In our diverse roles as women – whether single, committed, career-driven powerhouses, nurturing caregivers, or super-moms – we consistently prove our remarkable capabilities. However, there's one aspect where we often fall short: our financial well-being. It's time we change that.
As a full-time financial advisor, wife, and mother, I'm no stranger to the temptation to postpone financial decisions. We've all been there, uttering phrases like "I'm too busy," "There are more pressing matters," or "I'm just too tired." But it's time we break free from these excuses.
Taking control of your financial future doesn't mean shouldering every responsibility or disregarding others' input. It's about active involvement and understanding the decisions that impact you and your family. It's about leveraging the strengths and addressing the weaknesses within your relationship or family unit.
For instance, while I possess financial expertise and am inclined to create budgets and manage insurance, my husband reminds me, amid the chaos of a working mom's guilt, that our daughter doesn't need a constant stream of new toys or treats.
Understanding your financial world extends beyond budgeting, spending, and saving. It's a holistic perspective that recognises the pervasive influence of money in our lives. Here are some key considerations to keep your financial house in order:
1. Wills and legal aspects:
- Ensure your will is current and relevant.
- Consider a living will.
- Adapt to life changes (e.g., marriage, divorce, or business transitions).
- Create a "death file" for your family.
- Understand trusts and their financial implications.
2. Medical aspects:
- Regularly assess your medical aid to match your needs.
- Review your gap cover.
- Take advantage of annual health check-ups.
3. Short-term insurance:
- Periodically review your short-term insurance policy.
- Confirm you're neither underinsured nor over insured.
- Understand policy exclusions and definitions.
- Update relevant information with your insurer.
4. Tax affairs:
- Keep your taxes in order.
- Collect required tax documents.
- Seek professional advice for significant life changes.
5. Financial planning matters:
- Maintain an emergency cash fund.
- Keep an up-to-date budget.
- Manage and understand your debt.
- Consult your financial planner regularly.
- Conduct a financial needs analysis.
- Review risk insurance for adequacy.
- Reassess short-term, medium-term, and long-term financial goals.
- Understand investment structures and performance.
6. Business structures (if applicable):
- Consider business-related implications on your finances.
- Plan for business debt and contingencies.
- Establish exit strategies for business involvement.
Seek professional guidance from a financial planner who can navigate the complexities of your financial world with you. Their expertise and advice are invaluable, helping you set and achieve financial goals. Importantly, only with your participation can a financial planner assist in keeping you accountable in achieving your financial goals.
For those in committed relationships, I encourage open conversations with your partner to manage your financial world jointly. It may entail compromises and occasional disagreements but strengthens your financial foundation.
For single women and single moms, remember that your financial security rests on your shoulders. Embrace it and seek professional help.
Women are more capable than we often acknowledge. It's time to seize control of our financial destinies if we haven't already. Let's empower ourselves to build a financially secure future.
