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8 tips from financially successful women

Putting away money for retirement hasn鈥檛 always been easy for Sarah Boothby, a self-employed executive recruiter in Portland, Oregon. Still, she credits her parents for emphasizing the importance of saving.

鈥淏oth of them 鈥� I mean from a very young age 鈥� talked about how much money we need to put into our retirement funds. Just in general, financial management has been one of the key things that was consistently emphasized to me while growing up,鈥� she says.

So maybe it鈥檚 no surprise that she鈥檚 actively saving for retirement. Her secret? 鈥淚 have to set that money aside without ever seeing it in my bank account,鈥� she says.

How successful women save

That鈥檚 one strategy for building up your savings (out of sight is often out of mind) but what other strategies are used by financially successful women? New research conducted by The Harris Poll on behalf of 麻豆传媒 asked women to identify the saving and investing habits that helped lead to their success.¹ 

The research asked more than 500 women age 55 and older with personal investable assets of $1 million or more what they had done to attain their goals. 

Many of their strategies were like those used by men to achieve financial freedom, but women have different challenges when it comes to retirement planning. Women often live longer, earn less and are more likely to have to use savings to care for a spouse or relative.

Where to start

Where to begin? How about with some basic savings steps. After all, you need to be able to put aside some money before you can think about investing it.

Start smart, start now

That means, getting going as soon as you can. It鈥檚 never too early 鈥� or too late 鈥� to start. But the sooner you start saving the more time your money has to grow. And thanks to the magic of compounding interest, that can make a big difference in the total wealth you can accumulate.

Ditch the debt

At the same time, try to avoid high-interest debt, like credit card debt. After all, the more money you need to pay down debt, the less you鈥檒l have to invest. That makes a difference, especially in the long run.

Make saving a habit

And that鈥檚 the final point here 鈥� you鈥檙e in it for the long haul. It鈥檚 a marathon, not a sprint, so consistency counts. If you need more inspiration, just know that this was a key strategy for women who have accumulated more than $2.5 million in investable assets, according to the research. 

What to invest in

Once you have some money set aside, the next decision is where to put it. There are a lot of different investment and savings options out there. Which ones are right for you?

What鈥檚 your risk tolerance?

Start by looking at your appetite for risk. You can take our online quiz to determine your risk level, but it likely boils down to this: If you can invest in a portfolio and relax, it鈥檚 at your risk level. If, on the other hand, you worry about it consistently or it keeps you up at night, you may need to dial back your risk exposure.

Don鈥檛 put all your eggs in one basket

That鈥檚 why diversification is so important 鈥� spread your money around. Opting for a risk-managed portfolio with a variety of asset classes with different risk levels can help you weather the downturns more smoothly. If you do it successfully, a downturn in one investment can be offset by gains in others. Some insurance products may also help temper risk: A fixed indexed annuity can provide built-in diversification, along with protection from loss due to downturns in the market.

Making it all work

What are you working toward? What are your financial goals? 

Chart your course

Do you want to travel the world, put the grandkids through college or just kick back and be comfortable? Whatever the answer, having a road map to get there is critical.

Empower yourself with knowledge

Believe it or not, mastering money is complicated 鈥� even the experts have to keep learning and educating themselves. That鈥檚 why you may want to pick up a little knowledge along the way about investment options and market trends. It doesn鈥檛 have to be a full-time job, but a little learning goes a long way.

Partner with a professional

Finally, many women find that working with a financial professional is immensely helpful. More than 75 percent of women in the survey said they work with one, and 50 percent credited their success to advice they received. 

Wherever you are in your retirement planning process, these strategies could give you a boost. Following a disciplined plan and focusing on your goals, as well as working with a financial professional, can help deliver the results you need to enjoy a happy retirement, whatever that means for you.

Need some expert help to get you rolling? Check out these tips on finding a financial professional who fits your needs.

1.  Survey of 500 women age 55+ with personal investable assets of $1M+ in the U.S. Harris Poll conducted for 麻豆传媒, February 2004.