Many women, despite having money in their wallets and a good salary, fear that they’ll end up alone, homeless and destitute. Millions of women in the U.S. have “bag lady syndrome.” These women harbor the fear that they could lose their money—-their financial security in an instant. Even affluent women suffer from money anxiety.
Minnesota-based insurance company, Allianz surveyed almost 2,000 women in 2006 and a “startling” 90 percent of women said that they felt financially insecure. Almost half were troubled by a “tremendous fear of becoming a bag lady” — 46 percent of women overall, and 48 percent of those with an annual income of more than $100,000. An additional 57 percent were sorry they hadn’t learned more about personal finance in school.
Generally women are unprepared and overwhelmed when divorce or widowhood forces them to take sole responsibility for their financial security. For women who have anxiety about becoming a bag lady, these transitions can feel like their worst nightmare has come to life. Consequently many women tend to avoid money, horde money or invest too conservatively to make enough money to life comfortably later in life.
Despite the advances women have made socially and professionally, when it comes to money many women still adopt a traditional role. Women typically depend on the men in their lives to earn the lion’s share of the money and manage their savings and investments. In these situations the woman, even if she works outside the home, focuses on managing the household and raising the kids. The result is that many women don’t participate in the management of their household finances. In the event that the husband/partner dies or leaves, they are also less likely to have female friends who can advise them about their money.
The best way to guarantee that you are financially self-sufficient is to take the steps now to gain more control over your money. As women and mothers our goal isn’t to beat Wall Street financial experts. Our chief objective should be to make the best decisions that we can to ensure our family’s economic security.
If the topic of money scares you, overwhelms you or just makes you feel stupid, then I urge you to register for my FREE preview teleseminar, “The 3 Keys To Creating Your Financial Freedom” that takes place on Tuesday, March 9, 2010. On this call you receive easy to follow, but valuable information about how you can create financial security for you and your family.
