Forty-two percent of all women lack financial security and only 6 percent of women are “very confident” in their ability to retire comfortably. With these stats in mind it’s time to stop spending on the “latest and best” and forget about keeping up with the Jones’s and the Khumalo’ s and turn your attention to the big ‘M’ – Money!
Liberty’s Head of retention and financial adviser Boitumelo Mothoagae advises the following steps to help put you on the right path to achieving this.
- Every woman needs a financial plan. Irrespective of marital status, age or income. This includes developing a lasting relationship with a financial planner who understands your needs and unique circumstances. Be proactive and understand how your finances work.
- It is vital for women to make sure that they have their own bank account, whether working or not. A “joint” account is not sufficient as in the event of death of the primary account holder, the account will be frozen and you will not have access to this account.
- We all need a ‘rainy day’ account. This is an account into which you save a small amount each month. It can provide you with instant funds in an emergency to cover anything from the geyser bursting to tiding you over in the event of retrenchment, so ideally aim to have three to six months’ worth of income in your rainy day account.
- Ensure that you can leave a legacy. Create a Will and review it on an annual basis, updating beneficiary nominations to reflect your wishes. Make sure that it is in a safe place but also easily accessible in the event of emergency.
Your money is a huge part of your life. It can determine what you can do and where you can go. Learning how to manage your money the right way is an important step toward taking control of your life.