5 financial planning tips for women.
Financial planning for women can be difficult for a variety of reasons. Some women are more likely to be insecure about their financial situation, and overwhelm by all the opportunities out there. Women can find themselves feeling powerless over their finances as they look at the big picture of everything they need to accomplish. They may see it as something so daunting that they don’t have time or energy to deal with it right now, so a lack of action seems like an easier option than tackling this overwhelming task head on.
There is a need to shift the focus from women only being viewed as caregivers, housewives and mothers to viewing them as equal members of society. This is due to the fact that women are now more likely to have a career and have a higher earning potential. The quality of life for women can be improved by changing their perception of themselves and the financial choices they make. Women can be financially independent, just like men – it IS possible.
By developing financial security, women can curb anxiety and depression. When financial security exists, you can create your own choices. You can choose whether you want to stay in the same job or take a short career break before one jumps into the next available opportunity, leave an abusive marriage, get married, buy your first property, give your children an opportunity to explore art classes, go for the pilates class to strengthen your body after labour and much more.
Everything starts with money.
In this section, we will be sharing financial planning tips for women so that you can make fulfilling financial decisions for yourselves. A woman’s budget should be created at least once per year, reviewed monthly especially when you foresee an economic change in your life such as illness, unemployment, marriage, divorce or death of a loved one.
Financial planning tips for women #1
Growing up wasn’t easy for some of us. The pressure was immense. Some women were constantly fighting to meet the expectations of others, while trying to live up to our own, narrow vision of what it means to be successful, beautiful and happy.
Our upbringing played a role in the way we manage our finances today. Those who do well today may spend more to overcompensate for what one lack in the past. This is our way of bringing balance back into our world. Rewards work for a reason, but over-rewarding yourself may come at a price.
It is important to acknowledge what matters most to you, like good education, a car that functions properly and a comfortable home. Just don’t overdo it because it can be harder to crawl out of debt.
Some of our clients continue to work with a life coach or therapist to understand themselves better. This is where we found some interesting revelation about why our clients overspend and can’t seem to save. Everything stemmed from their past, so it is vital that you address your past while you work on your present with us as your Financial Planner.
Financial planning tips for women #2
Have a separate emergency account under your own individual name.
It is important to set up an emergency account where you deposit the money and take required steps for the fund to be liquidated quickly in case of emergency. This account should not be in your current bank account. You can consider Tabung Haji, ASB, money market funds and fixed income funds (less preferred as some can have minimal volatility). Avoid sharing the emergency account with anyone including your partner, he should have his own.
Financial planning tips for women #3
Take a financial literacy course to understand money better during your leisure time. Check out our DIY personal finance course – it will teach you the world of personal finance and give you an idea of what financial solutions and strategies you could opt for your future.
Our course runs for eight hours virtually, and the course is yours to keep forever.
Financial planning tips for women #4
You should subscribe to a comprehensive medical protection plan as early as possible for two reasons:
- When you’re younger, plans tend to be way cheaper
- When you’re younger, you’re healthier which makes your plan cheaper
If you don’t have adequate insurance or takaful coverage, you could experience a number of potential problems such as medical debt or damaged credit in the event of you being hospitalised or hit with a hefty medical bill. This can take a toll on your financial well-being.
When it comes to insurance or takaful coverage, it is important to understand the types of coverage that are typically offered in the market. We have reviewed many insurance and takaful coverage for our clients and found many redundancies and duplications. In the end, our clients have to purchase newer plans to cover what they are not covered for.
Financial planning tips for women #5
In today’s era where everything is made available on social media and Google, you don’t want to leave your finances to this, eventhough you can. If you have the time and literacy, then why not.
If you don’t have the time, then we’d recommend you to implement tips #1 to #4. While you’re at it, to accelerate your planning, consider working with a professional like us to build your financial plan.
In our 1 to 1 financial planning programme, we will review all of your financial situations and concerns. Plans and strategies will be developed according to your comfort level and preference. After a series of discussion, you will walk away with a holistic financial plan tailored to your specific goals and needs.
Our role as a Licensed Financial Planner and Licensed Islamic Financial Planner will give you the advantage of reviewing all that is available in the market, before you settle for what’s right for you.
We want to change the status quo by educating more women about how empowering it can be when you take responsibility for your financial future. Connect with us today to claim your power and plan for your finances at your own terms.