Commentary: The time invested in yourself and your financial future matters most

According to the UBS 2022 Own Your Worth report, Women on purpose: Values, money, and the pursuit of more intentional lives, 80% of women surveyed reported that the events of the past two years have made them reassess what’s most important in their lives. Because of this, seven in 10 women want to make more of a difference personally, as well as in the world around them through their lifestyle and investment choices. 

As a wealth advisor for individuals, families, and businesses in Florida and nationally for more than 35 years, I have experienced several cultural shifts in the dynamics of women in the workforce and their influence and control of financial investments. As the Own Your Worth report shows, the pandemic has illuminated several positive shifts providing opportunities for women to focus on their values and pursue what matters most. 

Exercising flexibility at home and work

Over the last several years, many women have taken on more responsibilities at home and work, balancing careers, household responsibilities, homeschooling, and childcare. Many people want to maintain the work flexibility achieved during the pandemic to focus on their personal and financial well-being. 

In Florida, women are the sole, primary, or co-breadwinners in nearly 70% of families. 

As a business executive and mother, I've had the flexibility and benefit of working from home for many years. Today, greater flexibility is working well for many of my colleagues and clients in Florida, accelerating new modes of business operations that we did not anticipate or widely accept before the pandemic. According to a recent McKinsey & Company survey, when people have the chance to work flexibly, 87% of them take it — a dynamic that is widespread across demographics, occupations, and geographies. 

Additionally, a recent Citrix survey showed that 71% of hybrid workers, those working remotely and in-office, feel strongly connected to colleagues and leadership, which makes them want to work harder. Hybrid employees also reported feeling more productive, engaged, and happy with their job performance. 

Commitment to leading a more meaningful, purposeful life

During this time of reflection and reevaluation, the 2022 Own Your Worth report cites that 68% of women surveyed are more committed to using their financial resources to align with their values and impact social change, whether through volunteering, charitable giving, or ESG (environmental, social, and governance) investing. The report also highlights that four in 10 women have changed careers to find more meaningful work. 

The report also cited that 92% of women surveyed thought that being involved in financial planning can enable them to make more of an impact in the world, with eight in 10 believing that they can pursue a more meaningful life without having to sacrifice their financial well-being.

The 2022 Own Your Worth report also noted that as of 2020, women in the U.S. controlled $11 trillion, about a third of financial assets, and that number could reach $30 trillion by 2030. Unfortunately, the report showed that half of all women in relationships defer to their spouse/partner on money matters. At some point in time, eight out of 10 women will be alone and solely responsible for their finances due to divorce, death of a spouse/partner, or longevity. That’s why women must be empowered to take their seat at the financial table and exercise more decision making and control of their financial future.

Financial literacy is critical for families, starting at a very young age. Florida made a positive move this year in passing legislation that requires high school students to take a financial literacy course to graduate. The curriculum provides a foundation to learn the basics of money management, understanding how to balance a checkbook, avoid debt, save wisely, and invest for future needs and goals. These money management lessons go a long way in helping individuals, couples, and families focus on what matters most in life. 

Taking control of your financial success each day

In life, there’s one word that resonates for me, and it is tenacity. Stick to it — doing a little each day to make changes and achieve goals, big and small. 

From a financial well-being perspective, everything revolves around a realistic budget and living within your means. Develop a “spending plan” with your eyes wide open as the most important part of your plan. No blinders. Owning your spending ensures the sustainability of your resources.

For success, develop a disciplined spending plan based on all resources with designated savings set aside for emergencies and long-term financial goals. If there's a disconnect between spending and resources, close the gap as soon as possible. Many people reflect on their past spending habits and realize they could have saved and invested more. Money spent on unnecessary, discretionary purchases could have resulted in substantial investments over the years that provide additional income for future spending. 

It's truly all the little things you do each day that add up to achieving the big things.

The first step in pursuing a more meaningful, purposeful life, personally and financially, is to identify your goals and develop financial, personal and spending plans to guide you to success.   

Mary Lauritano, CFA®, is Senior Vice President, Wealth Managemen, and Financial Advisor at UBS in St. Petersburg.