skillsets and knowledge, allowing them to make more informed financial decisions. Learn how to gain financial independence and make smart money decisions this year.
Create a Realistic Budget
Creating a realistic budget is one of the most critical factors contributing to financial independence. When you know how much you are spending, it is easier for you to gain control of your expenses. However, creating a budget comes with its set of challenges.
The key to creating an effective budget is considering the last year’s budget and anticipating potential expenses and income for the new year. This involves being realistic about your disposable income and looking for ways to cut expenses. For example, you can reduce your expenses by unsubscribing from services you don’t use, switching insurance companies after shopping around, and leveraging discounts and coupons when shopping. Many Canadian grocery stores send out coupons with flyers and offer discounts through loyalty programs.
Negotiate for Reasonable Pay
One of the most significant barriers to financial independence for women is the salary gap. Although you cannot solve this significant global problem instantly, you can negotiate for reasonable pay based on your qualifications, skills, and average pay for your position. Research has found that 20 percent of women never negotiate their pay. A woman who does not negotiate her starting salary upon graduation may forgo an average of USD 7,000 in the first year, which equals over CAD 9,000. Some women avoid negotiating pay as it feels like a chore and due to fear of being disliked.
Although the task may seem challenging, it’s important to negotiate for better pay to achieve financial freedom. Take the time to research the average pay for your role and discuss your expectations with the employer. You can do this when interviewing for a new role or when asking for a promotion at your current workplace.
Tap Into Investments
Investments offer an additional source of income while allowing you to combat inflation and grow your savings. Although many women know the benefits of investing, some may avoid it due to their doubt about investing successfully. However, research can remove this barrier and allow you to make informed investment decisions. This involves finding the right investment strategy based on your level of risk and short and long-term goals.
If you have doubts about investing but want to test the waters without touching your savings, consider taking a short-term loan to access fast cash. Reach out to a reputable online lender that offers loans with flexible terms. Some platforms offer payday loans in BC and other provinces in Canada to help borrowers get quick access to cash when needed. The simple application process of an online loan eliminates the intimidation factor and helps women quickly gain access to cash.
Navigating financial challenges as a woman can sometimes seem challenging, but many tools and resources are available today to help your journey to financial independence. Leverage the tools and resources available to gain control of your finances this year.
