Sim­ple steps to fi­nan­cial free­dom

Pilbara News - - Lifestyle - Brooke Evans-But­ler

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.

Pic­ture: Getty Im­ages

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