9 Financial Tips Every Woman Should Know to Protect Themselves

As a woman, it’s important to take steps to protect yourself in many different ways. One of the most essential ways to do this is by being informed and intentional about money. 

“Money is one of the major tools we use to get the life we want,” says financial educator and coach Andrea Belzer. “Just as you learn to drive your car or how to effectively use your smartphone, you need to learn how to use your money.”

Many women go through life without ever getting the financial education, support, and resources they need to effectively manage their money and build wealth. (Why is this something we don’t learn in school?!) So, if you want to take your finances to the next level, you may have to take the process into your own hands.

There is a wealth of helpful financial advice and insights for women that can help you gain control of your finances—including right here in this article. Check out these nine financial tips every woman should know to protect themselves:

1. Make a plan

You can’t take control of your finances if you don’t know what you’re trying to take control of—which is why it’s important to make a plan.

When creating your financial plan or budget, it’s important to “understand your income, expenses, and financial objectives,” says Bill Ryze, a Tennessee-based certified Chartered Financial Consultant and board advisor at financial services search platform Fiona. “Consider short-term and long-term objectives, such as retirement savings, emergencies, and major life events.”

Having your financial plan down on paper can help you identify where you’re thriving, what areas need your attention, and help you make money-related decisions that align with your income and your long-term goals.

2. Start saving for retirement—now

One of the best financial tips you’ll ever receive, no matter what age you are, is to add retirement savings to your budget—starting now. “The earlier you start saving for retirement, the bigger the corpus,” Ryze says.

As a woman, you want to ensure that when it comes time to retire, you have the savings you need to support all of your needs; otherwise, it could put you in a precarious situation.

“The one that causes problems that you don't even think about is end-of-lifetime stability,” Belzer says. “Women tend to live longer and have more expenses—including more medical expenses towards the end of life. When you don't know what to do with money today, you are putting your future self in danger of not having enough—making your ‘golden’ years not so golden.”

Read this next: 5 Ways You’re Saving for Retirement Wrong

If you work for a company that offers retirement plans, start contributing to them—particularly if your company offers a match (which means they will contribute the same amount you contribute up to a certain percentage of your salary, like 3%). 

“Take advantage of employer-sponsored plans like 401(k)s and IRAs,” Ryze says. If you’re self-employed, you can open your own retirement account, like an individual 401(k)—and make your contributions directly.

These retirement savings options allow you to save pre-tax money for retirement. Not only that, but these accounts offer compounding interest, meaning you earn interest not only on the principal but also on the accumulated interest. As a result, the money you invest today will become more valuable over time—“which can significantly boost your savings over time,” says Ruze.

It’s important to acknowledge that saving for retirement can be really difficult, particularly if money is tight at present. But if you have any wiggle room at all in your budget—even if it’s $20 per month—that can be a jumping off point to start your retirement savings. “It doesn't have to be a huge amount,” Belzer says.

3. Build a diversified investment portfolio

Investing is one of the most effective ways to build wealth. But it can also be risky; you don’t want to have all of your eggs in one basket, like a specific stock—and then lose all of those eggs if the stock were to ever crash.

Instead, “invest wisely in diversified portfolios,” Ryze says. “Understand different investment options, such as stocks, fixed deposits, bonds, mutual funds, gold, and real estate.” (Here's your complete guide to real estate investing for beginners—you’re welcome!)

The more diverse your investment portfolio, the less you’ll have to rely on any single investment—which can help protect you in the event that one of your investments goes south.

4. Educate yourself 

Financial education hasn’t always been a priority in the traditional public education system; many high schoolers—and even college students—graduate without ever taking a class on financial literacy.

If that’s you, consider taking that education into your own hands. “Make it a priority,” Belzer says. “Start by reading books or a financial magazine.”

If you feel some resistance to diving into all things finance, try to reframe it as just another new hobby or interest. “Don't be scared of learning about money,” Belzer says. “It is like any other subject that you want to learn, like a new language or learning guitar.”

And if it feels overwhelming? Remember—you don’t have to learn everything overnight. “Financial knowledge can be done slowly over time, just like investing,” she adds. “It doesn't have to be an intensive course to learn it all in one weekend.”

5. Develop a working knowledge of all things finance

As you’re educating yourself, you might find yourself drawn to financial topics that feel important or relevant to you, like budgeting or retirement planning. But it’s important to educate yourself on all aspects of finance—at least to the point that you have a working knowledge of each element.

“Everything from daily money management to investing, plus taxes, estate planning, insurance,” Belzer says. Why? Because while “you don't need to be an expert…you do need to know enough to have a conversation with a professional—and not get taken advantage of.” 

“For example, if you know nothing about investments, your advisor may sell you something risky that they tell you is conservative,” she says. “Riskier investments have a greater chance of loss, so you could lose more money than you anticipated, putting your future at risk.”

Or let’s say you’re looking to buy a new car. If you’re not knowledgeable on your credit and what kind of interest rate you’re eligible for, you could get locked into a loan with less-than-ideal terms—and lose thousands of dollars as a result.

The point is, the more you know about money, the less likely it is that someone will be able to financially take advantage of you—and the more protected you’ll be as a result.

6. Negotiate a higher compensation package…

Making more money offers a certain level of protection. For example, if you earn more, you can put more in your “rainy day fund”—which can help protect you if you ever lose your job or find yourself dealing with a large, unexpected financial obligation (like a medical bill).

One way to make more money is to negotiate for a higher salary and/or benefits package. This is important for everyone—but with the continuing gender wage gap, it’s especially important for women, who not only make less money than their male counterparts, but are also less likely to ask for raises.

“Negotiate your salary and benefits,” Ryze says. “Research industry standards and be bold to advocate for fair compensation.” (This is how you negotiate your salary the right way!)

Also keep in mind that negotiation isn’t just for when you’re hired for a new job. Make sure you’re “assessing your earning potential regularly and seeking new opportunities for growth,” Ryze says—and that includes within your existing organization. 

To help you get there, here's a step-by-step guide on how to ask for a raise, including expert advice.

7. …but also look for other ways to create income

Negotiating a higher salary is a great way to make more money. But if you lose your job, you also lose your compensation, which can put you in a rough financial spot.

That’s why, just like you want to diversify your investment portfolio, you also want to diversify your income streams. “Multiple income streams provide financial stability and flexibility,” Ryze says.

There are plenty of ways to make money outside of work. For example, you can “explore side hustle, freelance work, or passive income sources,” Ryze suggests.

Set up an Etsy shop. Start consulting. Create a digital product and promote it online. Do whatever you can to drive income from different places—which will not only help you bring in more money, but protect you in the event that one or more of those income sources dries up. (Here are 10 ideas to make passive income and earn more money.)

8. Avoid debt

Debt can put you in a tough situation—and that situation only gets tougher the more debt you accumulate. “This opens us up to being vulnerable to quick fix scams, damaging our finances even more,” Belzer says. 

Plus, if you have a ton of debt, you’re not able to save money, for retirement or otherwise. So, if you want to protect yourself and put yourself in a good financial position, one of your top priorities should be getting out of debt.

“Focus on paying off high-interest loans such as credit cards and student loans,” Ryze says. Once you’re done paying off your debts, funnel that money towards savings—and work to “live within your means.” Stick to a budget and avoid taking on any unnecessary debt. 

9. Talk to other women

Many people hesitate to talk about finances; it’s often seen as rude or invasive—but the secrecy is part of the reason that so many women struggle with financial management and growth.

An antidote for that is to talk about finances—and specifically, talk about finances with other women.

“Women teaming together to learn about money is very empowering,” Belzer says. “It creates a safe space to explore a topic that often feels overwhelming.”

For example, if you’re up for a promotion, you might talk to other women in similar positions to get negotiation tips. Or if you’re planning on investing, you might talk to other women about their strategies—and what has worked and not worked from them in the past.

Bottom line? Women supporting and empowering women is always a powerful thing—and it can be especially true when it comes to finances.