Debt Relief Plans for Women to Ease Financial Distress

Dec 17

Debt Relief Plans for Women to Ease Financial Distress

While there is no doubt that the basics of good and progressive financial planning does not depend upon the gender of the person, there is no gainsaying that there can be some lifestyle issues and economic concerns that are unique to the fairer sex. According to many socio-economic studies, women tend to earn less than their male counterparts but generally outlive them.

Not only are most household budgets under their control but also they are a source of financial counseling for adult children. While they can take exceedingly good care of their families, including sick and aged parents, they sometimes fail to undertake proper financial planning for them and face crisis.

With more and more women choosing lifestyles that are independent of their partners, it becomes imperative for them to remain financially solvent and able to earn adequately to subsist, and plan for their futures. This skill becomes all the more vital in case they suddenly find themselves alone following a death or a divorce but need to keep on providing for expenses related to children, education, medical care, insurance, rent, utilities, transport, and a thousand other things essential for daily life. Here’s how women can prepare themselves for a secure financial future.

Ascertain and Rank Objectives

While men generally tend to obsess about increasing their net worth through stock market investments, women tend to be typically more concerned about the end use of the money, such as education for the kids, care for aging parents, and retirement. Since fulfilling these can prove to be extremely challenging for most women, it is necessary for them to chalk out financial goals that are realistic.

These could include, among others, establishing a small business, acquiring a house, purchasing a car, travelling or setting up a college education fund for the children’s education or even their marriages.

Formulate a Plan

The preparation of financial plans needs to begin with estimating current income and expenses as well as making a projection of the future so that it is possible to ascertain the amount of savings that may be possible. It is also necessary to chart out the expenses that are likely to be incurred on the identified goals so that the gap, if any can be met with some sound investment strategies. It is also a good idea to estimate the risk appetite when making a list of the investment options available as this is essential to decide on whether the returns would be adequate to fulfill the stated financial goals.

Since plans will perhaps not always go as intended, it is also worthwhile to put in place a few contingency plans, including purchase of insurance cover to tide over illness, job lay-offs, or even death. A conservative investment portfolio will almost always have a large component of debt in addition to equity for optimum balance. Some people find it very difficult to manage debt, especially if the number of sources are numerous, and may require special services. To know more about debt relief visit our website.

Locating a Financial Partner That’s Reliable

Among the most critical steps in planning out your financial future is to locate a financial counselor who’s savvy, efficient and able to factor in your special requirements to formulate a financial plan that is customized and integrated. It is necessary for women to be extremely circumspect and cautious in this matter as there are so many stories of counselors who have taken undue advantage of the trust of their clients.

While there is nothing to prove that ladies will prefer financial planners who are female, many women clients who are trying to survive after divorce or a partner’s death may find it easier to confide and trust in women advisors and financial planners, as they tend to understand them better and relate to their special circumstances.

Author bio: Janet Williams is a financial counselor with more than a decade of experience of managing private individual investment portfolios. Her expertise includes debt relief and consolidation. To know more about debt relief visit our website.