There are many factors which can leave women financially vulnerable, with divorce being only one of them, according to Eloise Boezak, head of Customer Experience at African Bank.
Boezak said that a common mistake many women make is to rely on their spouse for financial security and retirement planning.
But what if your marriage ends and you lose all of your money in the divorce process, or you’re an over-50 mom who has stayed at home all your married life and then your spouse dies?
Women in these situations may take many years to get back on their feet.
“A marriage partner is not a financial plan. Be in control of your finances, of what you are spending and saving and of what you own at all times. Planning for your retirement should be a priority from the day you start working,” Boezak said.
She shares 5 mistakes that can impact the financial future of women
1. Not understanding the implications of an ante-nuptial or in community of property marriage contract.
Boezak said, “Cohabiting partners have no legal duty to support each other financially during the relationship or afterwards if it should end.”
2. Being dependent on your spouse when quitting your job to stay at home
Quitting your job could result in you losing work benefits like medical aid and pension. Make no mistake, women need to make choices that suit them, however, they also need to have financial independence.
Be clear with your spouse on the importance of protecting your financial future and ensure that you have financial future that is independent of your spouse.
3. Not saving money
Saving should be a priority if you want to secure your financial future.
“An easy tip for saving is to set up a debit order that automatically deposits money into a savings account and to keep your cheque and savings accounts separate to stop impulsive spending,” Boezak said.
4. Not budgeting
Not having a budget plan often leads to overspending resulting in debt and unnecessary financial stress. A budget will help you to plan, organise, track, and better your financial situation. Ensure that your budget includes your net income, expenses and space for savings.
5. Failing to set up an emergency fund
Life is full of unexpected situations that can leave you financially unprepared. Save for these emergencies by ensuring you have at least three to six months’ worth of living expenses in your bank account.
As a final piece of advice, Boezak shares that is wise for women to start investing from a young age.
IOL Business