Several recent reports have discovered that the number of female breadwinners is growing. Women are largely unprepared to manage a large payout from a life insurance policy or inheritance, however. The results of these reports can motivate and empower you and the women you love to take steps toward financial confidence.
Female Breadwinners are on the Rise
According to the Center for American Progress, up to 42 percent of moms are the sole or primary breadwinner in their home, meaning they earn at least half of the family’s income. An additional 22 percent of moms are co-breadwinners earning between 25 and 49 percent of the family’s total income.
Female Breadwinners Feel Financially Unprepared
Despite their increased earnings, many women don’t feel prepared to handle an inheritance or other large financial gift reports RBC Wealth Management. With this money, a family could repay debt, save for retirement or contribute to a child’s college tuition, but they may squander it if they don’t have a sound financial plan.
How to Find an Inheritance
Based on the findings of these reports, women are encouraged to take steps to boost their financial confidence. They can handle a life insurance payment or other inheritance wisely with help.
Find a financial advisor.
If you don’t already work with a trusted financial advisor, make time to find one. He or she will be:
Interview several candidates before you choose one. This way, you can compare the commissions, ensure you’re on the same page and know that the person you hire will put your needs first.
Wait one year.
It’s smart to take your time and make thoughtful financial decisions. The money you receive can provide you and your family with substantial benefits for years to come if you plan wisely.
Prioritize your current and future needs.
You may consider buying a luxury car or dream vacation with your inheritance, but prioritize your spending. Balance current needs with future needs so you’re not part of the 70 percent of people who receive a windfall and are broke within a few years.
With the help of your financial advisor, take action to spend your inheritance wisely. Ask for small, actionable steps that assist you in achieving your goals. When you have a specific and detailed plan that’s broken into small pieces, you feel less overwhelmed and more confident about managing your money.
Female breadwinners may be unprepared to handle a life insurance payment or other inheritance, but they can learn how to manage money successfully. Ask for help and take charge of your finances today.