8 Financial Tips Woman Should Know
As women, we often neglect financial responsibility as we focus more on others, such as our parents, spouses, and children, forgetting that when an unexpected event happens, we only have ourselves to rely on.
Finances are not in any way a small matter, and as such, we share with you 8 actionable tips and pearls of wisdom to help you, as a woman, to take charge of your financial and money matters, to build a secure financial future, and to overcome financial challenges.
1. Financial Literacy Matters
Embrace the power of knowledge. Financial literacy is crucial in enhancing a person's standard of living.
Therefore, women must put in effort and invest time in understanding financial terms, budgeting, and investment basics.
The more informed you are, the better equipped and prepared you are to make sound financial decisions. Knowledge is the key to financial independence.
2. Understanding Your Rights in Inheritance
As a woman, we must be aware of our rights in inheritance, either as a daughter or as a wife.
It is essential to understand where we stand as daughters and wives as each woman is guaranteed their inheritance right in faraid.
Once married, understand women's rights for harta sepencarian (jointly acquired assets) as preparation if anything happens to the marriage.
Openly discussing financial matters with your spouse is essential in ensuring financial stability and harmony within the family.
3. Cultivate Marketable Skills
While women in Malaysia have come a long way over the past six decades, they have yet to make adequate progress in the workforce to be on par with men.
There is still a glaring gap between women and men in workforce participation, with Malaysian women's participation being one of the lowest in the region.
Women's workforce participation in Malaysia is at about 55.6%.
Given the current situation, women should invest in continuous learning and skill development and, if possible, make it part of their stable financial source.
Continuously cultivate expertise that will enhance your professional value by staying updated with industry trends and getting certifications or courses that can open new opportunities for career advancement and increase your income.
4. Manage your money wisely
Managing your money wisely is essential regardless of your status, whether you are a single woman, a wife, or a single mother.
Start to save and invest while you are young, avoid unnecessary debt, especially credit cards and personal loans, and focus on sharpening your skills and building a career.
Create a realistic monthly budget to ensure you can manage your money to achieve your financial goals.
Make it your dream to own a house or a car and ultimately have financial freedom without relying on your spouse or family.
Track your spending, reduce or eliminate unnecessary expenses, and allocate funds for investments.
A well-managed budget is the foundation of financial stability, allowing you to control your finances confidently and for better peace of mind.
5. Invest to Build an Emergency Fund
Apart from achieving your dreams, building an emergency fund to cover unexpected events and expenses is important.
You should aim to have at least three to six months' living expenses, whether single or married.
This emergency fund will act as a safety net, ensuring you can handle unforeseen financial challenges without burdening yourself too much, putting you into debt, or derailing your long-term plans.
For those who do not have a monthly income, such as a housewife, try to allocate some of the money given by your spouse for investment.
A mere RM50 monthly in Amanah Saham Bumiputera (ASB) will go a long way if you are committed to doing it.
It is important not to withdraw the invested money and the dividend unless it is urgently needed.
Do not rely on other people to fulfill your financial needs. Build it in your own account, under your name, to ensure it is yours.
6. Diversify your investment and plan for retirement
An emergency fund is a need, and when you finally succeed in building it, you need to start diversifying your investment.
Strategize your investment with the ultimate goal to retire comfortably.
Having strategic investments will pave the way for long-term financial success.
Secure your retirement with careful planning and foresight so that you will not have to worry about working again when the time comes.
When investing, consider investment options matching your risk tolerance and financial goals.
There are many opportunities, but choose one that matches your ability, knowledge, and personality.
Some of the best low-risk choices are fixed deposits with banks, while the medium-risk investments are gold, property, and unit trust.
If you are bold enough and have extra money, you may try to invest in high-risk investments such as the stock market.
7. Deep dive into your employee benefit
One of the important aspects you need to focus on when choosing your workplace is the benefit offered by your employer.
Among the elements that need to be evaluated are the medical benefits, EPF contributions, and performance bonuses.
You may also need to assess the distance of the office from your home, flexibility, and opportunity to move upward.
Some women neglect this aspect and end up not choosing the best employer, despite having an opportunity to do so or having to let go of a good, promising career once they have a family.
8. Ensure Your Well-being
Protect your health and assets with insurance coverage. Health and life insurance can shield you from financial setbacks and assist in covering your medical costs.
Understand the policies and choose a coverage that aligns with your needs as a woman.
For example, as a women, we are prone to crucial illnesses such as breast and cervical cancer. As such, buy health insurance covering such diseases as the medical treatment cost is very high.
Start early to pay lower premiums as the insurance cost increases as you age.
Remember, financial empowerment is an ongoing journey. By implementing these tips and staying proactive, women in Malaysia can confidently navigate the complexities of personal finance, breakthrough gender-based financial barriers, and pave the way for a prosperous future.
Women can make better household expenditure and financial planning decisions with knowledge and greater awareness.
