Woman need to become financially independent

2007/07/18

Men are the traditional bread winners, they get more prize money in sports, are offered higher paying jobs and women have been left to make do with what they get, but this is a perception fast changing as more and more woman take the financial fate into their own hands.

More and more women, worldwide are moving into personal finance, wanting more control of their financial affairs and woman seem to better at the conservative investments. In fact in the US, women-only investment clubs have regularly outperformed their male counterparts.

Unfortunately while 98% of all women will one day have to manage their own money, very few are equipped to do so, and as money matters is not a compulsory school subject, it is time that women start learning about good money management, investment opportunities, retirement annuities, unit trusts, good business practices, the New Credit Act etc

Research recently conducted by Martin Ryman the CEO of PlayUKLottery.com found that 90 percent of SA women would rather go on a lavish holiday if they had to win extra money. 74 percent would spend the money on expensive beauty treatments.

The research was conducted among 15 000 South African and looked at how differently SA men would spend the money as opposed to women. 79 percent of the women questioned said they would rather spend the money designer label clothes or accessories rather on than on benefiting their families.

According to Ryman, women don’t just want their luxuries in the future, 66 percent of them want them. It is however interesting to note that woman younger than 30 tended to be more concerned about the financial well-being of their families, compared to only a 25 percent over 30.

This is good news and even better news is that there are simple measures that women can take to empower themselves in the world of finance.

As always, education is key so do the following:

·       When you go to the bank, pick up as many financially informative pamphlets as possible

·       When opening a new account, compare the different banks against your individual needs

·       Take a valid interest in drawing up the household budget

·       Open a savings account that gives you a good interest rate

·       Watch the business review and generally take an interest in the financial news across the world

If you are single and managing your own budgets and accounts, it is best that you draw up a budget that encompasses all your income and expenses. All income should be added up and then the following expenses need to be deducted:

• Housing costs (rent, bond etc)
• Food costs (the necessities, not the luxuries)
• Transport costs
• Necessary clothing
• School fees
• Medical expenses

Once these have been deducted, look at what accounts need to be paid off and divide the rest of the money across these, leaving some for emergency expenditure.

If you a lot of debt, do not borrow money to pay it off, rather draw up a budget and pay the debts off with your own money, and to pay high-interest bearing accounts, such as credit cards, off first. Although if you have a small debt of less than R50, pay it off as quickly as possible and put that money towards your bigger debts.

When you get married, it is a good idea to have two separate accounts, eve if you decide to pool your money. This means that you can remain financially free, no matter what happens to his account or his financial record.

Before getting a home loan or buying a car on hire purchase, look at your options carefully, look at what it will cost to maintain the house or car. Remember when buying a house you have to pay for electricity, water, rates and taxes as well as your bond. Check if it would be cheaper to rent for a while, or to share a flat and then to save towards a place of your own.

When buying a car look at the cost of filling it with fuel, the cost of servicing it and buying things such as tyres and shocks and getting the exhaust fixed etc and work this all into a long term budget.