There’s no doubt women face a range of unique financial challenges that impact their financial future. While strides have been made towards financial equality, the playing field still isn’t even. But who says we can’t level it ourselves?
“Financial empowerment is more than just gaining the knowledge, skills and confidence to manage finances effectively – it’s about making informed financial decisions, breaking barriers, setting new standards and paving the way for independence and security,” says Patricia Garcia from Your Vision Financial Solutions (yourvisionfinancial.com.au), a specialist who has these tips to empower women to secure their financial futures.
8 Financial Empowerment Tips for Women
1. Embrace digital cash flow tools
Gone are the days of manual budget tracking. By using cash flow apps you can easily track your income and expenses and identify where to cut back and save. How can you make informed decisions if you don’t know what you earn and what you spend in detail?
2. Build an emergency fund
Unexpected events don’t have to derail your financial stability. Building an emergency fund covering three to six months of living expenses will act as your financial safety net, ensuring you’re prepared for anything, from job loss to unforeseen bills and time off work due to sickness or injury.
3. Set financial goals
Dream big and set goals. Whether it’s a much-needed holiday, a new home or a secure retirement, start by breaking down your financial dreams into achievable milestones (short-term, medium-term and long-term financial goals) so you can stay motivated and focused on your financial journey.
4. Take out personal insurance
To protect yourself and your loved ones from unforeseen financial burdens, ensure you have adequate insurance coverage, including life, total and permanent disability, income protection and trauma.
5. Diversify investments and invest for the future
Knowledge is power, especially when it comes to investing. Educate yourself on investment options suitable for your risk tolerance and financial goals. If possible, consult with a financial adviser to assess your attitude towards risk, your need to take risk and your capacity to take risk. It is important to create an investment strategy that doesn’t put all your eggs in one basket.
6. Stay informed about tax changes
Tax regulations are constantly evolving. Staying informed about these changes can help you optimise your financial position. From maximising deductions to ensuring you’re compliant, being proactive about tax planning is very important to ensure you are taking advantage of all the strategies that can benefit you and are aligned with your goals.
7. Prioritise retirement planning
It’s never too early or too late to plan for retirement. Take an interest in your superannuation fund and get advice as to whether regular contributions are right for you. This allows you to leverage the power of compound interest and take advantage of a tax-effective structure, which can help ensure you are on track for a comfortable retirement.
8. Seek professional advice
When it comes to financial empowerment, you don’t have to face the journey alone. A financial adviser can offer insights and recommendations based on your unique financial situation, ensuring your strategies align with your personal and business goals. Ongoing advice is paramount, so make sure you find an adviser that is right for you and makes you feel comfortable.
For more from our financial freedom issue, pick up a copy of Woman’s Day – on sale now.
Your Vision Financial Solutions Pty Ltd ABN 64 650 296 478 and its Advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. The blog has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this article/blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs
