Every working woman needs a guide to mastering her money.
One of the toughest things in life is making every rand stretch as far as it can, all while balancing everything else – especially if you happen to be the breadwinner. It’s certainly not easy, but the good news is it’s not impossible either. Experts agree that with a hands-on approach, everyone can become a master at managing their finances while navigating the harsh realities of the South African economy. We unpack a proven, step-by-step approach that can help you develop a stronger relationship with money.
Budgeting is your secret weapon
You’ve heard it a thousand times, and you’re about to get it again: budget, budget, budget! A solid budget will be your saviour time and again, it can guide you in times of doubt, and keep you on track with your commitments and obligations. The great thing about a budget is that you can always revise it as you progress, so it always reflects where you’re at. Go beyond basic budgeting and use a method that has been proven to work and will work best for you. For instance, you might opt for the ‘50/30/20 Budget’, spending 50% of your income on basics and obligations, 20% on debt or savings, and 30% on everything else. Do a simple Google search to find a method that suits you the best – and stick to it like glue!
Education is key
The more you learn, the more you’ll grow. Unlocking financial confidence requires knowledge and insights, so work towards understanding key financial terms, products and how to set your short- and long-term goals. Begin your learning journey by following financial gurus online, attending webinars and talks (you’ll find many on platforms like LinkedIn), or joining women-led community groups in your area.
Cover yourself and build your wealth
Let’s be honest, being the breadwinner is as empowering as it can be frightening. Your income is the lifeline of your home – anything that happens to you leaves your entire household vulnerable. For that reason, it’s important to insure yourself and plan for the future. Income protection is available through almost every insurer, and banks have solutions that start from as little as R100 per month and protect you from things like retrenchment and disability. If you’ve accrued debt, credit protection plans can help cover your debt in times of crisis, so your dependents don’t have to take on the burden. Many of us rely on savings for a rainy day; rather diversify your income by opening an investment account (it costs as little as R50 per month at reputable banks) – there are various portfolios with various measured risks, interest rates, yields and maturities.
You don’t have to do it alone
Financial planning is complex and full of jargon. Why stress when most reputable financial institutions offer free advice and experts can help guide you with tailored advice that suits your life and pocket? Schedule a call with a registered financial adviser at a trusted financial institution or bank. Come to the meeting prepared with a set of questions, and remember to be honest: transparency will help them build a tailored plan for you. Brokers and other financial advisors are obliged to explain every possible avenue to you, as simply as possible. There’s no harm in shopping around until you find the right one to plant your money in.
When trouble brews…
Being a breadwinner means we sometimes over-extend ourselves financially, which can lead to becoming over-indebted. When you’re in trouble, the most important thing to do is act fast and reach out to the correct people. Reach out to your credit providers immediately – they might be willing to discuss lower repayments. You can also explore debt consolidation, which will bring all your debts into one payment plan. Be very cautious when entering debt review, however, as this can put your credit into lockdown for up to six years.
Words: Edwain Steenkamp
Photography: Gallo/Getty images
