We will be honouring the Women in our society when we celebrate our National Women’s Day on the 9th of August and subsequently our National Women’s month. This provides us an opportunity to pay tribute to the generations of women whose struggles laid the foundations for the progress we have made in empowering women and achieving gender equality.
I will also be writing about some of these great women and the lessons they have taught us – and about the types of women we have in society, from Home Executives and the role they can play as income providers, to single Mothers and Entrepreneurs and the role they can play. So watch this space.
As a precursor to that, I would like to look at the foundation of wealth creation that every woman should know about to be breadwinners and wealth creation partners with their male counterparts, regardless of their marital status in later life. Yes, women can also build wealth with solid financial principles.
The lessons of the young
Many of us would have, as children, been receiving regular pocket money and encouraged to save at least a portion of it. From those early piggy bank days, the most valuable lesson of finance is taught and that is to spend less than you receive and put something away as savings. As we mature, we continue on this path of saving and to begin to set in motion the principle of wealth creation.
Budget with saving in mind
From day one, have a written budget that shows income and expenditure – always ensuring the former will exceed the latter so that at the end of every month some savings can be made. We need to always have an expenditure cushion to account for unexpected extras – another lesson that will serve you well in later life!
Save with investment in mind
Interest on savings earned in a bank account will barely align with inflation. The ultimate objective is for your money to be making money for you and the only way this is achieved is to invest your savings. This means partnering with a good Financial Advisor from the time you start earning. We assist with setting goals and investing savings so you earn money and save on taxes from day one.
Protect your wealth
The unexpected can happen at any stage of your life, so you and your income need to be protected. Little point in savings if these are to be eroded when you fall ill or are in an accident. Again, your Financial Advisor can assist you to set up the right income protection products like medical aid, income protection, dread disease cover etc, all within your budget and aligned with your needs.
Look to the future
A primary lesson of wealth creation is that time is like gold, and so we encourage women (and men) to use their youth to their advantage. Compound interest earned on long-term savings is astounding and will set you up for an early retirement and create a legacy that you will be proud to leave your family. On that note, you will also need to have a Will in place as soon as you have anything to leave to someone and your Financial Advisor can assist with that too.
Let me help
All these simple principles form a part of the Quintus Wealth Five key milestones to financial well-being. These include wealth foundation, growth, accumulation, protection and distribution. Of course, there is much more to these principles than those set out in this article so do talk to me about your specific wealth aspirations and let’s immediately get you on the right path to wealth creation. I hope this has been helpful and convinced you that women can build wealth with solid financial principles!