Simple steps to financial freedom
Everyone wants to be financially secure, so we asked the experts for more advice to ensure your finances are adequate for your needs — no matter what your stage of life.
Simon Podesta, certified financial planner professional and principal at Infinity Wealth Solutions, says to ensure a woman’s financial plan is adequate, planning ahead is paramount — and should cover both long and short-term goals.
“Actively review your financial plan and goals on at least an annual basis — your plan shouldn’t be set-and-forget as things are always changing around the world and in your own life, so adjustments will be needed from time to time,” Mr Podesta says.
“Many women are great at managing cashflow and hitting targets but quite often they fail to consider the unexpected. Having an emergency fund and adequate personal insurance in place is very important.” Mr Podesta says there are common mistakes women make when it comes to their finances.
“Generally speaking, women are less likely to be risk takers when it comes to money,” he says.
“A common area which we help our female clients with is understanding what their superannuation is and how it works. For younger women in particular, it may be worthwhile stepping out of their comfort zone and investing into more growth-type investments in their super. Whilst this carries more risk, they aren’t touching the money for somewhere around 30 years and can wait out any volatility in markets.”
He said another common mistake was letting a partner control the finances.
“Quite often, we come across women who don’t know where their money is or the full financial picture of their household,” he says.
“Money is one of the biggest things couples argue about, so knowing how things stand goes a long way to preventing arguments and avoids surprises if there is financial trouble.
“This is really apparent for older women who may get divorced later in life or become a widow and their partner has handled all the money over the many years together.”
Marie Watts, a certified finanical planner from Boutique Advisers, says women under financial stress should consider making an appointment to see a financial counsellor by phoning a free service on 1800 007 007.