Studies show that the gender pay gap in both South Africa and internationally sees women being paid up to 35% less than their male counterparts, according to Craigh Chidrawi, executive head of retirement and COO at NMG Benefit.
The gender pay gap, along with tough economic times, means that women find their salaries stretched thin, and they tend to neglect money management, including saving and investing.
For women to have true financial independence, they need to take more control of their money and how to grow it.
Setting financial goals will help you know where you stand financially and give you perspective on what you need to achieve to be in a healthy financial position.
Examples of financial goals include paying off debt, saving for a down payment on a house, or investing for retirement.
Here are three tips to help women set their own financial goals:
SMART financial goals
The first step to setting your financial goals is to make sure they are SMART, according to Charnel Collins, CEO, National Debt Advisors (NDA).
Specific - Be clear on what you want to achieve and figure out how this goal will put you in a better financial position.
Measurable - Make sure your goals are measurable so you can evaluate your progress and goals on your path to financial success.
Achievable - One of the biggest obstacles to achieving a goal is setting unrealistic expectations. Collins said that the surest way to improve your financial situation is to take manageable steps, even if that means smaller steps.
Realistic - Setting unrealistic goals could lead to disappointment. Make sure you assess the steps you plan to take to reach your desired financial position.
Time-based - Having a time frame to achieve your goals will encourage you to stay the course and hold yourself accountable.
Consult a financial adviser
Bertie Nel, Momentum Head of Financial Planning and Advice said that a financial adviser can help people set short-term and long-term financial goals.
People should think of a financial adviser as a partner to help them achieve their financial goals. Considering that people undergo different changes at various stages of their lives, an adviser can offer people advice if they need to alter their goals.
Stay motivated
The ultimate goal of financial freedom may seem like a distant dream to many people. Staying on the right track can be tedious, which can result in people giving up on their financial goals.
Don’t let thoughts of giving up stop you from achieving financial freedom; instead, stay motivated, and you will reap the rewards.
IOL Business