How to enter on the path to financial independence, and reclaim your strength after loss.
Financial adviser Maree Gordon has seen and heard it all over the years in her office:
A widow whose husband tragically passed away, with all of their financial records stored in a locked computer. She didn’t know how to access their joint accounts or transfer money for bills.
A divorcee who suddenly had to manage a new mortgage and household finances, after letting her ex-husband take care of it all in their last home.
Modern Kiwi women are more educated and independent than ever, yet many still rely on their partner to manage the household finances, mortgage and investments.
“Modern women are busy: we’re running businesses or holding senior positions in organisations, we’re running the house and managing the family, we’re pursuing our own passions and maintaining our social lives … many people don’t have time to manage their finances, or take an active interest in the bigger family financial decisions.”
- Maree Gordon
Financial Adviser, NZFP
However, this pattern of thinking can lead to trouble, as seen in the stories above.
Empowerment through financial independence is one of the best ways a woman can protect herself against the challenges of life, no matter what life stage she’s at.
It’s never too late to start learning, and it doesn’t have to be difficult. As Financial Advisers, we’re experienced in guiding women and men through their journey to financial freedom.
Women in New Zealand typically have lower financial literacy than men, but are more open to asking for help and direction. Wherever you are in your life, and whatever your marital status,
the best time to start is today.
Discover the six steps on the path to financial independence for women:
Step 1: Ask questions
For women who are not already involved in the finances of their household, the first thing to do is ask questions – lots of them.
How many years until your mortgage is paid off? Who is your Kiwisaver with? How much are you on track to retire with? How secure are you in the event your partner or yourself lose your job?
These questions don’t have to be asked or answered all at once (in fact, it’s probably best you don’t bombard your partner without warning), but try to be mindful of the comings and goings of money within your house, and ask questions as things arise.
Questions about where your money is, how your money is being used, and why
it’s being utilised in that way are good places to start. You may find that your partner becomes unstuck around some of these points, which can lead to a new learning opportunity for both of you.
Step 2: Get to know your situation
If you’ve been too busy to be part of the financial decision making in your home, it’s time to change that. You may have a lot on your plate already, but by starting early you can afford to learn slowly and avoid overwhelm later in life.
How well do you really understand your current financial situation? There are several areas to look into, to create a full picture:
- Income
Despite sharing almost everything else in their lives, many couples still do not share details of their income with each other. If you are creating a financial plan together, however, it’s vital that you can be open and honest with each other about how much you earn, in order to accurately calculate how much you may need going forward.
- Outgoings
If your partner is always the one paying the bills, your regular household expenses may surprise you. As part of creating your financial plan, we look at what your income and outgoings are to determine the surplus that can be invested toward your future to create the life you want.
- Debt
Your family debt may include a house, credit cards, and a car or two. It’s important to be aware of your debt level, and repayment rates. When your mortgage is being renewed, be involved in that conversation, and don’t forget to ask questions if there’s anything you’re unsure about.
- Assets
Your Kiwisaver may be your only asset, or you may have a trust and investments. Do you know how to find information about these, and what their value is? Do you need to take action on these, or do you have a trusted financial adviser who manages them for you?
Step 3: Work with your values
Surprisingly, not enough people make the connection between their wealth and their values, but for a couple, this can be one of the most important financial conversations you have: What is important to you, and why or how are you investing toward that?
“I’ve seen couples come in to create their financial plans, and they’ve spent years building their capital but have never really had a discussion around what they intend to use it for. For example, she might like to support the kids through university, whereas he believes they should pay their own way.
In order to make successful decisions, you have to have that discussion and decide what you are working toward together.”
- Maree Gordon
Financial Adviser, NZFP
NZFP believes in wealth for wellbeing – we create financial plans that enable you to live the lifestyle you deserve and support the ones you love. All of our discussions involve a dive into what you value, and what you need.
Get started with a call to Maree today.
Step 4: Ask for help
For women who already have some awareness of their finances and values, this may be the first step they take on their journey to financial empowerment.
Maree Gordon is passionate about helping Kiwi women to reclaim their strength, particularly after the loss of a loved one, by providing expert financial guidance and ongoing support. She knows, though, that it isn’t always easy for women to approach advisers, or to find the right one:
“For some people, speaking with a financial adviser may feel very foreign. Some women have commented that they don’t want to be condescended to, or judged for not knowing their financial details. A good financial adviser will not judge. A good financial adviser will listen and support.”
“In many cases though, it helps that as a woman I can understand their situations. I know what it’s like – we women have a lot on our plates, I’m a mother, I have a career, I can empathise with my clients. It’s easy to keep on putting ourselves last, and not carving out time for our own needs, which is why I partner with women to offer financial planning support throughout their life stages – because they need to be taken care of too.”
- Maree Gordon
Financial Adviser, NZFP
Search for an AFA (Authorised Financial Adviser) or a CFP (Certified Financial Planner) near you, and remember that each adviser is different, and you may not find the right one for you immediately. You may need to meet a few before you find one you want to work with.
Don’t settle, take the time now to find a good adviser and you’ll save yourself time and energy – and money – in the long run.
Step 5: Make a plan
Once you’ve engaged a financial adviser, the next step is to start creating your personal financial plan. Your first meeting will be a cost-free, obligation-free consultation to decide whether there is a good fit between yourself and the adviser.
From there, a financial plan will be personalised to your values, needs, goals, situation, and risk comfort level. Expect your financial adviser to ask questions around your current situation (think back to the points in step 2) and the life you’d like to live with your capital.
Step 6: Enjoy the security of financial independence
Whether you’re 26 or 62, partnered or living alone, the best time to set yourself up for future security and comfort is now.
With a growing understanding of your own financial position, awareness of household finances, and personalised plan in place, you can feel confident in your future, and confident in yourself.
