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January isn’t over yet so the new year’s resolution conversation still carries some weight. More important than resolutions that are likely to fall by the wayside as 2024 moves along are goals that clients are more likely to follow through on.
As advisors know, financial goal-setting isn’t linear across entire client bases. Financial objectives differ on the basis of age, family situations, income and yes, gender. That is to say advisors should be aware of the financial accomplishments female clients want to notch this year.
That’s critical because a case can be made that’s women can derive more benefit from working with advisors. After all, scores of data points, research, studies and surveys confirm the following: Women are better savers and more prudent investors than men. Plus, they’re eager to attain more financial education and high-level advice.
Fortunately for advisors, the top 2024 financial goals for many women are neither demanding nor exotic and can be accomplished with enhanced engagement and elevated strategies.
Save More, Slash Debt
Two of the primary objectives women have for 2024 are bolstering their savings while reducing debt – two things that go hand-in-hand. With credit card debt at all-time highs, a record level of car payments exceeding $1,000 per month and interest rates still elevated, it’s logical that all clients regardless of gender would prioritize reducing monthly obligations.
When it comes to debt reduction, advisors can assist clients with one of two approaches. Some experts believe it’s more effective to eliminate the highest interest rate obligations first while others see more value in getting the smallest balances out of the way to start.
As for boosting savings, that can take on many forms. Depending on the client, that improved savings can mean setting aside more cash for emergencies, shoring up retirement savings, investing more in the market or all of the above.
“Once you’ve developed a budget to figure out how much you have left over each month, you can set up automatic transfers from your checking account to savings or investment accounts. If you are building an emergency fund or saving for a short-term goal, set transfers to a savings account,” reports GoBankingRates.
Making More Money
It goes without saying that 99%, if not 100% of clients want to make more money. Obviously, advisors aren’t career counselors, but there are some simple points that are applicable to clients, including women that are in the workforce.
Stay away from urging a client to find a new job because the current environment might not be conducive to that and that advice could work against the advisor. Fortunately, there are safer ideas.
“When you’re researching salaries and job descriptions, make notes on what a competitive salary is based on the job description, the region, the level of expertise required and the size of the company,” adds GoBankingRates. “In addition to negotiating for higher pay, another way to increase your earning potential is to gain new skills.”