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Smart Women Finish Rich
Read in 14 min.
Listen in 17 min.
Learn the key ideas of the book by David Bach

Smart Women Finish Rich

A guide to managing our personal finances

We all need to be responsible for our own finances, and avoid delegating the management of our money to other people. This is especially true for women, who on average, earn less than men, have a more unstable working life as a result of social responsibilities, and tend to live longer. These factors mean that financial planning is not just an option for women, but an absolute necessity. In this updated version of Smart Women Finish Rich, David Bach provides a series of practical tips to help women, and everyone else, to achieve and maintain financial security.

Smart Women Finish Rich
Read in 14 min.
Listen in 17 min.

Financial planning is important for everyone, but especially for women

Although it seems unfair, as a result of the gender gap in salaries, and the fact that women tend to live longer than men, it is still especially important for women to draw up a financial plan. In America, for example, estimates show that, on average, a woman earns only 80 cents for every dollar earned by a man. What’s more, women often have a less stable regular income than men, due to gender discrimination and the fact that women generally shoulder various social responsibilities, such as raising children and caring for the elderly. These responsibilities force women to leave and re-enter the labour market much more often than men, and they are therefore often the first employees to be let go in staff cuts. It also takes women longer to find a new job than men, so they often resort to taking part-time jobs that pay even less and offer fewer benefits. This means that women are able to put aside less money for their retirement, even though they will need to use this money for longer than men, as they tend to live longer. All this makes it especially essential for women to have a long-term financial plan.

Women also tend to have a more emotional relationship with money. The ‘Bag-Lady Syndrome’ is a symptom of the widespread fear among women that they will end up penniless, even if they are well off. According to research conducted in 2006 by the Allianz Life Insurance Company, 48% of women with an annual income of at least $100,000 worry that they will end up penniless and homeless. This anxiety is the result of two main factors: a lack of self-confidence, and an underlying dependence on other people. In order to overcome this emotional approach to finance, we must first be completely aware of our financial situation, and then understand what role money plays in our life.


The key ideas of "Smart Women Finish Rich"

Financial planning is important for everyone, but especially for women
In order to manage our portfolio effectively, it is important to identify which values we associate with money
We need to debunk three main myths about money, in order to achieve financial well-being
If we want to achieve financial security, we have to be organised
Successful people know exactly where they want to go, and this also applies to financial success
We have to pay ourselves before paying others
The three-basket approach helps us achieve and maintain financial stability
Being aware of the most common investment mistakes helps us avoid falling into the same traps
Take-home message
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