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Understandably, women in this category are generally vitally concerned for their
future financial independence. Sadly, often it is not until time elapses or problems
arise that this concern surfaces.
In some cases, a divorcee receives compensation in the form of monthly income. Any
extra money can be invested in relatively conservative investments such as fixed
income securities. Managed funds such as bonds or balanced funds which provide steady
income growth is a good choice. Balanced funds usually invest half in fixed income
securities and another half in equities.
If income is comfortably sufficient, focus on investments that provide capital growth
such equity funds. These funds tend to have greater short-term volatility but tend
to grow in the long- term.
Women who are generally very dependent on their spouses financially will likely to
be the worst hit. Depending on the age of the individual, a widow's requirement differs
greatly. The first step is to determine if you are entitled to any pension or insurance
funds. Beyond this point, a financial advisor may help to solve your problems.
With a stable job and no immediate financial worries, career women accumulate
capital more readily than others. However, this should not suggest that individuals
in this group should spend as much as they like.
Extra cash should be invested to produce long-term growth to secure your financial
security. A mixture of investments such as equity, bonds, commodities, collectables,
managed funds, and etc. should be considered.
Women can play a great role in budgeting for their household. There are countless
ways to save every sen that you earn. For example, long distance calls made during
evenings or weekends can cost significantly lower than weekday calls. You can save
hundreds of Ringgit a year by shopping at warehouses.
You are likely to spend much less if you go shopping with a list. Buy what you want
and leave immediately. The longer you stay around the store, the higher the probability
you will find an impulse item that you would regret later.
What about credit-card users? At least 5 out of 10 women carry more than one card.
Here are some tips: i) control your credit-card spending. ii) try to avoid late payments
charges by making timely payments. iii) try to avoid cards that charge too much annual
fees. There are other cards which charge less or provide it free of charge. iv) do
not use a credit card for cash advances since they charge you daily interest from
the day the money is withdrawn and much much more.
When it comes to investments, make an effort to learn some basics about the art of
investing. Beware of all the investment options available to you. Make sure you understand
the product first before you invest. Some investment types may not match your investment
objectives.
Listen only from the professionals as they can provide advice based on experience
and extensive research. Your good friends may mislead you in making poor investment
decisions mainly because they themselves are not aware of what they are going into
and their objectives differ from yours.
There are no real secrets in achieving consistent, above average and long-term investment
growth. There are many alten~atives and new tools available to help you plan and
grow your money easily, effectively and economically. Women should make it a point
to equip themselves with adequate investment knowledge and plan to secure a strong
financial foundation.
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