Women hold 40% of global wealth and are expected to live longer than men, yet 52% of women have never held an investment product, compared to 37% of men in the UK. Women also see their salaries peak faster and historically experienced smaller pay rises as reflected in the gender pay gap (partially due to the fact that many women take career breaks to raise children).
The modern woman is changing her attitude towards financial planning and investments. She recognises the need to be financially savvy. So here are 5 useful tips to ensure that woman strikes an important balance between a mother and wife, and a financial feminist. #BalanceForBetter! Happy International Women’s Month!
Focused and sustainable strategy
For financial planning for the future; consider the values and goals that are most important to you. Having a balanced and diversified portfolio has become increasingly important, to hedge against the risk of uncertain economic times in different parts of the world. Ask yourself these questions:
Where do you see yourself financially in five or ten years?
What are the things you value most in life?
What goals do you have for yourself and your family?
What assets would you like to leave to your children?
What do you envision your retirement to be like?
Always be aware that when you invest, your capital is at risk.
2. Plan for your financial well-being
for now and the future. Planning means being prepared for unexpected or difficult situations, such as ill-health, death or divorce. Understanding what to do in such difficult situations is often rooted in financial decisions, and being prepared financially may make an unfortunate situation more bearable. Planning should also include providing for the resources to take care of your loved ones on your demise, including estate planning for the distribution of your assets to your family and beneficiaries on your death.
3. Be involved in your family's financial well-being
whether it’s the children’s education, financing your family home, providing for ageing parents or planning for you and your spouse’s retirement. Don’t be left out of discussions about investments and financial planning when your spouse or partner is discussing with the bank. Today’s women should play a role in managing the family’s finances, as well nurturing the children (as the next generation) with the life skills, emotional intelligence and financial education to prepare them to be preserved and build up the family’s existing wealth. This is only possible when the woman herself is financially savvy.
4. Be Organised
In record-keeping of documents which relate to ownership of assets, financial statements, liabilities (like a mortgage and other debts), health and medical information, insurance policies and tax returns. Make sure that such information is easy to find, as it will always be needed for your regular review of your financial position.
5. Conduct regular reviews of your finances
in the context of your family’s financial situation, as well as the goals and priorities for your family and yourself.