3 ways women can start building wealth today that will pay off for decades

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• Women face unique challenges, but there are steps to take today to build wealth for the long term.
• First, consider preparing in advance for any time you might have to take away from the workforce.
• Then, automate your savings — and make sure you're investing some money, too.

Women have come a long way, but there are still challenges. The gender pay and retirement gap, rising costs of child and elder care and the pink tax, to name a few.

In recognition of Women's History Month, here are a few tips for women to consider as we prepare for our financial futures. 

1. Prepare for potential time out of work

Whether it's taking time off to finish school, care for children, or take care of aging parents, many women find themselves taking a break from the corporate world. We saw this up close during the pandemic, when women were almost three times as likely to be out of the workforce due to childcare demands. 

These career breaks can have a long-term impact on finances. Oftentimes these breaks are not planned, but if you think one of these breaks may be on the horizon, start planning for it now. Start saving aggressively to cover basic living expenses during that period. You do not want to spend down retirement savings or max out credit cards to get by.

2. Focus on investing, not just saving

Women are savers, but there needs to be an increased focus on investing. The difference between the two is that investing has the ability to compound and grow your wealth over the long term. 

As Lynette Khalfani Cox told me, "It's OK to start small and build up over time. And save anywhere you can — it all grows. What stops many people from saving and investing is that they think that they have to start off with $5,000 or some big number, and that is not true. Save what you can consistently and you will see that money grow."

Keeping that in mind, it's important to maximize retirement contributions when possible. If your workplace offers a 401(k), start contributing as soon as you are eligible. If they offer a company match, then try to save at least what they are willing to match — and try to save 15% to 20% of your gross paycheck overall. 

And don't feel like you have to be attached to a corporate employer to save for your retirement. Start funding your own retirement now by investing in an IRA. With a Roth IRA, money is allocated for retirement after taxes, so your investment grows tax-free.

3. Automate your savings

Automating your savings is a smart way to save more. Set it and forget it: You can either set up a recurring transfer from your checking account into a savings or investing account, or split up your direct deposit and funnel a part of it into accounts to build wealth. 

This will become such a habit, you will forget that you are saving money because it's transferred into savings before you even see it. Once it's in your account, leave it there and watch it grow.