Ladies: Put your money where your mouth is!
PS: Guideline information: the information supplied in this article is not professional advice. It is a motivational article that is supposed to inspire you to find facts out for yourself.
2006: South African women and girls are earning more money than ever before – rising through those LSM (Living Standards Measurement) groups faster than you can say “economic empowerment”. They are more assertive, decisive, confident and outspoken than ever before… except maybe when it comes to financial issues. Maybe some of you are still taking advice from the guy that your sister’s dodgy husband recommended, eight years ago – flash suit and car, nice torso, talks up a storm. Mostly, you just smile weakly, wave your pen and sign on the dotted line, hoping to look clever and sussed. Or perhaps you are well-informed: after all, you sit in on every single financial planning session with your boyfriend and his financial consultant – you know, the one he knows from varsity days (old boys’ club, anyone?). None of these options seem to be “friendly finance” to you. They suit other people, mainly.
But it’s all good, you’re sure of it – you earn the good money, and you’ve got the home loan, credit card, overdraft, life insurance policy, another credit card, pharmacy account, car finance, student loan repayments, that other credit card, shoe store account, the ’emergency’ credit card, personal loan, clothing store account, upmarket food store account, the credit card that no-one knows about, medical aid, unit trusts, pension fund, motor vehicle insurance, household insurance, the new credit card that just arrived in the post last week, furniture store account, and your old credit card from way back. And who needs a will, anyway? It’s ages before you die. You know all about money – especially spending it! It has occasionally occurred to you that you just might be technically bankrupt – but a little trip to the shops sorts that out quickly. People without money have no stuff, don’t they? You have lots of stuff. Gorgeous stuff. Lots and lots and lots. You’re winning!
Then the other day your friend’s daughter, age fourteen, asked you what a negotiable instrument was, and you almost choked on your G&T…what’s going on, with the youth of today? Cheeky cat – won’t catch you out! That’s elementary financial stuff – a negotiable instrument is a… a… forget it, you’ll check it out online later on…next she’ll be asking you what you earn, and what you spend! It did start you wondering how soon you’ll get that raise, so that you can sort your overdraft out…isn’t an overdraft a negotiable instrument? You negotiate with your bank (i.e., plead as charmingly as possible) for the instrument (of torture: the waiting for the permission…then it becomes an instrument of pleasure, when they give it to you – and you go out and pay your phone bill and buy that Prada handbag…then torture again, when you get your monthly statement)…all those finance terms are just boring accountancy stuff…it’s like lawyers… just out to confuse people… for goodness sakes, you bank online – isn’t that enough to prove how financially and IT-literate you are?
Actually, this might be a sign that it’s time to truly seize your power (yes, this means t-a-k-i-n-g r-e-s-p-o-n-s-i-b-i-l-i-t-y). Seize your power, and use it to make the system work for you. The same way you did in your career (that’s why you moved up two notches in the LSM ratings, remember).
No more burying your head in the sand, relying on your daddy’s wise pronouncements on economics and investments, on what your hairdresser told you, what your husband/boyfriend tells you… or continuing to lurch from event to event in your life, having to do so much homework to find out the most basic information. Finance just doesn’t seem to be friendly towards women.
What if what James Connolly said is true? That “the worker is the slave of capitalist society, the female worker is the slave of that slave”. Nasty! But you must admit, that most of your knowledge about finance is what you’ve heard from men, mainly. Plus you find it boring, so it’s easier to trust their judgment. Well, if you love capitalism (it rewards your initiative and hard work) then perhaps it’s time for you to make this capitalist system work as hard for you as it does for the people who “advise” you. Time to “Rate Your Rand”.
What to do? First, don’t panic. All you have to do is book one weekend a month for the next year, and go shopping. This weekend will be spent shopping for information and choices (instead of those killer kitten heels and faaaabulous handbag which you can’t bring yourself to confess, cost R4 000).
It’s not scary at all: use the grapevine, magazines, ask around, log on, find YOUR OWN financial advisor (female, if it makes you feel more comfortable). The whole finance industry has changed – buzzwords are transparency and accessibility for all…check out www.FindanAdvisor.co.za. for potential advisor profiles. Call them up, ask them to come and see you. Try out two or three: most women spend more time on blind dates and hunting potential partners, than on finding a financial advisor that is going to relate to them. The correct financial advisor can do more for your long-term health, financial and otherwise, than any lover. Get over the idea that you should be someone with high net worth, to ‘deserve’ a financial advisor – think of the person as a pharmacist for your finances. He or she is there to dispense advice, information, and the occasional prescription.
How to choose the correct advisor? Things that you should look for in an advisor: someone that is able to establish a rapport with you, listens to you, determines your needs in an open and honest way. You should feel that you can trust them, and that they will keep their promises. They should provide a personalised, non-pressurised service – with no obligation to purchase anything.
There are different types of advisors, based on the way their services are rewarded. There are several websites (some listed below) which explain the differing fee structures, and the advantages and disadvantages of each approach. The advisor that will suit you the best, depends on what type of person you are – what is more important than anything is that the advisor puts you and your needs first.
You should never feel intimidated or patronised. One of the reasons for most women not having their own personal financial advisor (the same women who would not think twice about consulting a specialist, gynaecologist or psychologist if necessary) is that historically, women have not been treated with the same kind of respect as men, when it comes to finances.
That approach of “leaving it to the husband” worked for your granny, especially from the husband’s point of view. He had the power – power to be informed and make important decisions which affected the lives of those around him. Along with that came respect for his value as a human, which was closely tied to his economic activity in the world. Very last century: good for then, but very bad for you now.
Personal finance has become complicated than in granny’s day – there are many more things to take into consideration nowadays (legislation, products).
This should not put you off.
A good advisor will have the time and expertise to shop around for the best deals and products for your situation. The best deals combined with a carefully considered financial plan will result in a better quality of life for you: confidence that you have helped take care of your own future. Your turn to have the knowledge and power! Sorry for you, granny.
A good financial advisor will not make you feel inadequate, nor should they try to be “kleva”, wrapping simple concepts up in arcane words and phrases.
SHOP AROUND (that’s what most women are good at, right?).
Choose someone who uses simple language, takes the time to explain things to you and work out a clear summary of your needs, wants and goals.
YOU DON’T HAVE TO BUY ANYTHING.
What else?
– Pass your knowledge and experience on – what you know now, and what you learn in the future. Talk to younger people, especially girls – destroy this image of finance as a difficult and mysterious thing, understood only by nerdy white guys in suits. Practice ubuntu; spread the word.
– Acknowledge that most women approach finance differently from men. Women tend to be more risk-averse and conservative in money matters. It’s not wrong, it’s different. Take your time; learn about the investment process. Women often prefer the “surest” bet or investment.
– Get interested in everything to do with finance. You pride yourself on your good taste and knowledge of trends, style and quality. Use this approach to learn about all things financial. Make your financial plan the most styling and up-to-date one around. Boring? We don’t think so. Scary? Nothing could be more scary than that R4 000 handbag.
– Forget about stereotypes. Concentrate on maximising your time and money. Learn everything: find out what the difference is between term life, whole life and variable life insurance. Ask a lot of questions. Feel strong when you realise that not everyone has all the answers.
– Rate every Rand that you have ever earned or spent. Keep records. Work out a system that works. Make your own choices, based on correct information, putting your money where your mouth is. You are worth it. This time you will have the investments AND the handbag to prove it.
Where next?
– SA Financial Advisors: find an ethical Financial Advisor on SA’s top accredited directory – www.FindanAdvisor.co.za
– Young women in finance: a South African mentoring programme – http://www.ywif.co.za
– Finance articles in plain English, in a newspaper that assumes you have a brain even though you dont have five degrees in politics and economics – The Weekly Telegraph (also available online)
– “Financial Freedom for Women” – Bruce Cameron, Zebra Press 2002
– General articles of interest – especially for women
– http://themeridian.blogspot.com/2006/03/what-you-need-to-know-about-financial.html
– http://mymoney.iafrica.com/retirement/582404.htm
– http://www.btimes.co.za/98/0419/btmoney/money2.htm
– Friendlier finance at bank run by women for women (Berlin, Germany) –
Dawn is an advisor who specialises in personal financial planning and wealth creation, and passionately believes in using information, knowledge and ethics to transform your life and future.
Check out her Fortune Cookie blog, from 19 April onwards http://mzansifortunecookie.blogspot.com/
MzansiFortuneCookie blog is First Aid for Finances: Facts, FAQs and Fun. Aimed mainly at women, but men-friendly too.
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