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With more money in their bank accounts, women may feel more confident about their financial situations.
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Despite having a longer life expectancy, women make less money than men. According to the National Partnership for Women and Families, on average, women employed in the United States lose a combined total of almost $1.6 trillion yearly due to the wage gap. With this in mind, it’s no surprise that women have less money in their bank accounts. However, women can thrive financially by taking a few key steps. Here are a few ways for women to boost their bank account balances.
1. Pay yourself first
With today’s high living costs, it can feel impossible to save. Women can boost their bank account balances by making saving a priority. It’s okay to start small; every bit of money saved adds up and makes a difference. For example, if you commit to saving even just $25 each week, you’ll have $1,300 at the end of the year. That’s much better than having saved $0.
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The key to making saving a priority is to pay yourself first. Before you spend your next paycheck, save a small portion of it. To save time, you can set up automatic transfers through your bank. Doing this ensures that money is transferred from your checking account to your savings account regularly, so there’s no forgetting to make saving a priority.
2. Monitor your spending and follow a budget
If you’re not cautious, it’s easy to overspend, and for many people, this can lead to credit card debt. Monitoring your spending can help you learn where your money is going and see what changes you need to make. Using budgeting apps is an excellent way to set and track your budgeting progress. By cutting out unnecessary spending, you could boost your bank account balance.
3. Open a high-yield savings account
Make sure you have a savings account. Most checking accounts don’t pay interest, so there is little benefit to keeping extra savings there. However, you can earn interest with a high-yield savings account. This is an easy way to boost your account balance with minimal effort. Review our list of the best high-yield savings accounts to learn more.
4. Pay attention to interest rates
Interest rates have been climbing. While that’s bad news if you need an auto loan or mortgage, it’s good news for interest-earning bank accounts. Many banks continue to increase the annual percentage yields (APYs) for these accounts. For example, some online-only savings accounts are currently paying 3% to 4%. Switching to a bank that offers higher interest rates could help you significantly boost your bank account balance.
5. Increase your income
Boosting your bank account balance can be challenging when you don’t have a lot of extra money coming in. But it can be easier if you boost your income. Here are a few ways women can increase their income:
Work a side hustleGet a part-time jobNegotiate a raiseApply for a better-paying job
Knowledge is power — so don’t be afraid to talk about pay. Through these discussions, you may learn that you’re being underpaid for your work. This knowledge could help you set new income goals and better advocate for yourself and other women in your life.
Take charge of your finances
Women are financially disadvantaged, and it’s up to us to change the narrative. You’re not alone if you’re a woman looking to improve her financial health. The good news is it’s not too late to learn more and change your daily spending and saving habits to feel more confident about your personal finance situation.
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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
