Planning your finances can be a daunting task and it’s easy to put it to the back of your mind to deal with on another day. Let’s face it there are far more exciting and interesting things to be doing today and more immediate plans to be made. However, financial planning has never been more important for all of us, least of all women. From my experience in financial planning over the last 20 years, here are a few reasons, why it’s important to get a grip on your personal finances.
1. Do not rely on your husband to plan your financial future – Too often I hear that women are very reliant upon their partner for their future financial security. Sure many women may run the day to day finances, but often leave the real long term planning to their other half. It’s much better to plan your own financial security rather than leave it to someone else.
2. Women statistically live 4 to 5 years longer than men – It’s a simple fact that women live longer than men. And if you are a little younger than your partner it’s quite possible to be living up to 10 years longer than your partner. If you are reliant on your partner’s pensions and savings this may be a problem.
3. Women statistically earn less than men – This is another simple fact, whether we like it or not. Because women have career breaks to raise children they are often left behind when it comes to life time earnings. So it’s even more important to take control of your finances and to be wise with your money.
4. Invest in your financial education – Personal finance can be a complicated subject, but it doesn’t have to be. My “golden rule” is if you don’t understand it, don’t do it. However, to make the best of your money, it’s important to get yourself educated. There is no need to get too complicated, as for most people, keeping things simple is the best option.
5. Approximately 50% of UK wealth is owned by women – Despite the fact that women generally earn less during their working lives, they still own almost 50% of all UK wealth. The reasons for this are primarily for 2 reasons. Firstly, most women outlive their partners and usually inherit the assets. Secondly, divorce has a part to play in the accumulation of wealth for women.
6. Avoid the urge to spend – This is a tough one for all of us, as we are all capable of pending when we don’t really need to. Ask yourself, do I really need to be spending, or would I be better off in the long term investing for my future.
7. Plan for your retirement – Finally, it’s s simple fact that the state cannot look after us in retirement I the way which we would like. There is approximately 65% of retirees who are reliant on the State Pension in retirement. Don’t be one of those people, if you want a comfortable enjoyable retirement.
Get your finances on track today by speaking to a financial adviser. We offer financial planning advice to business owners who wish to have greater control over their financial affairs. Check out our About You page to see whether our services are right for you.
