How does a woman build her financial independence when the game of life is so heavily stacked against her?
This is a question many professional women often struggle with despite high levels of intelligence and a good education. Today we will provide you with an array of financial strategies that may help you work towards achieving your financial independence. This advice will be general in nature so you should speak to a qualified financial adviser before acting on said advice.
Good money habits are an essential first step when you begin to work towards your financial independence and growing your wealth. Before you can begin to build any wealth, first you must master your behaviour to not only spend less than you earn, but also invest what you save.
By combining investing and saving, you can benefit from exponential growth of your savings potential. That being investment returns compounding on top of whatever savings you have so far, in addition to whatever extra you can save that year. This enables you to save more money faster so you can achieve your financial independence in a smaller timeframe.
In addition to this is the importance of superannuation. In Australia, there is a clear gap in super balances between men and women with an average difference ranging between 22% – 35% approaching retirement (KPMG). Owing itself to years outside of the workforce raising a family, less opportunity for career progression, and meaningful discrepancies between wages of men and women, women must increasingly focus on increasing their super balances to maintain their financial independence in retirement.
To do this it is often advised that some women contribute extra into their superannuation where the opportunity presents itself, to provide extra funds, and remove the requirement for assistance in retirement. This however isn’t the case for everyone, so it is advised you speak to your adviser first to discuss your circumstances.
To ensure you can keep the extra savings and investments you generate to work towards gaining your financial independence faster, it is also important you do so in a tax-efficient manner. With your goals and desired timeframes in mind, an adviser can help you do this this by designing a financial plan that ensures you don’t pay any unnecessary tax and keep your financial returns as your own.
If achieving your financial independence is a growing issue for you, you should consider speaking to our team who can help you remove the stress and anxiety around planning and building your financial independence. As specialists in providing advice to women we can help you understand your financial goals and construct a robust financial plan to ensure you get there.
Should you wish to take the first step you can speak to our team on (02) 9555 8188 or request a call back when it suits you best.
If you’d like to discuss your current situation or have any questions please contact us.
The information contained within this website does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances. Before purchasing any financial product, always consider the relevant Product Disclosure Statement (if applicable) which provides full details of risks, terms and conditions.
Some details (including names) have been modified for privacy purposes and assumptions have been applied regarding future interest rates, investment returns, the client’s circumstances and other financial and economic variables for illustrative purposes – actual outcomes may vary.
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