Anakadzi Banking And Wealth Creation

Wealth creation is a subject that every woman should be thinking about and acting on.

While most women are conscious about having financial goals and the need to implement retirement saving, many are not making key decisions about long-term savings and wealth creation. Research conducted by Prudential in its 2014/2015 research study on Financial Experience & Behaviours among Women shows that while the women surveyed are aware of their long-term goals, they still lack familiarity with the financial products and instruments available to them. The study also found that women’s confidence in their ability to achieve their financial goals has not improved in the past 10 years, nor were they likely to seek out a financial adviser to help them reach their goals.

Many women are more confident about their ability to manage their day-to-day finances than they are when it comes to long-term planning. You have to start somewhere, though, and these tips can help:

Start with what you know

Draw up a monthly budget and list all your expenses: fixed expenses (e.g. bond/rent, insurance etc.) and your variables (groceries, transport, cellphone, entertainment etc.). Don’t forget to add those occasional expenses like car services and home repairs. If you’re spending more than you earn, it’s time to slash your costs.

Now pay off debt

List your expenses in order of importance, and cut those that are not essential. Do you really need a Take away lunch every day? Not when that ZMK20 could be paying off debt.

Now that you’ve reduced your spending, start reducing your debt, especially credit and store cards, which attract very high interest. As soon as you’ve paid off one card, move onto the next.

Think ahead

Once you’ve dealt with your debt, start an emergency fund. One month’s salary would be a good start.

Invest some money each month towards longer-term goals such as retirement funding or your children’s education.

Remember that a financial advisor can assist you in setting achievable financial goals.

How can a financial advisor assist?

“A financial planner will look at two goals – short term and long-term wealth building,” explains bank senior planner: wealth Gloria Estanqueiro. “Financial planning is not about earning a lot of money, it’s about what you earn and how you plan your life,” she says. Financial planners have the expertise and tools at their disposal to make sure all aspects of your financial fitness are assessed and then addressed holistically, she says. In-house, Standard Bank Financial Consultancy is one of the most highly regarded financial planning teams in the industry.