Are you a working woman? Are you in control of your financial future? Research shows that, as much as women are doing it for themselves on the work front, they are often not as money-savvy as their male counterparts. Whatever your earning power, the sooner you start looking after your finances, the more secure your future will be.
Here are our three big wealth management tips for working women:
1. Take control of your money
You wouldn’t let someone tell you how to dress or what to eat so why would you leave your finances in the hands of someone else, without any input from your side? Too many women leave money concerns in the hands of their husbands or fathers. If you are earning your own salary, you need to know how your money is used and what it can do for you. It is important to remember that women have different financial planning needs to men. Educate yourself about financial planning and wealth management. This doesn’t mean you have to go it completely alone. Find an experienced, reputable financial adviser who can help you put together a portfolio that will protect and grow your wealth now and into the future.
2. Save first, spend second
It’s true that you work hard so that you can enjoy your life, but spending more money that you earn in the short-term (for reasons of instant gratification) will not make you happier in the long run. Whatever you do and however much you earn, you need to save first – saving and investing your money will help to protect you against unexpected financial hits (for example, an interest rate increase that affects your bond) and help to secure your future lifestyle (when you are no longer able to work or have chosen to retire). There are a number of different ways to make sure you are actively saving every month. Once that’s done, you can afford to reward yourself a little for a job well done.
3. Set up an emergency fund
The sooner you can take this step, the better. Life is unpredictable and you might find yourself facing an unexpected financial debt (such as a large medical bill or even being retrenched) when you can least afford it. Situations like these can plunge you into debt, creating money troubles that you didn’t previously have and that are hard to get out of. Rather, put aside emergency fund money every month and, if you have to use it, start topping up your fund again as soon as possible.
If you aren’t where you want to be financially or you are fortunate enough to have wealth but are not sure how to manage it, you need to seek the help of a professional financial adviser.