You’ve climbed that corporate ladder, grown your family and maximised your talents – yet you’re still constrained by finances. However, as an empowered woman you know that limits are usually self-imposed. That’s why, as we enter the season of renewal, it’s time to break free and chart a course to financial independence.
So, you may ask, what exactly constitutes financial independence? It’s about having enough consistent income, savings or investments to live the life you want without relying on a monthly salary. In other words, you’re free to achieve the ultimate dream – living life on your own terms.
“Sure,” you may say, “that kind of lifestyle is strictly reserved for the housewives of filthy rich suburbs, not for respected but overworked career women like me.” Not so. By maximising your financial brilliance – after all you’re already with Carrick Athena – you can make it happen. It’s never too late.
Key considerations
No road trip is complete without making a few stops along the way. Your route markers on the map to financial independence include:
- Goal setting: Regardless of how advanced your GPS is, without a destination, you’re lost. Longing for an extended sabbatical in Europe? Found your dream home? Want enough to quit that job and start your own company? Determine the costs, set a deadline and plan your route to reach it.
- Budgeting: It may not be what we associate with living the high life, but no journey to financial independence is complete without a budget. Minimise expenses, allocate money to debt reduction and savings, factor in inflation and stick to the plan.
- Saving: Part of budgeting, saving means consistently putting away money each month. Determine you short and long-term saving goals and decide how much to allocate to each pot.
- Debt management: Before you can be financially independent you need to settle your debts. Determine what you owe and allocate at least the minimum monthly amount to steadily pay off each debt.
- Retirement planning: Helping you prioritise saving, investing in a retirement fund as early as possible compounds interest, is tax efficient and is a concrete way to attain financial independence.
- The right advice: Consult your financial advisor to streamline your strategy.
- This is why the rule of 50%/30%/20%is so important. Just a reminder here that 50% is allocated to your “needs”- things that you cannot do without, like Rates and taxes; or Medical Aid . 30% is allocated to your “wants”- these are things that you would love to have but are not essential. This is also where we tend to overspend. 20% goes to future you and this is the portion of your salary that you pay first – put it away in a savings account, and make sure you don’t touch it.
- If you split your salary up like this, you will never be short of cash and you will have more than enough for retirement. Why? Because you will be living within your parameters and not overspending
Clear on the plan? Now, step out of dreamland, slip on your power heels and take the first step to making financial freedom your reality.
