Women: Plan Your Financial Future Alongside Your Health

Physical and financial health are more intertwined than you might think. For women, both are crucial for our well-being and empowerment..

It’s no secret that a healthy lifestyle can help extend life expectancy and make us feel vibrant. But it requires discipline, effort, and even sacrifice, which is why some people don’t reach their goal. This same concept of physical health can be applied to a woman’s financial health: there are steps to follow to achieve different objectives and recognize symptoms of “illness.”

Let’s Talk About Financial Health

In my opinion, it all starts with how we manage finances in everyday life. Financial health is achieved when economic matters are handled properly to detect opportunities and face unexpected events. And it’s important to know that the stress generated by poor financial health can have physical and mental consequences, including:

• Loss of sleep
• Digestive problems
• Headaches and migraines
• Cardiac arrhythmia
• High blood pressure

What similarities are there between physical and financial health? Many.

• They affect overall well-being: Both significantly impact the quality of life. Poor physical health can lead to reduced productivity, and poor financial health can cause stress, anxiety, and limit opportunities.
• They require planning and monitoring: Physical health is monitored by visiting doctors regularly, and financial health requires constant budget review, monitoring expenses, checking credit reports, and consulting financial planning specialists. And both demands setting long-term goals.
• Risks must be managed: In physical health, we try to prevent injuries and diseases; in the economic aspect, we set goals like staying within a budget to improve financial well-being over time.
• Taking preventive measures is crucial: Just as regular exercise and balanced nutrition can prevent diseases, creating a budget and saving could avoid financial difficulties.
• They benefit from specialized help: Seeking professional support when needed can make a difference. If you seek medical help for health issues, consult a financial planner when you need guidance.

There is a Lack of Equality 

According to the survey The Gender Gap in Financial Health, conducted by Financial Health Network in July 2022 among women aged 18-64, there is a gender inequality in terms of financial health. Here are some of the most revealing findings:

• Only 1 in 5 women (i.e., 20%) are financially healthy. This is 5% below men.
• They are more financially vulnerable than men (24% versus 17%).
• Women obtain less encouraging results in financial health indicators such as savings, expenses, debt level, and planning.
• Married women tend to have better financial health than single women (24% versus 13%).

Despite these results, it is possible to emphasize that there are strategies that promote women’s financial health, such as:

• Education about finances: It is essential that they learn financial topics through seminars, reading, and programs to develop knowledge and skills for making informed financial decisions.
• Saving and investing: Establish an emergency fund for short-term goals (3-6 months of anticipated expenses) and evaluate long-term investments³ for retirement. Women have a higher life expectancy, so when planning their finances and establishing investment strategies for the future, they need to be proactive.
• Financial independence: Set goals aligned with aspirations to avoid dependence.
• Continuous learning and self-motivation: Stay informed about the current market situation and financial trends to face obstacles that may affect goal achievement.
• Stress management: Techniques for managing anxiety should not be limited to relaxation techniques and time management; finances must be planned to handle unexpected events that increase stress levels.
• Insurance and estate planning: Protect assets and ensure financial stability through insurance coverage (health plans, life and disability insurance) and transfer assets according to your priorities and desires.

The Financial Planner: A Woman’s Ally 

A good financial plan can help achieve goals and foster the coveted well-being of women’s finances. Financial planners are like doctors: they diagnose and give the necessary recommendations to improve various aspects.

These specialists can help you take preventive measures on how to establish a budget, have strategies to reduce risk, and periodically evaluate if adjustments should be made.

Taking care of your physical and financial health requires significant effort, discipline, and long-term planning. And the financial plan plays a crucial role in achieving women’s well-being in both areas: it takes the X-ray to create an action plan that achieves our economic stability and peace of mind.

At Popular One¹, our team of professionals is ready to assist you both during the development of your financial plan² and in its implementation. Consulting your trusted financial team is essential for the success of each strategy. Contact your private banker today; call us at 787-281-7272 or write to popularone@popular.com.