Date with your finances

Written by Medupi Lamola
Thursday, 07 July 2011 16:56

order="0" align="left" />How often do you make a date with your finances? Do you know exactly where you stand financially? If you do not know, it is about time you start engaging your finances to assess how best you can make your hard-earned cash work for you. With personal financial planning, you can manage your income and expenses and become aware of your current financial status. Personal finance is your roadmap to financial health and sustainable wealth creation, so do not ignore this critical part in your life.


In this column, we take a critical look at how women approach their personal money matters. For obvious reasons, women have financial needs that differ from those of their male counterparts. Women of today do not perceive themselves as their equivalents of the older generation. “Women are no longer brought up with an idea of their future, reliant on their male counterparts, while they simply focus on being mothers and wives. They are increasingly becoming breadwinners in many households,” says Hazel Glajchen, a Momentum Executive Financial Planner.


“Statistical information shows that on average, women live longer than men. It is vital that women plan financially for their present day needs and develop a plan that will accommodate their future years without being dependent,” says Hazel. "Despite the fact that most women earn less than their male counterparts, they generally need a larger pool of savings to sustain a lifestyle of their choice. As such, creating a plan by setting objectives and monitoring progression towards attaining financial aspirations, remains a non-negotiable".


Hazel says that a well structured financial plan is a tool that makes sure that the right amount of money is available at the right time in the future to achieve your financial goals. While it is important that women carefully manage their income and expenses, it is of great importance that you use the services of an accredited financial planner. If you do not have one, it is essential to find an accredited financial planner to help you to map your way to financial independence. “It is important that you have a financial coach in order to  understand ,amongst other things, your risk profile and the potential return on your investments and future income needs based on the decisions you make now. It is essential that you are given tools to make informed decisions in order  to protect you from life’s uncertainties”, she adds.


Dating your money matters remains crucial to building a better life for you. So, do not wait until it is too late to start. Take that step to educate yourself about your finances. It will probably be the most rewarding decisions of your life.


Financial tips from Hazel


1. Take stock of your financial position to plan your future
2. Identify your life goals and prioritise them
3. Calculate the amount of money you need to attain these goals, taking inflation ,your time horizon and appetite for risk into account
4. Have an emergency fund of 3 to 6 months income available
5. Settle debt as quickly as possible
6. Get expert advice on how you can  achieve 'real' returns that keep pace with or beat  inflation
7. Keep revisiting your financial plan to review your progress