Ladies, it’s time to take control!

Elise Ryan is an Authorised Representative, GWM Adviser Services Limited, Australian Financial Services Licensee

I was reading an article entitled ‘More women will end up alone and managing their own money’ by Georgina Dent in The Age¹ and was astounded at the lack of confidence women have in their abilities.

It really struck a cord with me and I was trying to work out why and I think a quote from the article summed it up quite nicely

 

“women not only underestimate their own capabilities but they overestimate what is required to be financially involved.”

 

You shouldn’t need a man or spouse to provide you with a sense of financial security, your knowledge and understanding of your finances should be all the security you need. It can be as simple as understanding where your money is going and track your expenditures, it isn’t even hard these days you can do it on an app on your phone.

It is common in a relationship for one person to take the lead with the finances, like with a lot of household tasks. However, you are a partnership and should have an understanding of what is going on and not just leave it up to the other person so there are no surprises as to your financial position.

It is interesting that this trend is not changing with millennials, with the greater focus on women’s independence there is no trend in women stepping up and taking control of the finances, they are behaving quite primitively.

My experience from growing up is that the overall finances was a team effort. My Mum did the grunt work of paying the bills and banking but both Mum and Dad together with their Financial Advisor would look at the strategic side of things.

My relationship with my Fiancé is no different. James is happy for me to look after the day to day but he wants to be involved with the long term strategic planning.

Women should be paying more attention. We live longer, tend to have more gaps in employment and average lower pay throughout our careers.

This means that at some point in time we will need to be the ones in control and making the decisions.

Don’t know where to start, book an appointment with a Financial Advisor, find someone you can trust and identify with. They should help educate you and not make you feel dumb or silly for asking questions. Worrying about how much advice will cost or thinking that you don’t have enough money shouldn’t be a barrier for booking an appointment.

 

¹ The Age 17/06/2018, More women will end up alone and managing their own money, Georgina Dent.

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product. Past performance is not a reliable guide to future returns. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way
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Who is making your Financial Decisions?

In January 2018, women marched in all 50 American States, in 92 Countries, on all 7 continents in protest of the policies and positions of the Trump administration. Women worldwide are channelling their energies to articulate their right to take up equal opportunities, with respect, safety and dignity. Women worldwide are becoming outspoken and active political participants.

The #metoo movement has broadened the global dialogue on the widespread prevalence of violence and sexual assault. Women are demanding accountability and beginning provocative conversations. Women are becoming more outspoken, more educated, and the opinions of women are being represented politically and socially. Women are becoming publicly progressive in their endeavour for gender equality.

In light of the current political and social climate, I was surprised to read in an article published in the Sydney Morning Herald by Georgina Dent, where Financial Coach Julia Sotas stated that ‘56% of married women leave investment and financial decisions to their husbands…because they believe their husbands know more’.¹ In a world where women are progressive, and willing to actively participate in the global political and social dialogue of gender equality, it is interesting that women still believe that they are incapable of making investment and financial decisions.

In your partnership is your partner taking control of your financial future?
Curious to discover what motivates financial decisions of the women around me, whether they be married, in defacto relationships or single, I decided to ask some questions. I am overwhelmed by the responses I received from these educated and determined women. There is a trend, indistinguishable from cultural traditions, that most women are influenced financially by the men in their lives.
Empowered and progressive women, I urge you to become eager for not only political but also financial freedom. I urge you to take up equal opportunities and to stop underestimating your capabilities to manage your investment and financial decisions. It is time to become financially aware, involved and secure.

 

At Income Solutions we run regular Income Solutions for Women seminars. If you would like to register for an upcoming event please contact us or go to www.incomesolutions.com.au/events for more information.

 

  1. Dent, G. (2018). More women will end up alone and managing their own money. Sydney Morning Herald. [online] Available at: https://wwwsmh.com.au/money/investing/more-women-will-end-up-along-and-managing-their-money-by-themselves-20180614-p4zlfy.html [Accessed 3 Aug. 2018]
Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product. Past performance is not a reliable guide to future returns. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way
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Do you want it? Or do you need it?

Even those of us who have been paragons of responsibility for 51 weeks of the year can be tempted to take a budgeting holiday when holidays roll around. Unlike overindulging at the Christmas lunch, this has more than short-term consequences.

Last December, Australians spent $25.6 billion in retail stores. A survey conducted at the time by peer-to-peer lender SocietyOne found shoppers planned to put over half the cost of the presents they bought on credit or store cards. SocietyOne’s research also found that while shoppers believed they’d pay off their festive splurge by April, most actually wouldn’t.

If you don’t want a painful debt hangover, it’s worth taking a moment to sort your needs from your wants. Separating wants from needs can be one of the toughest aspects of budgeting, particularly around the festive season.

Needs are not the same as wants

The line between needs and wants can be a little blurry but a good rule is to ask yourself ‘Do I absolutely need to have this?’ If the answer is no you’ve probably identified a want.

You may want to serve French Champagne at your Christmas lunch but you don’t need to. Nobody’s suggesting you shouldn’t splash out, but your lunch guests are likely to be more than satisfied with a sparkling wine. You don’t need to spend money you don’t have on extravagant gifts and entertaining to express your love for, or try to impress, friends and family.

This is no time to take a budgeting holiday

Your wants are very much driven by emotion. We all want to shower the people we love with gifts, an abundance of food and other treats. However this can lead to impulse spending we did not originally plan for. Focus on the essentials and plan how much you’re going to spend before you head to the shosps then stick to that budget once you get there.

Avoid buying now, paying much more later

Just because you want something but don’t need it doesn’t mean you shouldn’t buy it. Make sure you’ve got enough to cover your needs or basic day to day expenses, then with what’s left over, prioritise your wants.

It’s also important to consider how you are paying for the little luxuries. Watch out for the temptation to put them on credit. The average credit card balance is $3,130 with interest being paid on $1936 of that amount. The amount of interest varies, but at a time when interest rates are at unprecedented lows, Australian credit card users typically pay 10-15 per cent interest. The interest rate for most store cards hovers around 20 per cent.

Credit cards are not even necessarily the most expensive form of retail debt. If you enter into one of those ‘pay nothing for 6, 12, 18 or 36 months’ deals you’ll be looking at a much higher interest rate once the interest-free period ends.

A more recent market entrant called Afterpay – a type of reverse layby where you get the product now and pay it off afterward – has rapidly gained traction in Australia. A big part of Afterpay’s appeal is that no interest is charged on the amount owed. But fees are levied if repayments aren’t made so it’s possible to end up paying $68 in fees on a $100 purchase.

Avoiding debt

The simplest way to avoid pricey debt is to avoid spending money you don’t have. Wherever possible, limit yourself to using lay-by, cash or a debit card to cover holiday expenses.

With a bit of planning you can manage to take care of your day to day needs and still afford some luxuries – without copping the credit card hangover.

 

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Before making a decision to acquire a financial product, you should obtain and read the Product Disclosure Statement (PDS) relating to that product. Past performance is not a reliable guide to future returns. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.
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