It’s no secret women tend to earn less than men. This wage gap can be attributed to many factors that may be out of our control. Gaining an understanding of a solid financial education is often more likely for men than women, which can unintentionally undervalue our financial worth. It’s not that we don’t know we need a wealth management plan. It just gets put on the back burner.
Of course, this doesn’t go for all women. Some women are powerhouses in the workplace and set precedence when they walk into a room. They exude confidence, and I’m willing to bet they have reasonable control of their financial and retirement plan. Unfortunately, this isn’t the norm.
If more women understood their finances and what their financial worth is, then women could be better set up to succeed financially. The first step to wealth management is to recognize you are worthy. Then you must determine how much you are worth and how much you need to retire. From there, you can get started on a clear financial plan.

How Much Are You Financially Worth?
Many of my clients have a limited view of their financial worth and willingly accept less. Because they don’t fully understand their finances, they don’t know what number they are truly worth and how to ask for it. Before throwing out a number, we need to take a step back. Part of understanding your worth requires some inner work first. Inner work comes down to believing you’re worth it, financially and otherwise. You get to be confident in your abilities and wear that confidence on your sleeve so you can give off the same powerhouse energy I mentioned earlier. With this comes respect and fair wages.
What is Your Financial Goal?
Everyone’s number may differ because you must consider the cost of living, the number of kids you have, and your monthly expenses. Wealth management takes time and effort. If you know your salary needs to be X amount, and a potential new employer offers a number less than X, you will have to practice the art of negotiation. Speak confidently as you thank them for the offer and ask for more.
If you are unclear about your baseline salary goal, I encourage you to take steps to nail that number down. Don’t just think about it, do the research, and find the data to support your number. It represents your worth, which is very powerful to have during negotiations and financial planning.
How Much Do You Need to Retire?
According to Fidelity Investments, 33% of women do not know their workplace retirement plan. The Social Security Administration says women 44 to 64 years old and unmarried, divorced, or widowed are not prepared for future retirement. This falls on our lack of financial and wealth management education, lack of negotiation skills, and inexperience in the workplace. The average woman works fewer years than a man, so they have less time to gain experience and save for retirement.
There are many factors to consider when evaluating how much you need to retire:
- Your monthly bills
- Groceries
- Savings or emergency fund
- Vacations
- Holiday gifts
- Unexpected doctor’s appointments
- Education Your children’s college fund
Writing everything down is essential to come up with a concrete number and ensure you don’t leave out something costly.

Calculating Your Replacement Rate
Investopedia says your replacement rate is “the percentage of your salary that you’ll receive as income during retirement from your retirement accounts.” Your replacement rate includes variables such as taxes, savings, and spending needs. The rate is not locked in; it can fluctuate throughout your retirement, depending on the market and your tax bracket.
Typically, financial planners use a replacement rate of 75%, depending on your expenses. If you have not worked on your retirement plan for long, 75% may not be feasible.
It’s best to work with a certified financial advisor in conjunction with a career coach to establish a firm financial plan.
Start Your Financial Planning Today!
Many of us regret not starting our financial planning sooner. As a Career Coach, we can work together to ensure your career and life goals are on track while you work with a financial advisor. Your future self will thank you!