27 Aug Personal financial planning and female empowerment
Personal financial planning may seem like an obvious and necessary activity for men and women alike. The reality, however, is that men historically have taken the lead in this sphere while women took more of a backseat. But women have evolved and changed over the past 50 years to emerge as leaders, entrepreneurs, and innovators. The increasing availability of education and opportunity, coupled with shifting roles in the home, has been changing women’s lives. Just as importantly, women are reworking their attitudes towards understanding their own personal finances and ensuring their own financial independence.
However, according to research from UBS, a global financial services provider, 85% of women manage everyday expenses. But only 23% take the lead when it comes to long-term, personal financial planning.
Why it’s important to take control of your own finances
- Being involved will help you feel responsible and boost your morale. Financially independent people are capable of making their own decisions and don’t necessarily need to depend on anyone. This increases their self-respect and makes them more confident to face any kind of situation in life.
- Statistically, women live longer than men. Often if a husband passes away, the wife is left without a clear understanding of their financial position and financial future. This would result in added stress during a very difficult time.
- According to a Stats SA report released in 2018, 4 out of 10 marriages end in divorce before their 10th anniversary. So, ultimately, relying on your partner’s financial plan alone could potentially lead to financial stress.
How to take control of your personal financial planning
Establish your goals and be involved in creating a clear financial plan
Create a financial plan that helps you see the big picture. Establishing short- and long-term life goals is a crucial step in mapping out your financial future. When you have a financial plan, it’s easier to understand your position, make decisions and stay on track to reach your goals
Get financially ‘clued up’
At Netto Invest, we believe in educating our clients so that they can make informed financial decisions. We feel that we are not there to make decisions for you. Rather, we educate you about finance and guide you in the process of making your own decisions.
Raise your voice
As your financial planner, we are here to answer any questions relating to your finances. It is important to remember that there is no such thing as a silly question! And we are always available to offer any assistance or guidance where necessary.
Spend time getting to know and trust your financial planner
The relationship between planner and client is very important. Your planner will know all about your finances and be able to help you make big investment decisions. So, get involved in the financial planning process as much as possible and spend time developing your relationship.
It’s often easy to hand over financial responsibility to your partner or a family member. It’s easy to rationalise that you’re too busy to worry about your finances or finance is ‘just not your thing’. At Netto Invest, we encourage all our clients to be financially empowered. Being financially empowered means being aware of where your money is coming from, where it’s going, how it’s invested, and how you and your family are financially protected should anything unforeseen happen. It’s okay to split your financial responsibilities, but it’s not healthy to turn a blind eye to them. So, have regular discussions on the status of your finances with your family as well as your financial planner.
As one Chinese proverb states, “Tell me and I’ll forget; show me and I may remember; involve me and I’ll understand.” At Netto Invest, we think it is essential that women vocalise their needs and concerns, get engaged in the management of their financial futures and create their own financial identity.
Shelley Rishworth is an articled financial planner at Netto Invest.