With more focus being placed on gender equality through equal job opportunities and shared responsibility, financial advice for modern women is more important now than ever before.
Women are more driven to be financially independent than ever before. This means that the modern-day woman no longer feels compelled to depend on her partner or anyone else for financial support.
However, sometimes being financially independent can be more difficult than it sounds. Therefore, in light of August being dedicated to women, we have put together a few tips specifically for women who want to achieve financial independence.
Short- and long-term goals help up stay on the path towards achieving our dreams. Without goals, we may find ourselves stumbling around with little direction and even less determination.
Whether your goal is to save enough money to finally go on the holiday you’ve been dreaming of, or to eventually put down a deposit on your very own home, simply by setting the goal, you can now find ways to make them happen.
A short-term savings plan with a high interest rate can help you save a decent amount of money in a short space of time which you will have quick access to.
A longer-term investment can help you gather the capital you need for the deposit on your home and maybe even your first few bond repayments.
Sometime it’s easier said than done, but striving to spend less than you earn can be hugely beneficial for your financial situation.
Unfortunately, anything can happen and you may suddenly find yourself without a stable form of income and, without a back-up, the last thing you want to be facing is major debt that you are unable to settle.
Living within your means by avoiding unnecessary credit is your one-way ticket to financial independence.
So, ask yourself, do you really need that 4th clothing account or 2nd credit card?
Take the time to educate yourself on the basics and, if you wish, the not so basics of the financial world. Knowing how to plan your finances as a woman is an invaluable tool.
In doing so, you won’t need to rely on anyone else that you don’t trust wholeheartedly to manage your finances for you.
It’s just too easy to lose track of where you are financially if someone else is looking after your investments. This, of course, doesn’t apply to having a good working relationship with a qualified financial advisor, but rather to cases of letting your uncle’s cousin’s son who is good at mathematics look after your money for you.
By knowing where your money is invested, how much interest rate you are earning as well as how well your investments are performing are all things you should be informed on at all times.
Be careful of getting into situations where you become responsible for someone else’s debt. If you’re getting married, a prenuptial agreement is more beneficial than sharing debt with your partner.
For example, being married in community of property may seem like a good idea because everything is shared. Well, when they say “everything”, they mean debt too.
If your partner passes away, leaving behind millions of rand’s worth of debt, it means that you will be left with the responsibility of settling that debt, which could cripple you financially.
Additionally, being a single parent in today's financial climate is not easy - we aim to try make your journey easier by providing financial advice where we can.
Your number one priority should be to settle all your bad debt as quickly and efficiently as possible. This is easily the most important financial advice for modern women that we can offer.
The more bad debt you have, the harder it will be to save or invest. The sooner you settle your debt, the sooner you will be able to invest that money instead, and although chipping away at your debt may feel great, investing that money is far more rewarding.
We offer sound, indiscriminative and unbiased financial advice for women who strive to be financially independent, regardless of their relationship status or pressure to adhere to societal standards.
For more information, or to arrange a consultation with one of our financial advisors, please feel free to contact us at any time.
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