Financial Mistakes For Women To Avoid
What are the financial mistakes that women need to avoid? By viewer request, we discuss the potential mistakes I've seen some female clients have made over the years - and how to protect from them.
Patrick: Ladies, what financial mistakes should you be watching out for? Find out coming up.
Hey there, folks. I'm Patrick King with Transformative Financial. Here on this channel, we help people make money, keep money and feel more financially secure along the way. If that sounds like something that you are interested in, please contact me. My email is firstname.lastname@example.org. My contact information is below in the show notes. Contact me. I'd love to have a conversation to see if it's a good fit.
On today's episode, by special request, what financial issues should you ladies out there be watching out for? What are the financial mistakes that you should be on guard for?
This was a special request and I was little reluctant at first to do this episode for fear of “mansplaining” all of this to you, but instead what I'll do is I'll share my experiences that I've had along the way and seeing where some of my female clients have had some issues both mentally and behaviorally around their money.
First and foremost, the thing that's concerned me about my female clients throughout the years is, just be involved. Be involved, especially if you're in a couple. There's a tendency for a lot of ladies to defer to their husbands or partners in a lot of cases. Quite frequently what I've heard when I've confronted them about it, "Where have you been? Why don't you show up to the beatings?" is, "Hey, I'm not good with numbers. I don't like all of this financial stuff." Okay. I get that. Sometimes it could be a little dry. I'm doing my best to take some of the more boring elements out of the details and talk on a more a high-level basis to clients. Being a recovering engineer, that's something I have to watch out for. If you're not involved there are different ways that this can backfire on you. I've seen each of these happen.
First off and this is something, okay, it's tough to think about, but let's say your husband or your significant other passes away and they've been handling all the financial details all this time, you're going to be lost. Doesn't mean that you're going to not be okay, but certainly those things that you'd decided that you didn't want to be involved in, they're going to be thrust onto your plate and they're going to be very important to you. That's number one.
Of course number two, and I've seen this too, unfortunately. Let's say your husband or significant other decides that they want a divorce or want to separate. The financial issues become real important, real quick. Again, reason number two is to stay involved.
Finally, number three and this is the one that bothers me the most is, let's say the husband is involved in the financial meetings, plotting the financial course. The spouse, the woman in many cases, again, doesn't want to be involved because of all the details and they find it boring, but their partner is running the finances into the ground. I've been a lot of meetings where over and over I'm like, "You've got to stop spending money. You've got to cut back. You're going to need to sell that second home." I wondered because the spouse wasn't there. Do they even know? Are they getting this message? This husband, does he walk out of my office and go home and tell his wife that everything's okay when in fact it is not okay? That is something that really, really bothers me, and why I started insisting that spouses be involved in some sort of fashion along the way.
Now again, these can be stereotypical. I've seen the roles reversed in a lot of cases. I want to be sensitive to that, but again this goes back to my experience with a lot of my female clients. The number one thing is be involved. That applies to everything. That's a human condition not just a female condition.
Number two, and again this is not a gender thing and I've seen male and female parents do this, but enabling children who are financially dependent on them to drain their financial resources. I've mentioned something about this in a prior episode, “What Happens When You Run Out of Money in Retirement?” In a lot of cases, I've seen where parents of adult children keep enabling those children to live off of them when their portfolios may not even sustain their own retirement. That's a tough conversation to have. Again, that's coming up that may not be particularly a female problem, but I've seen that with clients who were female in the past.
Number three, again, not necessarily a female specific thing, I've seen it with male clients as well, but putting off a decision. Sometimes, if it's all too new, if there's a lot of information coming out at you. I'm certainly guilty of this too. You can have a tendency to say, "I'm overwhelmed. Let me just process all of this and not make a decision," and then never make a decision, right? Sometimes it's better to make a decision, move on and course correct later than to never decide in the first place.
All right. Thanks. I hope I didn't piss you off too much. It was a little of an uncomfortable episode for me because again I've seen the gamut of behavior across both sexes. It’s kind of a spectrum of risk tolerance and involvement and all of that too. I certainly did want to honor my viewer who did ask this question. Again, these could be both male and female traits that I would certainly caution clients to watch out for over the course of their saving for retirement and then living off their retirement savings too.
Again, I'm Patrick King with Transformative Financial. Thank you for watching. If you enjoyed this, click “like”. Of course, subscribe if you want more of this content. Until next time, cheers.
[00:07:14] [END OF AUDIO]