Finance expert explains how women can avoid money dysmorphia with smart decisions
Many women face unique financial realities, such as career breaks, caregiving, and longer life expectancy, yet most financial advice ignores these factors, which can affect women in ways that differ from those of men, according to NerdWallet's personal finance expert Kimberly Palmer.
"Money dysmorphia, basically, is when your sense of your own finances is out of whack with reality, and so it can go to either extreme," Palmer told WJZ. "On one hand, you could feel really badly about your financial decision-making and feel like you're doing badly when actually you're doing OK."
How to make smart money moves
With March as Women's History Month, and March 8 as International Women's Day, Palmer explained why it is important for women of all ages to begin making smart money moves to avoid money dysmorphia.
"In your 20s, it's all about setting yourself up for success over the rest of your lifetime," Palmer said. "So, No. 1, you want to practice creating a budget for yourself, tracking your spending and you want to build the habit of savings."
Experts say it might be a good idea to start investing early, protecting your income with the right insurance and maximizing retirement, and staying on top of it through the decades.
"In your 30s and 40s, it's really all about maintaining what you are building," Palmer said. "And so, you want to make sure you have the insurance that you need to protect your assets. So, whether that's homeowners' insurance or renters' insurance, and then also other types of insurance, like even life insurance."
Palmer added, "In your 50s, 60s and beyond, you want to No. 1, max out your retirement savings so you just know that you have that nest egg that you're building review and update all those insurance needs because you still want to make sure you're protecting your assets and then also just update all your estate planning documents."
Financial experts say the top tip is to not be afraid to talk about money.
"It can help to just give ourselves, and a little financial reality check and realize that a lot of what we see might not be realistic and to make our budget that applies to our own financial situations without comparing ourselves to others," Palmer said.
