With people remaining single is becoming more and more popular, and divorce rates are on the rise (the current divorce rate in the United Kingdom is currently estimated at 42%, but it could very well be higher) there has never been a more important time to be thinking about security and financial independence as professional females or business owners. In this article we will explore how to become financially secure as a woman, so that you can feel confident that you have a plan that is not dependent on a spouse or partner.
How to Become Financially Secure as a Woman – It’s Not About Being Alone!
This article is not designed to make you think that you need to make all of your financial decisions alone, or be totally independent, what we do believe here at Evolution Financial Planning is that your financial worth should never be dependent on another person – especially as your priorities and your needs change throughout your life.
If you are in the midst of facing a relationship breakdown, or are entering divorce proceedings, we know that it can be an incredibly testing time. Although there’s no way to avoid the emotional pain of a breakup, becoming financially secure can ease any possible financial ramifications of your separation and reduce the burden of feelings about money and security so that you can focus on your emotional wellbeing and healing. Knowing you can cope with things such as legal fees through to unexpected household bills, ensuring you are financially secure as a woman can help you feel safe, find freedom and have confidence to make your own choices about how you spend your money.
Whether you’re single, getting divorced or you are currently dating, there are a few ways to start becoming financially secure today.
1:Take an active role in your finances
One of the most important ways to become financially secure as a woman is to take an active role in your finances.
By ensuring you have awareness of how much money you have in your various accounts and how much you owe in debt you will be able to make informed decisions and plan for your future. By making a commitment to educate yourself on how to manage your money and maintain a position of security, you will be able to feel more confident when difficult decisions are required. The more you know about your money, the more comfortable you’ll feel in your financial decisions.
2: Plan for the future
Although it’s impossible to prepare for unforeseen circumstances, planning for the future can help you feel more confident.
Unexpected payments are bound to come up in life. By preparing for the future, you’ll have a plan in place to set yourself up on your own or pay any legal fees if you face challenges such as redundancy, divorce or other life events that affect your financial stability.
It’s important to start thinking about your plans for retirement, too. You want to be able to enjoy your golden years, so becoming financially secure can help you get ready for later in life. We are passionate about lifestyle financial planning for women here at Evolution. Our team of all women IFAs are specialist in being able to help females just like you to create plan for the future that allows you to realise your goals and have the life that you always envisioned.
3: Choose separate bank accounts
If you want to become financially independent as a woman, choosing separate bank accounts from your partner is a must. Although you may want to share some expenses, it’s also important to have a place for your own money.
A separate bank account means only you can access your funds if something happens in your relationship. It also lets you make your own decisions about how you spend your money. Financial security means being able to spend your money in freedom – and you can’t do that if you need permission from your partner to access your account.
4: Focus on maintaining and improving your credit score
Your credit score is an important consideration in your journey towards financial security. You should focus on maintaining your credit score so that if you need to make independent decisions then you will have access to more facilities should you need to pursue them.
If your credit score is currently low, you should definitely be thinking about a plan to raise that result – which you can definitely do yourself by taking clear action. You can improve your credit score by first becoming aware of where you are currently scoring and then making a definitive plan. This can include making a plan to pay back your credit card balances as soon as possible, paying your bills on time, and reviewing your overall lending. Over time this will give you the freedom to access better loans and make your own choices about how you spend your money.
Gaining financial security isn’t just about saving money for the future. It’s about making positive steps to expand your horizons and feel secure in yourself.
5: Set yourself achievable goals
By setting yourself achievable goals, you can get started in your quest for financial security at any time. There are a number different ways to become financially secure. You might want to start putting a percentage of your monthly salary into a savings account as a key starter, and then look to work with an advisor to think about other savings, pensions and investment options. You need to set clear objectives if you want to reach financial independence, and getting qualified advice can help you to navigate this.
How to Become Financially Secure as a Woman
By thinking about how to become financially secure as woman you will be empowering yourself to have a future where you feel confident and able to navigate the adventure that your life has ahead of you. If you would like to explore how to understand, manage and build your finances then book a call to discuss with one of our female experts. Now is your time…