Seeking financial independence can be a daunting task: where do you start and what if you make mistakes that set you back even further?
There is an enormous amount of information out there and it can be difficult to understand what options and strategies are the right ones for you. Often, just the thought and confusion can be too overwhelming to begin taking control of your finances.
If You’re a Woman Wanting Financial Independence – Here’s How You Can Get Started
1. Start With A Budget
Detailing all of your household and personal expenses, within a spreadsheet, will help you analyse how much money you need to direct into everyday spending and major household bills. It will also often provide you with a surplus amount.
You can then direct the surplus amount into reducing your debts quicker and longer-term planning for your future. Separating your income into different accounts, to fund various expenses will help you stick to a longer-term strategy.
We call this the ‘Jar System’ our parents and grandparents used this system, when they got paid they put money into different jars to ensure they could pay all their bills and they could use what was leftover for discretionary items, these days we have online bank accounts that have replaced the ‘Jar System’
You may want to consider using a budget planner to help get you started.
2. Consider Debt Consolidation
This is where you consider if consolidating all your debts into one large debt is an option. However, you have to make sure that consolidating will actually save you money rather than cost you.
Consider the average interest rate you are currently paying versus the new interest rate, term of loans, and fees before making a decision – consolidating loans should only be an option if it improves your financial position.
3. Create an Emergency Fund
Directing a small amount of income into a separate emergency fund will help provide protection from unexpected expenses and financial crises. This money can help you deal with unforeseen expenses more effectively.
It’s important to save but to also separate income into different accounts to ensure balance and to achieve all of your financial objectives and goals.
4. Check How Your Superannuation Funds Are Being Invested
It’s important to understand your Super to ensure you are on track to achieve your retirement objectives.
Super funds offer a range of various investment options – from conservative to high growth.
Depending on your current stage in life and your investment preferences, investing in the wrong investment option could cost you greatly, ensuring you understand your options, and make informed decisions can be the difference between a comfortable, or stressful, retirement.
5. What Are Your Financial Goals?
Part of being financially secure means investing wisely to achieve your goals. These goals can range from ensuring you can fund all of your household and personal expenses, to being debt-free, or funding larger items like holidays, caravans, and upgrading cars.
Whatever your goal is, it’s important to know how much you need to save, implementing a financial strategy is the first step to achieving your financial goals, reviewing your strategy will help keep you on track, hold you accountable and help you stick to your plan.
6. Seek a Financial Adviser
Seeking expert advice from a trusted financial adviser can help you make informed financial decisions, they can instill you with confidence and guide you on the right track to help you achieve financial freedom.
The right financial adviser can tailor a financial plan to suit your specific needs and financial goals in life. They can also provide you with ongoing advice to keep you up-to-date with any significant industry and legislative changes that can potentially affect your financial situation.
If you want to achieve financial independence, wishing won’t make it happen, seeking the right advice is essential. You can start by making small changes to help you achieve your goals more quickly.
While building your wealth can feel very overwhelming, there are generally several steps involved, you can start with small steps and build on those steps as your knowledge and confidence grows.
Prominent Financial Services provides everyday Australians with financial success, satisfaction, and confidence through superior service, guidance, and education. We help you take control of your finances and obtain peace of mind. If you are looking for financial advice for women, get in touch with us! We’re excited to help you!
