Five Simple Steps to Boost Your Financial Confidence

Are you confident about your financial future?  If your answer is “no,” you’re not alone. A 2008 study by Prudential, “Financial Experience and Behaviors Among Women,” found that women generally tend to have clear financial priorities but low confidence in their ability to achieve them. Read complete study.

Many women push long-term financial planning to the back burner because they are overwhelmed by short-term priorities, such as caring for children or aging parents, working outside the home, and community commitments. Read the real-life stories of women and their financial challenges.

One of the best moves you can make right now is to become familiar with basic financial planning. No matter where you are in life, today is the day to begin prioritizing your goals and increasing your financial confidence:

1. Know Where You Stand and Where You Want to Go.
Invest in some user-friendly financial planning software and start reviewing your records. Know where your money is invested and how much debt and insurance you have. Next, make a list of areas of interest that you’d like to learn more about, such as annuities, Stocks and bonds, insurance, and IRAs. Have this information handy when you meet with a financial planner.

2. Meet with a Financial Planner.
What you don’t know can hurt you, so seek out a financial professional. Ask friends and colleagues for referrals and look for someone who you feel comfortable with and who specializes in financial planning for women.

3. Insure Your Future Security.
Carefully review your life and disability insurance needs, especially if you are the primary breadwinner. Life insurance can help protect a family from the devastating loss of a wage earner.  Be sure to ask your financial planner if long-term care insurance is right for you.

4. Max Out Your 401(k).
You’ve heard this advice before. If you have yet to heed it, start now. It really is one of the easiest, smartest things you can do to help prepare for retirement.

5. Make a Will or Estate Plan.
Many women make the mistake of not creating a will, leaving loved ones to deal with the hassle and expense of probate court. A will leaves no doubt about what should be done in the event of death and helps protect your assets for future generations. 

Our study indicated that only one in five women feels very well prepared to make wise financial decisions. Taking action now can place you in the financially confident minority and help put you on the road to retirement security.