Empowering Women Financially: 4 Proven Strategies for Success

The financial landscape of the UAE is rapidly evolving, and women are at the forefront of this revolution. With an impressive 29% of ministerial positions, 50% of the Federal National Council, and nearly 50% of the Ministry of Foreign Affairs and International Co-operation’s employees, women are carving out their own destinies in the country's most important sectors. From government and military to arts, culture, and the economy, women are leading the way towards a brighter future.

Even in the groundbreaking Emirates Mars Mission and UAE Astronaut Programme, women played a pivotal role, comprising 34% and 70% of the teams, respectively. But with great power comes great responsibility, and managing finances wisely is crucial for financial independence. In this article, we'll explore practical steps, tools, and strategies to help women take control of their finances, overcome challenges, and build a solid foundation for a successful future.

Starting with the Basics - Budgeting

Budgeting is a skill that women have mastered over time, especially when it comes to managing their household finances. They are experts in making the tough decisions of balancing necessities and splurges while still managing to save. It's time to put that expertise to work and start budgeting your finances.

The 50-30-20 rule is a great starting point if you have a regular income. Allocate 50% of your income towards necessities and home expenses, 30% for self-care and leisure activities, and 20% for investments. 

Of course, as your priorities may differ, feel free to adjust accordingly - this rule is primarily a reference point to start. With some planning and determination, you can start building a strong financial foundation for yourself.  

Prioritise Your Retirement Goals

When it comes to retirement, it’s time to absolutely prioritise yourself. You should embrace your financial power by making the most of your company's retirement plan – contribute at least up to the company match, or even more if possible.

Planning for your retirement in your 20s is ideal. You can start by saving around 10-15% of your yearly income. If you start late, however, you should try to save a higher percentage. For instance, at 40, you should aim for 25-35% of your yearly salary. It may seem like a lot, but retirement can last long, especially for women. Financial experts suggest planning for a 90-plus year lifespan in retirement calculations, so ensure you're ready for the future.

Invest in Health and Life Insurance for a Secure Tomorrow

You should harness the power of your hard-earned money by making savvy investments in life and health insurance. By allocating earnings towards these essential protections, you shield yourself from unforeseen medical costs and ensure your loved ones' security in your absence. 

Optimally, securing health and life insurance at the earliest opportunity is recommended. This approach helps maintain lower premiums and ensures crucial coverage starting from a young age. 

Health insurance takes centre stage as a top priority, given that women are susceptible to various severe illnesses, such as cancer, chronic conditions like arthritis, as well as reproductive issues. Recognising this, several health insurance providers in UAE have introduced women-centric critical illness policies to offer financial support before these conditions become critical. This necessity holds true regardless of your employment status.

Create an Emergency Fund

Emergency funds refer to the funds that you set aside to handle unexpected or unforeseen events. 

The general guideline suggests having a fund equivalent to three to six months of your expenses, but a more substantial reserve is crucial for you as a woman. This is because women may frequently have to take extended breaks from work. 

As a member of the sandwich generation, it's a harsh reality that you may need to care for elderly parents or in-laws, or even young children, all of which require long sabbaticals that could span years. 

This can create financial stress on the family when transitioning from a dual-income household to a single-income setup, and even a single emergency can worsen the problem. For this reason, your emergency fund should be large enough to cushion expenses for at least a year.

Taking Rein of Your Destiny

In the UAE, women have risen to the challenge and are embracing their roles as architects of their financial futures. As they continue to break barriers and lead in various sectors, it's crucial to prioritise financial independence and security. 

By implementing practical strategies like budgeting, prioritising retirement, investing in health and life insurance, and building an emergency fund, women can take control of their finances and set the stage for a prosperous future.                                                                                                                                                                                         

Remember, the journey towards financial success is a marathon, not a sprint. Embrace these four key strategies, adapt them to your unique situation, and maintain an unwavering dedication to achieving your goals. As women in the UAE continue to soar in leadership roles and beyond, let's strive for financial empowerment that ensures stability, success, and a lasting legacy for generations to come.