According to the 2015 Businesswomen’s Association of South Africa (Bwasa) Women in Leadership Census, females make up 25% or more of the director or executive managerial positions in 34 of the 293 JSE-listed companies surveyed. More South African women are taking up leadership roles and may be the main breadwinners for their families.
With 8 March 2016 being celebrated as International Women’s Day, this month serves as a timely reminder that more women should take control of their financial situation. Below are some tips for women to get started.
DRAW UP A BUDGET
It is very important to create an accurate budget that reflects expenses and financial needs while also allowing some money to be left over every month to put towards an investment plan. It is beneficial to learn how to draw up a budget that provides an indication of what is left after deductions to determine what can be saved and what can go towards discretionary spending.
Before making a purchase, take a step back and question whether the purchase is a necessity or a nice-to-have. This will encourage prudent spending and ensure money is left for regular contributions to a savings or investment plan. Larger items like a big holiday or a car should be saved for over a longer period of time and incorporated into the overall budget.
It is crucial that all women take out essential insurance cover such as medical aid, critical illness cover, life insurance and short-term disability cover. The importance of sufficient insurance cover to protect against financial implications of a serious injury, disability or dread disease is vital, especially for women with dependants.
PLAN FOR RETIREMENT
Many women mistakenly believe that when they get married their partner will provide for them. Women need to secure their own future. It is vital to start planning for retirement as soon as possible as prolonged savings ensure better long-term returns.
Author: Tiffany Boesch CA(SA) is group financial director of PPS