Break Your Financial Barriers in 2019
Why is it that so many women still feel uncomfortable discussing their financial matters even though they are running a business and/or their family households whilst also making many day-to-day purchases and budgeting decisions?
Ironically, 90 percent of women will be solely responsible for their finances at some point in their lives whether as entrepreneurs running their own businesses, being single, experiencing divorce or simply living longer than men.
Research has shown that women tend to take the meaning of money beyond purchasing power into security, caring for their families and other “larger than life” ideas that make money more frightening to think about! Women don’t want a different savings/investments portfolio than men; they want a different savings/investments experience. There is an emotional side to personal finance that many women feel is not understood by their adviser.
What’s the Solution?
Tip 1: Tailored Financial Planning
We are all aware of the dangers of using the internet and media to diagnose medical conditions and the world of financial advice suffers from the same issue. Importantly, there is no ‘one-size-fits-all’ strategy and financial advice is, and always should be tailored to your personal circumstances and takes into account other factors such as your current and future objectives and tax/economic considerations.
Here I will talk about how to put the past behind you and begin to make smart choices to secure your financial future.
Tip 2: Engage a financial professional
Someone who is not just a glorified salesperson who will leave you down the line, but someone who will hold your hand in your financial journey and become your trusted financial professional in the same way you would develop a relationship with an accountant or solicitor. A Financial Planner with the CFP (Chartered Financial Planner) designation has satisfied rigorous criteria relating to professional qualifications and adhere to a specific Code of Ethics thereby ensuring that they always act in the best interest of clients. It means you can be confident you are dealing with someone who is committed to providing you with the best possible advice, service and support throughout your various life stages. Women who use financial advisers are more than twice as likely to consider themselves ‘on-track’ with regards to their financial planning.
Tip 3: Set your Financial Goals
Rank them in terms of priority and timescale. Be SMART in your goals (Specific, Measurable, Attainable, Realistic and Timely).
Tip 4: Budget/Cash Flows
Look at your budget and decide what is a "want" and what is a "need". Look to the "wants" area for savings/investments. Similarly, look at what you consider "needs", and ask yourself if they are truly needs. Careful budgeting and prudent spending will help you keep more of and grow your hard-earned cash.
Tip 5: Start paying yourself first
Women tend to meet all other obligations and/or put other people’s needs in front of their own. Prioritising your own savings/investment needs is an integral part of financial fitness.
Tip 6: Assets and Liabilities
A nice 'cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of your assets. The knowledge of settling or canceling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future.
Tip 7: Yours/Family Security
Providing for you and your family's financial security is an important part of the financial planning process. Having the proper protection and policies in place can provide peace of mind for you and your loved ones.
Tip 8: Tailored Financial Plan
Your Expert Financial planner will look at the steps that would be appropriate in your personal circumstances in the context of your goals. It’s a service that can add value and help give you peace of mind. You’ll be able to understand how your finances will be affected by different scenarios. Financial planning isn’t just about the end figures. It puts you at the centre of a financial plan and aims to create a strategy that allows you to achieve your aspirations. Your goals should have a huge influence on the financial decisions you make, after all, that’s what you’ve been working and saving for. A goal of retiring on a comfortable income at 55 will need a very different strategy to someone who wants to provide financial support to children in a few years’ time.
Tip 9: Implementation and Ongoing reviews/Advice
After the implementation of your financial plans, an expert Financial Planner will always carry out ongoing reviews/advice that will not only help you continuously put your finances in perspective but will also ensure you are on track to achieve your financial dreams.
How do you manage your finances? Share your tips in the comments.
Guest Blog by Merit cLUB MEMBER: Kausar Sahab
Being among the 900 Female Chartered Financial Planners in UK, I understand the need to acquire both professional and emotional intelligence to be able to provide the highest level of service and tailored solutions to female clients so they could overcome the barriers that have limited their financial success. My mission is to assist them to be financially empowered and support them in their financial journey committed to building/preserving their wealth.
If you are ready to take your financial future in hand, please feel free to contact me for a no-obligation/complimentary meeting.