MANAGING THE MONEY AT DIFFERENT STAGES OF A WOMAN'S LIFE, PART 2
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GRA Blogs
Articles by The Professional Trustee Team
This is the second of two blogs on managing the money at different stages of a woman's life - you can read part one here.
SINGLE AT 35
Frequently, from the age of 25 through to 35 our earning capacities increase. Regrettably, so do our expenditures unless we keep a tight hold of the drawstrings of our purses.
One thing that can contain our spending is the focusing on a particular goal. For those in this age group, purchasing a home is often top of their 101 lists of things to do. This is where Mr 10% and KiwiSaver (as mentioned) come into play.
Having a home means different things to different people. It can represent certainty and security. Knowing the roof over your own head is yours and you are not at the mercy of a landlord, can instil a degree of confidence and a sense of peace. It can also be a big wealth creation leverage tool to help you into retirement.
Unfortunately, there are many women who do achieve homeownership only to lose it in creditor or relationship battles. To avoid this occurring, hold you home in a trust. It's a fabulous asset protection device. If a bad day ever comes raining on your parade, you'll be thankful you've observed this advice.
If you're having difficulty residing in home ownership lane and implementing asset protection goals, seek out some professional, independent help. A little knowledge often makes something that's hard easy, or at very least, easier than it would otherwise be.
Once you've got your place of abode, concentrate on paying down your mortgage debt. There are particular ways you can make a mortgage debt work for you and speed up the repayment process. Find out about this as it will unquestionably be of benefit to you.
You should also continue creating your money reservoir account. Life doesn't come in little Tiffany boxes with cute bows on it, and emergencies can and do occur. Having funds in your reservoir account avoids financial upheaval when those unexpected bills hit. Additionally, continue paying into your KiwiSaver. That you will retire is a pretty high certainty, and having fun to do what you want at retirement will require you to put the pennies and pounds away now. Finally, don't forget Mr 10%. He still needs feeding and though you may not be stashing away as much as you did before you obtained a mortgage, some degree of savings should be continued. Paying attention to these three things will help you handle any financial humps and bumps you encounter and will also pave the way for your retirement.
Another tool to help deal with the unexpected and reach financial retirement comfortably is insurance. The right product at the right price will give you the right peace of mind. Insurance is something that is not only beneficial but also essential if you want to protect your current standard of living and the lifestyle you intend to enjoy in the future.
Talking of benefits, a close romantic relationship can most certainly be beneficially to us all. The majority of women grow up with the view they'll eventually meet their Prince Charming and build a life together. Every gal needs to note, however, that a man is not a wealth and superannuation plan. Sure your relationship may be built on sharing and trust, but events can transpire which change the nature of your romantic connection to the point where it becomes little more than a legal contract. Pay heed. Recognise your marriage/de-facto is not a cast-iron guarantee and warranty for financial security and happiness. For this reason, Rule 2 (money and assets, as mentioned in my previous blog) should be practiced. If all remains well in Paradise, you'll be financially stronger as a couple if you are personally money savvy and independent. If on the other hand, the worst transpires and you end up in Splits Ville, you'll be able to stand on your own two financial feet.
Having a home means different things to different people. It can represent certainty and security. Knowing the roof over your own head is yours and you are not at the mercy of a landlord, can instil a degree of confidence and a sense of peace. It can also be a big wealth creation leverage tool to help you into retirement.
Unfortunately, there are many women who do achieve homeownership only to lose it in creditor or relationship battles. To avoid this occurring, hold you home in a trust. It's a fabulous asset protection device. If a bad day ever comes raining on your parade, you'll be thankful you've observed this advice.
If you're having difficulty residing in home ownership lane and implementing asset protection goals, seek out some professional, independent help. A little knowledge often makes something that's hard easy, or at very least, easier than it would otherwise be.
Once you've got your place of abode, concentrate on paying down your mortgage debt. There are particular ways you can make a mortgage debt work for you and speed up the repayment process. Find out about this as it will unquestionably be of benefit to you.
You should also continue creating your money reservoir account. Life doesn't come in little Tiffany boxes with cute bows on it, and emergencies can and do occur. Having funds in your reservoir account avoids financial upheaval when those unexpected bills hit. Additionally, continue paying into your KiwiSaver. That you will retire is a pretty high certainty, and having fun to do what you want at retirement will require you to put the pennies and pounds away now. Finally, don't forget Mr 10%. He still needs feeding and though you may not be stashing away as much as you did before you obtained a mortgage, some degree of savings should be continued. Paying attention to these three things will help you handle any financial humps and bumps you encounter and will also pave the way for your retirement.
Another tool to help deal with the unexpected and reach financial retirement comfortably is insurance. The right product at the right price will give you the right peace of mind. Insurance is something that is not only beneficial but also essential if you want to protect your current standard of living and the lifestyle you intend to enjoy in the future.
Talking of benefits, a close romantic relationship can most certainly be beneficially to us all. The majority of women grow up with the view they'll eventually meet their Prince Charming and build a life together. Every gal needs to note, however, that a man is not a wealth and superannuation plan. Sure your relationship may be built on sharing and trust, but events can transpire which change the nature of your romantic connection to the point where it becomes little more than a legal contract. Pay heed. Recognise your marriage/de-facto is not a cast-iron guarantee and warranty for financial security and happiness. For this reason, Rule 2 (money and assets, as mentioned in my previous blog) should be practiced. If all remains well in Paradise, you'll be financially stronger as a couple if you are personally money savvy and independent. If on the other hand, the worst transpires and you end up in Splits Ville, you'll be able to stand on your own two financial feet.
SINGLE AT 45
Once you've bought your mousetrap, you should be concentrating your energies on building up something for those twilight years you are sure to encounter. This is where KiwiSaver or some form of retirement vehicle comes into play.
At this point in your life, you should be thinking about your life after work, i.e. your retirement. Channel your cash into your retirement. This does not necessarily mean you should put all spare cash into KiwiSaver or a superannuation fund. KiwiSaver balances are after all currently locked up until you retire.
Possibly it's better for you to have some degree of control over your funds. Maybe a little in KiwiSaver and the purchase of an investment property, shares, etc might be more appropriate. Investment property, if purchased correctly, can provide you with funds in retirement. Practice the principle of investing long and spending short in this regard. It's served many a Russian money baron well.
Above all else, seek professional help in making these vital decisions before you spend one brass farthing. That help should come from someone qualified to assist you and who is independent in nature. Never ever seek advice from a person selling you a product. They are not independent. An hour of your time spent in gathering knowledge from a professional, independent, qualified advisor can literally save you from financial headaches and heartaches.
SUMMARY
We all know money isn't the be all and end all. It doesn't make us happy. But none of us want to entertain the alternative of being broke and miserable. A far better balance is to be being reasonably comfortable. Of course the ideal is to be wealthy and happy. This state of living shouldn't be perceived as an optional extra but rather a mandatory requirement of our existence. Completing your cradle to grave journey without suffering major financial crises and achieving a state of financial equilibrium and freedom is possible providing you understand money and practice good money habits. Those habits must include gaining knowledge and taking certain actions.
Once you've bought your mousetrap, you should be concentrating your energies on building up something for those twilight years you are sure to encounter. This is where KiwiSaver or some form of retirement vehicle comes into play.
At this point in your life, you should be thinking about your life after work, i.e. your retirement. Channel your cash into your retirement. This does not necessarily mean you should put all spare cash into KiwiSaver or a superannuation fund. KiwiSaver balances are after all currently locked up until you retire.
Possibly it's better for you to have some degree of control over your funds. Maybe a little in KiwiSaver and the purchase of an investment property, shares, etc might be more appropriate. Investment property, if purchased correctly, can provide you with funds in retirement. Practice the principle of investing long and spending short in this regard. It's served many a Russian money baron well.
Above all else, seek professional help in making these vital decisions before you spend one brass farthing. That help should come from someone qualified to assist you and who is independent in nature. Never ever seek advice from a person selling you a product. They are not independent. An hour of your time spent in gathering knowledge from a professional, independent, qualified advisor can literally save you from financial headaches and heartaches.
SUMMARY
We all know money isn't the be all and end all. It doesn't make us happy. But none of us want to entertain the alternative of being broke and miserable. A far better balance is to be being reasonably comfortable. Of course the ideal is to be wealthy and happy. This state of living shouldn't be perceived as an optional extra but rather a mandatory requirement of our existence. Completing your cradle to grave journey without suffering major financial crises and achieving a state of financial equilibrium and freedom is possible providing you understand money and practice good money habits. Those habits must include gaining knowledge and taking certain actions.
The Professional Trustee Team
© Gilligan Rowe & Associates LP
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Disclaimer: This article is intended to provide only a summary of the issues associated with the topics covered. It does not purport to be comprehensive nor to provide specific advice. No person should act in reliance on any statement contained within this article without first obtaining specific professional advice. If you require any further information or advice on any matter covered within this article, please contact the author.
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