Financial advice is financial advice regardless of whether you are male or female. It’s not gender specific, but what may be different is the approach women want and things we need to consider for them.
In our experience at Magenta. women come to us when they have either had experience elsewhere and felt they weren’t taken seriously, didn’t feel listened to or were bamboozled with financial jargon.
Generally, the shape and pace of a woman’s financial life can be different from a man’s, on average they display different financial behaviours, and women can face a combination of different pressures on their finances, both from society in general and personal circumstances.
At Magenta we love working with women and seeing them feel more empowered to make great decisions in their lives!
This blog provides 5 top financial planning tips to get you started
Plan, plan, plan!
You will never get to where you want to be without knowing how you are going to get there, but it is important to think about the lifestyle you want to live and its associated cost, BEFORE you start making financial arrangements.
Many people buy savings plans and make investments without considering how much they will need in the future and when.
Consequently, such arrangements may be inappropriate – maybe taking too much or too little risk, inadequate savings amounts, inflexible policies etc.
When you have made a robust plan for your future, you can them determine what you need to do to realise it more effectively.
It is important to remember that you don’t have to be wealthy to create a financial plan. Everyone has to start somewhere, but where you end up, is determined by the plans you make and how you implement them.
Thinking about the points raised above, it is important to start saving as soon as possible. It is not too soon (or too late).
If your employer offers a pension, make sure you are in it. If you’re self-employed, consider the options for contributing, either regularly or annually and be sure you are educated on the annual income limits and other specifications for these so you don’t make expensive mistakes.
we don’t just want to save for retirement!
We want to save for holidays, new shoes, a nice meal with friends etc.
Don’t be tempted to put these things on credit cards with sky high interest rates which mean that the cost of your treat has exploded.
Instead, make good use of banking apps like Starling or Monzo to set yourself savings goals and limits
Take control of your (and your family) finances, or work with your partner on this.
Do not fall into the trap that sadly many women do, of letting their partner (usually the man) deal with the finances.
It is important that everyone can be financially independent just in case something goes wrong – divorce, premature death etc.
Unfortunately, we have a great deal of experience in working with surprised divorcees and bereaved widows who have little clue about the family financial situation. It is important to know where money is held, who insures the house and car and any passwords allowing access to funds.
Cover the Risks
No one likes to pay insurance premiums if they can help it, but in the same way that we insure our cars and houses, we should also insure our lives and health and income if we can afford to do so.
If we don’t, and things go wrong, our hopes and dreams for the future could be shattered and our financial plan will be rendered meaningless.
It’s important to review insurance, such as life cover, income protection and health insurance as your life changes.
By protecting yourself in advance, you are also protecting your finances and, in turn, your future.
Make sure beneficiary designations are correct and up to date.
This applies for any pensions you have and for your Will.
If you don’t have a Will, then make sure you do this too!
If you die without leaving a valid will, your estate must be shared out according to certain rules.
These are called the rules of intestacy. Only married or civil partners, children and some other close relatives can inherit under the rules of intestacy.
So it’s best to have a will, so you know the people you want to benefit will receive anything you leave behind. This is particularly important if you have divorced or are unmarried.
In conclusion, while planning is important for everyone, women have special considerations to make.
Those looking to make the most of their financial futures shouldn’t let the challenges they face hold them back from getting on track toward their best lives.
Financial planning — whether solo or with the assistance of a professional can make a significant difference.
If decide you want to work with a financial planner, do call us for a chat – we understand the financial ambitions and concerns of women and will work with you to make sure you are comfortable and well-informed.
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