Many women risk being too financially dependent on others. Getting a job and earning money is not the solution to this risk. Women need to be clear with their partners as to who makes the financial decisions. They also have to play an active role in taking financial decisions. She must know what happens to the money she contributes to the household and how the retirement money is being invested. She should track the money allocated to savings, debt payment, and the net worth of her movable and immovable assets. This knowledge can be very useful especially when something unforeseen happens. Knowing where you money is or if you have enough money solves financial problems faster and saves both you and your partner a lot of needless stress and frustration. Being financially independent to a degree also helps you attain financial independence, so it is important for every woman to find out how much she is financially worth, as well as the net worth of her assets and liabilities.
When this question was asked to many women on a survey, the answer usually was “my husband takes care of it” or “I am not sure.” The truth is majority of them do not know how much percentage of the assets they own. They should make it their priority to find out whether the asset allocation is at least equal to the money they contribute. Sadly, most women do not find out about this until this risk hits them hard in various forms such as divorce, hospital bills, the death of the spouse or some unforeseen event. The asset imbalance can be easily identified and corrected by calculating how much you earn versus your expenditures and by identifying what happens to the surplus or deficit.
In case you have to go through a divorce, or are abandoned by your spouse, the above-mentioned point will become a huge factor in this situation. This scenario becomes more complex if there are any children in the union. This worst-case scenario has to be played out in the minds every woman. Be aware that number of divorces filed keeps increasing every year in America. Being financially independent and knowing your asset allocation will ease the pain of going through a divorce and will help you rightfully retain your money. It will also help you get you back on your feet quickly and can tide you over with your children for a while. Knowing your financial worth may not help you with the emotional pain of going through a divorce, but it will surely ease the financial pain. It is suggested that you must have ready access to at least 5,000 to 10,000 dollars before you decide to file for a separation.
You must also understand your insurance policies and investments. This will make more sense on the stages of retirement and old age, or when you are unable to work for extended period due to illness or accident, or in case of a divorce. A large number of American women face this risk today. Instead of having money sitting in the bank, why not let it work for you and earn more money? There are many safe investment options out there. In addition, women have to make sure that they have enough health insurance in case of accidents or children’s unforeseen expenses.
In conclusion, these scenarios are not meant to scare you and but to make women all over consider their options and use them wisely so that the transition during the tough times is as manageable as possible.