There are many unique factors that make financial planning different for women, including higher health care costs, more years in retirement, the gender pay gap, and caregiving responsibilities to name a few. But investing can be a way to help your money work harder for you that may help you prepare for your future.
More women are investing in the stock market than ever before—71% in 2024, up from 60% in 2023.1 Even during times of volatility and uncertainty, women are more likely than men to stay invested and not decrease their contributions. However, 43% of women say they aren’t sure how to handle future dips in the market.2 So here are some things to keep in mind to help you feel prepared no matter what happens in the market.
1. Check—or create—your financial plan
Nearly 1 in 4 women have a formal written financial plan.2 If you do have a financial plan, that’s great! Congratulations—step 1 is complete, but now may be a good time to check in. During times of volatility, the strength of your financial plan can be tested in ways you may have not imagined. And that can cause some strong feelings, which can sometimes complicate financial decisions. So it's always a good idea to prepare for the unexpected before something happens, like losing a job or a recession.
And if you don't have a financial plan, there’s no better time than now to create one. Planning can help you see where you stand now and give you a roadmap to a financially secure future. It can be a balancing act, saving and investing for the distant future while also taking steps to pay down any debts, protect what you have, and cover day-to-day expenses. Consider working with a financial professional to help you create a plan that works for you.
Next steps: DIY a financial plan or give us a call at 1-800–FIDELITY (800-343–3548) to schedule a FREE planning session.
2. Boost your emergency fund
When the economy is uncertain, it’s a good idea to check your emergency fund to make sure you have a comfortable cushion. Start by saving $1,000 and then keep adding until you've hit a level that helps you feel secure. Ideally, you should try to save enough to cover 3 to 6 months of essential expenses. Some people may want to save even more than that. Don't worry if your emergency savings isn't quite there yet; 3 months' worth of essential expenses is a lot of money to set aside, but if you are diligent in saving each month, you can slowly but steadily build up to that point.
Next steps: Read How much to save for emergencies
3. Invest consistently—even in tough times
Though it can be concerning and even upsetting at times, market volatility is a regular part of life in the stock market, and emotions can certainly come into play when markets get choppy. And even though historically stocks have recovered and delivered strong long-term gains, no one likes to lose money in the short term.
Automatic investing can help give you discipline to invest consistently regardless of what’s happening in the market. Think about the most effective recurring investment plan around: a workplace retirement plan, like a 401(k). Since you don't see your contributions come in or go out of your account, you don't even think about it, and you’ve probably stayed consistent. Taking that same approach with investing outside of your retirement plan can help you stay in the market on both the good days and the not-so-good ones. It’s about the time in the market, not timing the market.
Next steps: Read Help your money grow with automation
4. Get help if and when needed
Most women admit investing intimidates them, and even though more women are investing than ever before, they still don’t see themselves as investors.1 This is where a financial professional may be able to help. Not only can they work with you to establish a financial plan, they can meet with you on a regular basis and help you make any changes necessary to your plan. They can also help you establish a professionally managed account, where the investing is handled for you, which may potentially help you stay invested in a down market. For example, instead of panicking and selling when the markets drop, having a managed account based on your timeline, financial situation, and feelings about risk may help you stay invested for the long term.
Next steps: Consider a hands-off investing approach with Fidelity Managed Accounts
5. Keep perspective
Sometimes our natural reactions are not the most helpful. That's why it's always important to keep your long-term goals in focus. If you find yourself overwhelmed or tempted to cut your losses in the market despite a well-considered long-term investment plan, take a moment to reflect on what's really driving your choice and if it’s in your long-term best interest. Practicing mindfulness can help you develop the discipline you may need to avoid emotional money moves that you may regret down the road. And remember, keep perspective—downturns are normal, and nothing lasts forever.
Next steps: Read Markets, emotions, and you
The bottom line
The best defense is a good offense. Investing through market ups and downs can yield long-term growth potential, and the best time to plan for the worst-case scenario is when everything is going great. That way, you have a plan in place that you can follow when life inevitably happens. Read more on the latest market insights and market volatility resources, and if you have any questions or need help getting started, select the “Get started” button below to find a Fidelity professional near you.