Nolene Parboo, Standard Bank's senior manager for deposits says women should take ownership of their finances. "Deferring to someone else may be a short-term solution, but in the long-term almost all women will have to deal with making their own financial decisions at some point in their lives," she says.
Here are her top 10 tips to taking control and keeping on track:
Face your demons
If you have historically avoided all things financial, now is the time to take the wheel. Get familiar with financial terminology, read books on money management and make an appointment with a financial advisor. They will help you organise your life and get you thinking about a strategy.
Take control of your cash and maintain a firm stance
If you have a partner who likes to keep control of the cash, be firm about your position. He needs to realise that he may not always be there for you and if he insists on keeping you in the dark, it could severely compromise your financial future.
Devise your own methods of money management
Make a list of your goals and needs and allocate funds to them. This will give you a picture of what you must save each month. If you realise that you don't have the funds to achieve these goals, scrutinise your budget and identify any inefficiencies. Work out how much you owe and settle as many accounts as possible. Retail debt, as in clothing and furniture accounts, is the most expensive debt, so target these first. If you are married you should go through this process with your partner, you will both be better off at the end of it.
Get covered
If you are married or in a long-term relationship and you do not work, you need to make sure that your partner has enough life and disability cover to protect the family financially should he suddenly pass away or be disabled. If you are single, income protection and disability cover are very important as you will have no-one to fall back on if you can't work.
Assert yourself in your career
Women tend to be less forceful in procuring raises in income than men. Don't shy away from asking for what you are worth. Building financial stability is not only about smart investing, it is about earning the money to invest in the first place.
Invest in yourself
A woman usually gets so caught up in balancing work and home responsibilities that she often forgets to keep her skills current. Take as many courses and development programmes as you can to ensure that your skills remain in high demand. This will translate into better income down the road.
Never give up and don't let small setbacks push you off track
The key to successful money management and investing is consistency. Determination and focus will get you to your financial goals.
Have your own credit cards and bank accounts
Having accounts in your own name builds your credit record and will help you access credit in the future. In the event of a divorce or the death of your partner, having your own access to money and credit facilities will make your life a lot easier.
Use the experts around you
If you are new to the money game, speak to your financial consultant. They will be able to set you up with your own accounts and advise you in terms of the best products for your needs.
Recognise that your needs, namely retirement needs, are different from those of men
Women generally retire earlier and live longer than men, so the lump sum needed at retirement is higher. Even if a woman saves 15% of her salary for 20 or more years, the chances are high that the savings will fall short of what is needed. Most men are underfunded too, so a joint effort in this regard is vital.
This advice piece was written by Nolene Parboo.
