For many women achieving financial independence can be a concern for many reasons. It’s commonly known that we earn less than men, take more time out of the work force to have children and also statistically, we live longer. Australian women also retire with 37% less super than men (Aust. Bureau of Statistics).
So many of us, regardless of age, let our husbands or partners make all the financial decisions. A recent study from UBS Global Wealth Management, found that a massive 58 percent of women leave important financial decisions up to their male partners. This situation can leave us at risk particularly if divorce occurs, our partner dies or there is a serious illness. This is not the way to achieve financial independence!
When I got married, I had savings and bought all the furniture and the car. I also worked and supported my husband while he finished his law degree. Now we are divorced, I have nothing! (female friend)
This story is very common. With stars in your eyes and thoughts of ‘happily-ever-after’, who wants to get down to the nitty gritty reality of money discussions when you start a serious relationship?
But ladies, the time has come for us to take back our control. If we are going to achieve financial independence for women, there are a few steps that must be taken:
1. Earn Your Own Money
Unless you have inherited wealth, it is impossible to achieve financial independence if you don’t have your own income. I know this is easier said than done especially if you have small children. But no matter how difficult it is, you need to earn your own money if you want financial independence. Keep your foot in the door if you take time off to have children so you can work some hours from home or even go back part time. Money can be earned online through affiliate marketing, selling products or services, direct sales or a myriad of other opportunities. Be cautious though, and do your research first!
2. Have Your Own Bank Account
You can still have a joint account if you and your partner decide that is the best way to proceed but I still think you need to have your own separate account as well. That way you have total control over what you do with it. You may even be able to whittle some of it away for some investments when the time is right. This is your emergency fund if you should ever need it.
3. Be Involved in Financial Decisions
This is for those of you with partners – of course the single ladies don’t have to refer to anyone else about their finances. It’s so easy if one partner is more dominant just letting them make the financial decisions, but don’t take the back seat no matter how little you know. Start learning and get involved in the decision making. If that isn’t how it’s been in the past, it’s time to make the change.
4. Understand Your Superannuation
If you have been running your own business or you work online, you may not have even started a superannuation account. It’s never too late. Recent changes allow most Australians who are eligible to contribute to super, to now claim a tax deduction for their personal super contributions made using after-tax money. Do some research and talk to your accountant about how much you need to be transferring. Also do some research into the top paying super funds, their insurances, and their investments. If you are concerned with Climate Change and ethical investing, put your money where your mouth is. If enough people start to do this, our politicians will soon get the message as well as the other super funds.
I always thought I would have a comfortable life but after my separation from my partner and then getting cancer, I couldn’t work. I lost the house and almost ended up homeless. I’m an educated women, how did this happen to me? (female friend)
5. Teach Your Daughters
Even if it hasn’t been the case for you, make sure your daughters have all the knowledge to have financial independence. Talk to them about their finances once they are old enough and give them the confidence to manage their own finances responsibly. Having financial independence is imperative for women of all ages. For many of us who have or are experiencing problems financially, vow to never allow your daughters to be in the same situation. This is for the men with daughters as well. Bring your children up to understand the dangers of women not being financially independent.
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It’s never too late. I honestly believe we as women have the power to change so much for the good of this world. We just need to start taking responsibility for ourselves first so that we are secure and then we can help each other.
Start Today – It’s Never Too Late!
If we are to achieve financial independence for women, we have to step up and start today whether you are single or in a relationship. You never know what is around the corner and circumstances can change over night. There are more and more older women ending up homeless due to unforeseen circumstances and also domestic violence.
Take control of your finances and help achieve financial independence for all women. Learning to market properly so that you have control over your cashflow is one of the best things you can do to ensure you are always financial stable.
If you’d like to ‘earn while you sleep’ which means set yourself up for residual income, register here and get in touch with me. Looking forward to working with you.
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