01 Aug 2023

The 2025 checklist for women's financial wellness

There is a growing consensus on the significant socioeconomic impact of women's financial empowerment. Several studies have explored the factors contributing to women's financial literacy and independence. About 94%⁽¹⁾ of women express readiness to take charge of their finances. The natural, less-answered question: How can one get started?

Following is a comprehensive checklist to determine your financial wellness.

Financial goals

Did you know that 43% of individuals with a financial plan save 50% more each month? Financial stability begins with the outlining of your goals. Whether you want to go on a short trip or decide to purchase your dream home in the long run, setting clear financial goals is the first order of business.

Start by conducting a financial health checkup. If you are a professional with a competitive salary, your goals may vary considerably from those of a homemaker—the objective is to set realistic goals. By delving into the reasons (WHY), defining what you seek (WHAT), establishing a timeline (WHEN), and strategizing how to accomplish it (HOW), you can reach your financial goals.

Expense tracking

Just like her routine exercise is essential for good health, day-to-day expense tracking is integral to achieving financial freedom. Around 40%⁽²⁾ of the women still struggle with creating and setting a budget. Whether you're a homemaker or a working professional, tracking your expenses helps determine areas to cut corners and enhance savings.

By monitoring your finances closely over time, you can reduce debt, prioritize essential expenses, and efficiently cut out unnecessary costs, freeing up resources for your long-term financial goals. Two effective methods to begin your expense tracking journey are to create a dedicated spending journal or try a budgeting app.

Creditworthiness

In the UAE, a score between 300 to 619 is typically considered "poor", while 620 to 679 is interpreted as "fair". A credit score of 730 and above is deemed excellent. Women can build good creditworthiness by taking small personal loans and repaying them on time. Likewise, there are numerous legitimate ways to increase the credit score. Reach out to financial advisors and create a viable plan to amplify your creditworthiness.

Insurance against unforeseen risks

MENA countries have invested heavily in the health and insurance sectors in the last few years. Accordingly, about 56% of women in the Middle East are confident about their healthcare affordability due to insurance (Willis Towers Watson report). To help women find financial freedom, raising awareness of different insurance products is crucial. The necessity of insurance must be contextualized with women's unique circumstances, including but not limited to a tendency to live longer than men, on average.

Retirement planning

Women hoping to sustain their lifestyles even after leaving the workforce must plan financially for the same. To craft an effective retirement plan, consider utilizing a nest-egg calculator. This powerful tool estimates the ideal retirement age with sufficient funds to decumulate and maintain the lifestyle.

Here are general steps to secure your retirement:

Maximize monthly salary contributions to retirement savings from age 40.
Create an Individual Retirement Account (IRA) and put aside money regularly.
Seek expert guidance for customized retirement strategies.

Financial decisions should be made with careful consideration of your future needs, priorities, and goals. It is essential to understand your current financial situation and risk tolerance before making any long-term investment decisions. If you are unsure what to do, seek guidance from a financial advisor. Remember — consistency and patience are key to financial success. Don't get discouraged if you fail to see instant results. Just keep making progress, and you will eventually reach your goals.

The 2025 checklist for women's financial wellness

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