Financial Planning for Women.
Be financially secure on your own.
Women manage money in a different way to men.
They often have less time to consider the subject, as they have a career or family to consider first.
Women are involved in the mainstream of life, outside of the old walls of home.
You are remaining single longer so you can achieve realistic career goals.
Mature women are returning to the workforce, not only for financial gain, but also for self fulfilment.
Your earning capacity is a vital part of the economy...just look at the tax you are paying.
You need sound financial planning to protect yourself and your loved ones in times of stress.
Whatever age you are now, the worst thing you can do is to wait before taking action!You need to make sure you can afford the things in life tomorrow and in retirement.
- One in four women are on their own by age 64, whether through divorce, separation or widowhood.
- Eight in 10 women will manage their own money at some point during their lives.
Only 2 will have the luxury of not having to worry! - Women with retirement plans generally save 5% of their salary, versus 15% saved by men.
- Of widows living in poverty, 80% were not poor before their husbands died.
Financial Plan
In order to see just what have you own, you'll have to budget.A budget establishes ahead of time where your money will go, and gives you a new power over your money.
Most people are unconscious spenders, buying the same things every day out of habit, or buying on whim.
But living in this way will empty your purse fast.
Remember, a budget is dynamic and changes as your life progresses. It's a balancing act to maintain a comfortable lifestyle while planning for the future. The reward is worth it - you'll eliminate your anxiety and gain control of your money.
You've got money left over at the end of the month - great!
If you don't, that's all the more reason to invest.
You'll need to do some adjusting to your spending, saving or income before you begin an investment plan.
Emergency fund.
You need to invest around 4-month's worth of living expenses in a money market fund at your bank.
It needs to be liquid so you can get money in a hurry.
Life Cover.
Women actually face greater risks than men. Heart attack and strokes, previously the domain of males has now become a significant threat for women. And the added threat of breast cancer makes it vital you have life and dread disease insurance.
If you are young and single you may not need life cover, but remember life cover is cheaper and more easy to get at your age.
It only gets more expensive - the longer you delay! Suffer an life-threatening event and you may never be able to get cover, let alone be a financial cripple.
Disability or a Dread Disease
What if you cannot earn an income because of an accident or illness
How will you meet your bills and live?
Surely, you don't want to be a financial burden on those you love?
If you have any liability like a bond or car, please consider life cover.
Maybe you share a town house with your boyfriend. What if he dies or is disabled and cannot help with your bond?
Have you considered a partnership type agreement with him to secure your home?
If you have dependants, you must have cover!
You want to ensure that, at least, your children are protected until they are self-supporting.
The costs of replacing your skills around the home will run into hundreds of rand per month.
Could your husband afford a full-time au pair?
You may be dependant on your husband's income.
If so, has he sufficient cover to protect you and your children?
Widowhood is a distinct possibility and, distressing as it is, you must consider it.
Some women face financial chaos when widowed. If you rely on your husband's bank account and it is frozen on his death - then what?
As bearers of the next generation, you carry an awesome responsibility.
And although it may be tough paying the premiums, insurance is one of those things that is better to have and not need, than need and not have!
Save around 10% to 15% of your salary for long-term savings like your pension.
If you want to help your children pay for a deposit on their home or provide a wonderful wedding for your daughter - you need to save.And the sooner you begin - the greater your benefit and the sooner you will be financially independent.
The effect of compound interest is a much-misunderstood concept.
Education for your children is a priority. Start early - at birth. And if you have not done so, it is never too late to begin.
Every cent will help.
Like an indication of what you should be considering as a monthly education plan saving?
Please complete the Education fees quote.
Pension Planning
Having no money today is bad enough, but just think how bad it would be if you had no money when you were 80 years old and have to depend on your children. Terrible thought.You loose out because you break your career to raise a family. Your retirement savings suffer and in most cases women don't have a plan at all!
You generally live longer than men. Just visit a retirement home to confirm this.
Your pension must last longer than that of a male.
Therefore, you need to start pension savings as soon as possible and save more than men if you take a career break.
If you rely on your husband's pension you are treading on dangerous ground!
The rate of divorce is high. One in three marriages end in divorce.
It may be pessimistic to plan around a future divorce, but to ignore it is foolish.
On average, single retired women have a third more income than divorced retired women.
If you have taken a career break to raise a family and are back at work, your priority now is to maximise your pension savings.
Want a quote - please complete the Retirement Plan Quote
Knowledge is power and also peace of mind!
If you don't know who handles your family finances you are likely to fall prey to your own helplessness and the vultures out there.
- Who owns what?
- Whose name is the house in?
If your husband goes insolvent, will you loose your home? - Do you both have wills? Who are his beneficiaries?
If he was divorced, has he changed his old will?
Where is his will and other vital documents like the title deeds to your home? - What pension benefits does he have?
What group life cover has he got and are you a beneficiary?
If you are getting married, it is vital you investigate the type of marriage you want..
Women handle more than half of a family's day-to-day finances, yet they handle virtually no family investment decisions.
Not surprisingly, after learning key investment principles, women have earned higher returns than men have.
Hopefully this will plant a seed for you to take your security a little further.
If it does then please, please call me - don't let it wait!
083 655 2164
Medical aid pays healthcare costs.
What if a disability STOPS your income?
Peter Pyburn - Authorised Financial Services Provider, fully licensed to render financial services since 1991. Death and Disability Planning; Retirement Planning; Investment Planning; Healthcare and Estate Planning. More...
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Last update: October 3, 2024