THE FACTS OF LIFE -
WHAT EVERY WOMAN SHOULD KNOW ABOUT MONEY (WHETHER MARRIED OR SINGLE)
by
Craig Lock
How to make the most of your money...
"Money can't buy you happiness. But it helps you to be miserable in comfort."
# FACT ONE: MOST OF THE FINANCIAL HARDSHIP
EXPERIENCED BY WOMEN IN LATER LIFE IS DUE TO SOMEONE REFUSING TO
FACE FACTS EARLY ON
These days there is no need for any woman
to spend the second half of her life with a lower standard of
living. Yet many still do. This is because they continually
defer the decision to do something about preparing for their
financial future until it is too late. In some instances it is
because a woman doesn't know exactly what financial provision
has been made for her, or feels awkward asking. Or maybe she
doesn't marry, in which case she MUST provide for herself, but
fails to do so. When you are young, healthy and enjoying life,
it seems unnecessary to be thinking of putting something aside
and there is always something else to spend the money on. With
good luck of course you may never need to bother. But trusting
in luck is no way to provide for your future, how often has luck
let you down in the past? Life, as 'they' (who is 'they'?) say, is what happens to you while you are making plans to do
something else. (Think it was John Lennon who uttered those wise
words.) So it is better to make provision for the unexpected, because the older you get, the more the unexpected happens.
# FACT TWO: WOMEN NEED TO PREPARE FOR FINANCIAL INDEPENDENCE JUST
AS MUCH AS MEN DO.
These days one does not hear so much about
the "family breadwinner, "largely because so many women either
provide for themselves or make a substantial contribution to the
FAMILY INCOME. But what happens if your husband dies and his
income dies with him? Suddenly you are prevented from working.
All to often the result is a dramatic fall in the family's
standard of living and in their quality of life. And this happens
just at the time creature comforts are most needed to soften the
blow. No amount of money can bring back a loved one, but quite
small amounts set aside regularly can make the difference
between sadness and absolute despair for you and your children.
The only way to be sure you can cope is to do something about
it yourself-- to make sure you are adequately provided for.
# FACT THREE: THREE OUT OF FOUR WOMEN HAVE NO PERSONAL SAVINGS.
Women are natural savers. Security comes very high on their list
of life's priorities and yet so few have actually managed to
save anything at all. Others have put aside a little in a
savings account or building society which is fine for short term
savings but doesn't really offer a chance for the money to grow
into a worthwhile sum. Many who have saved watched the demand of
the early years of marriage swallow up their nest egg and never
had enough incentive to replace it later on, thinking that
everything would be provided for.
# FACT FOUR: WOMEN LIVE
LONGER AND SO HAVE A GREATER CHANCE OF BEING LEFT ALONE.
On
average a woman can expect to live longer than a man. For a
married woman the implications are obvious but a single woman
will also face the possibility that later in life she will have
fewer friends and relatives around. In neither case is this a
time for financial hardship. Some women manage to lead active
and fulfilling lives in their later years even when living
alone. But in the majority of cases these are women who have
made, or made for them, provision for their financial security.
It is possible to be happy, active and fulfilled on the State
old age pension. But this is not easy... especially these days
Anyway, State Pensions all over the world are being drastically
reduced. The politicians say with an aging population they are
unaffordable (is there such a word?)...but who can ever believe
a politician! My advice: Take responsibility for your own
financial destiny. Make a commitment to save something out of
your pay packet.
# FACT FIVE: ONE MARRIAGE IN THREE ENDS IN
DIVORCE, DESERTION OR SEPARATION
The statistics of the divorce
rate don't always prove that marriage is in a bad state. In many
instances they prove that women are no longer prepared to put up
with all that they were asked to endure. "Sorry guys, I'm off!"
Unpleasant as it may be, divorce often comes as a blessing. But
it can never come as anything but a tragedy if the separation
means a lowering of standards, having to refuse the family
little pleasures they have grown used to. The woman who starts
out to plan her own future is not only able to cope if something
should happen, but is less likely to have it happen.
# FACT SIX: THINKING ABOUT WHAT MIGHT HAPPEN DOESN'T MAKE IT HAPPEN.
"It's morbid". "We don't want to think about it." That has been
used as an excuse time and time again. But not thinking about it
won't prevent it happening. The time has come to be positive.
But taking a hard look now at your situation and doing something
about it won't be tempting fate. But it will be a positive step
towards making sure that no matter what life may have in store ,
good or bad, you can rest easy in the knowledge that you can
cope on your own if necessary. And that's a feeling every woman
in the country should get to know. Because without financial
independence most of the other rights women now have are hardly
worth having.
THE FINAL WORD: Whatever you decide to do about
your financial security, DO SOMETHING. PLAN for the future and
let financial services products like life assurance work for
you. They don't have to be such a "drag" or a painful nuisance
to you and your family. One of the greatest human wants is a
feeling of security... and only life assurance can give you that
peace of mind. As Winston Churchill once said so well: " If I had my way I would write the words 'insure, insure, insure'
above every household door." Well being an "insurance man" for
so many years, I had to say that!
In my next article we'll have a look at 'How to Buy the Right Life Assurance for Yourself'. Exciting stuff, eh!
Hope this information has
been helpful to you.
Good luck*
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About the Author: Craig has worked for "many moons"
in the financial services industry. He has studied and written
extensively on money matters: articles, brochures for financial
institutions and books (including money books). Craig Lock's books
on money management and how to achieve financial success are available
at:
http://www.bridgeniche.com/
Craig
Lock http://www.craiglock.com
* "luck", as they say, is where preparedness (is there such a
word?) meets opportunity.
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