Women continue to gain financial independence to an unprecedented degree, and their earning potential is constantly growing. Yet still, many women remain uneasy when it comes to talking about, and managing, their money.
If you are a successful woman trying to work out how to take control of your investments read on! If you are not stop reading now.
The reality or likelihood is that there will come a time when you will have to manage your finances independently. For this reason alone, I encourage you to read on and learn some simple tips, to help you become financially secure and independent.
I have been blessed to have worked and studied with some extraordinary women. They have inspired me and are my role models. These women are strategic, committed, organised and confident in their chosen profession.
However, sometimes their success compromises their financial well being. They are exhausted at having to make more decisions, and just want a simple plan to help them take control of their financial future.
These are the women who have inspired me to write this article.
I believe successful women can make incredible investors, because many are:
- Confident and level headed;
- Patient;
- Exert self control and discipline;
- Risk averse – and typically do a lot of research before making decisions;
- Willing to listen to external advisors with views that run contrary to their own.
These qualities enable them to make considered decisions, which are critical to long term success in financial markets. With the right information and guidance, you will develop the skills to successfully manage your long term financial future.
To assist, I have the following, simple six step plan – one I have implemented and shared with many other successful women – to assist you achieve financial independence:
- Change your mindset;
- Identify your weaknesses/knowledge gaps;
- Find an adviser you can trust;
- Articulate what you want to achieve;
- Get organised;
- Enjoy the journey…
Step one – change your mindset
We all lead chaotic lives, it is important to understand that managing your money successfully requires your time, attention and energy. The fact is, most of us simply don’t have the time, however for most of us it takes time to build wealth.
Personal fortitude and a single minded focus are essential in planning and achieving your financial goals, along with surrounding yourself with people who can help you.
As soon as you realise that this is a team effort, the sooner we can address step 2.
Step two – identify your knowledge gaps
To be a successful investor you need to build your knowledge base. Some may turn to financial books, newsletters or attending some courses. However, this takes time; something many of us don’t have.
You know what you know, therefore you need to identify what you don’t know and find a way to close the gap. Educating yourself is great, but sometimes we need to call in the experts. So if time is short, you need to find an adviser you can trust, and one that is suited to helping you and identifying what you want to achieve.
Step three – finding an adviser for you
You don’t have to be the CEO of your investments; you can be the Chairman with an appointed financial CEO or CFO. With women’s responsibilities continuing to grow, you need someone you can trust to understand your needs, and help you develop a plan for your financial future.
When looking for this someone, in my opinion the following attributes are non negotiable:
- Trust and Intimacy– find an adviser who will take the time to get to know you, educate you and earn your trust. You want someone to take the time to find out about your work, social and family life – as these details will often shape your financial priorities and financial future.
- Transparency –find an adviser who is honest and candid, especially when it comes to fees, and tell you what you need to hear, not what you want to hear.
- Reliability – an adviser that does what they say they are going to do, and does it well.
- Credibility – find an adviser who is the best at what they do.
- Language – investment language over complicates basic concepts – make sure they talk to you in a language that does not miss the way you make decisions.
- Communication – many successful women realise that their situations are complex, and require the assistance of a number of professional advisors – make sure your chosen experts communicate, so that your investment, legal and tax plans support each other.
Step four – articulate what you want to achieve
It is no different than a business plan. You need a framework aligned with your values and your objectives, to help you make informed decisions. Decisions that deal with the complexity of your situation and sets you on a course to financial security and personal fulfilment are important.
Your adviser will help you, but first there are four major issues you may consider:
- How do you currently spend your money?
- What investments interest you the most?
- Where do you see yourself in 1,3,5 and 10 years time?
- How much will you need when you retire? And when do you want to retire?
Step five – get organized
Reviewing your financial objectives and investment strategy regularly is a must. Small, incremental changes can have a dramatic impact. You don’t let your business float along, you are regularly assessing it – your investment portfolio should be no different. Rather than making significant changes sporadically, regular ‘tweaks’ as appropriate can have an enormous impact.
I recommend you focus on the following three areas when reviewing your investment objectives and strategy:
- Asset Allocation – is it appropriate for the current environment?
- Portfolio Construction – is it well structured are there any issues?
- Investment Objectives and changes in personal circumstances, dependents or significant others- has anything changed?
Step six – enjoy the journey
You have been through the steps. You know what you want to achieve. You know who is going to help you and you are organised.
Feel better?
Excellent.
Life is too short to put this off. You owe it to yourself to make your own investment and wealth management plans.
Don’t wait for death, divorce, job loss, illness or other events to force you to act.
Act Now.
Any advice in this article is general in nature and may not be suitable for your specific circumstances. You should seek personal financial advice before acting on this information.