|
Financial Literacy 101
At the June Bellarine Women’s Network get-together we were treated to a fabulous presentation by Colin Pettigrew (B.Comm CPA) - taking us through Financial Literacy 101
Statistics show that only 40% of women are financially literate which is something that needs to be addressed. Colin pointed out that we should review our financial plans regularly and assess how we can utilise our resources.
It's common that women are under appreciated, mostly underpaid in their lifetime and retire with less than men - however they live longer.
We've been wired to perhaps think we are not good at numbers but if you now where your money is going, you're on the way. Take control of your finances in small steps.
Step 1 - what do you want to achieve – set some short-term goals
Step 2 - analyse your spending/bank statements – identify ‘wastage’
Step 3 – go for low hanging fruit – compare utility/insurance costs.
Management of debt includes consolidating your debts which can entail discussions with your finance providers, restructure repayments and audit monthly payments like internet, phone bills, health insurance etc.
Colin explained that budgeting is our "friend" and can lead to more resources and more fun. He recommended an app called Goodbudget and pointed out that the hardest part of budgeting is getting started.
Two secrets to financial security
1. Pay yourself first – set aside, say, 5% of your income into investments or reducing debts, mortgage, and open a ‘me’ savings account.
•You will adjust to live on what you have left. •Increase it to 10% later on….
2. The power of compound interest: interest on interest on interest, etc
Some wealth creation strategies covered included Superannuation (the most tax effective strategy), shares, property and managed funds.
Estate planning was discussed and the importance of this. Also the advantages of a good financial planner who should explain in language you can understand - if they don't go somewhere else.
Here's Colin's recommendations to find out more
CommBank Women’s Financial Wellbeing Guide CommBank - Offers information and tools to build financial wellbeing
WIRE (Women’s Information and Referral Exchange) - Provides resources to help women achieve financial independence, maintain a reasonable standard of living. Practical information on money management
On Your Own Two Feet – Helen Baker (Kindle edition $10) - Written by an accredited Australian financial adviser, it offers practical advice for women at various life stages and covers topics such as budgeting, superannuation and investing through to estate planning and widowhood.
And of course our very own Bendigo Community Bank can assist with financial advice, insurance and investments.
Lastly - some book suggestions available at the Drysdale Library.
Money School – Lacey Filipich - Designed for women aiming to build a solid financial plan and achieve financial independence
Buying Happiness – Kate Campbell - Focuses on aligning financial decisions with personal values. Learn to invest your time and money better. Includes interactive exercises.
Starting Out Starting Over – Susan Edmunds - Specifically written for single women, addresses improving one’s relationship with money. Aims to boost financial literacy and confidence, helping to realise that managing money isn’t as intimidating as it seems
The Money Sandwich – Marc Bineham - For the ‘sandwich generation’ – supporting both children and elderly parents. Provides strategies for managing superannuation, investments, retirement planning
|
