A man is not a financial plan

Public Relations Company

MEDIA RELEASE 20 May 2010

A man is not a financial plan
40 years on from legislated equal pay, women still earn on average 17 per cent less than men. In addition, a woman will on average spend less time in paid work and have less superannuation in retirement than her male counterpart. She will also outlive him by seven years.

All this means that women have very different financial issues to consider and need to work smarter with their finances.

However, women also have distinct advantages when it comes to financial wellbeing:

They typically take the time to consider all their options - they discuss the details of possible consequences and gain a really clear understanding of the potential outcomes
They are more organised - they know what they want and where they see themselves in the future
They are committed and patient with their investments.

What is important for women is to learn to make money one of their top priorities and consider their own finances in the same way they would look at their business' finances. If we master our own cashflow, we can build wealth.

So where do I start?
The first step in planning your financial future is to be clear on your goals and desired outcomes. You have to know exactly where you want to go.

Then you need to understand your current financial position. Have a look at your budget to have a good picture of what resources you can tap into.

Following this, it's a matter of having the right strategies in place, managing the risks and reviewing your financial plan regularly to stay on track. Our lives change constantly so it's important to keep our strategies up-to-date and relevant.

It's very much a step-by-step process. You can't expect to become independently wealthy overnight. It takes discipline, commitment and patience. I realised when I was in my early 20s that I needed to be responsible for my financial future. I bought my first property when I was 23 and now have a portfolio of investments that includes a number of properties as well as other investments. It's a question of balance.

A successful example
40-year-old Dr Cate Madill, a university lecturer who runs a private speech pathology practice, said she realised in her late 30s that she had to become more proactive with her finances. She came to us in February 2009 to get her plans on track.

"I was mindful that I had to become financially stable and independent so that I would not have to worry about it later in life. I couldn't just sit and wait," Cate explained.

"If we want to be able to do the things we want to do and follow our own path in life, we need to be proactive with our finances. We can't assume that someone else will be there to look after us.

"I'm in a relatively young position financially as I'm still 25 years away from retirement. So it can be a little scary to take some risks, but with a well-managed profile and a clear plan of action, it is possible to start building wealth.

"What is also important when planning my finances is to understand the choices I have with the associated benefits and shortcomings so I can make better decisions. So I sometimes attend my financial planner's information sessions on various topics. I can't predict the future, but I can make an educated guess.

"I'm in a completely different position financially than I was 18 months ago. A side effect of having my own financial growth planned is that it has helped me to change my expectations of an intimate relationship which doesn't have to be based around financial dependence anymore.

"I also have the peace of mind knowing that there is a whole team behind me to support and educate my decisions," Cate added.

The author
Sunshine Estivo is a Certified Financial Planner with 10 years experience. She is the owner and managing director of financial advisory group Omniwealth. Sunshine is passionate about empowering women to become more financially savvy. For more information on Omniwealth, visit www.omniwealth.com.au or call 02 9112 4300.

03 September
Komatsu Forklift Australia Leverages Polycom HD Telepresence to Reduce Travel Costs and Increase Workplace Efficiencies
02 September
World's fastest growing 24-hour fitness club seeks Australian franchisees
01 September
World's fastest growing 24-hour fitness club seeks NZ franchisees
30 August
North Sydney high-rise to recycle three million litres of water per year
25 August
Local artist wins 2nd and 3rd place at EKKA
24 August
Anytime Fitness bringing 24 hour gym concept to Sydenham locals

More Media Releases >>