Money is "everything". We all seek it,we all love to spend it. For the Kenyan woman, the use of finances differs from one stage of life to another. As you grow needs and priorities change. Kenyan Update hereby is giving the Kenyan woman in their different stages the best financial tips that suite them
1. Singlehood
Today, many women are happy to stay single
for much longer than they would have a few
decades ago. While this is a time of great
personal freedom, it is also the right time to
start laying the foundation for a solid financial
future.
Some key financial priorities for single women
are:
* Saving for short and medium-term goals like
buying a car or putting down a deposit on a
property;
* Starting a retirement plan – the longer you
save for retirement, the better your after work
life will be!
* Covering yourself through disability cover if
something happens that leaves you unable to
work;
* Having an emergency fund for unexpected
events.
2. Life together
Now you and your Mr Right are settling down
to a life together you can be forgiven for
focussing on the wedding or first house or next
romantic trip. But you should drag your head
from the clouds long enough to adjust your
finances to your new circumstances.
Specifically you should:
* Review any disability cover now that you are
a ‘we’ with dual incomes – your needs will be
different
* Consider taking out life insurance to ensure
your partner is provided for if you pass away
and vice versa
* Decide how you want to handle your daily
finances: draw up a household budget, decide
who is ‘in charge’ of finances, look at bank
accounts and decide if separate or joint
accounts work best
* Draw up a will
* Whether you are getting married or just
living together, draw up an appropriate contract
to protect yourself
3. The pitter-patter of tiny feet
Your tiny little bundle of joy packs quite a
financial punch. Not only will they cost a lot on
a day-to-day basis, but they’ll also need to be
well taken care of should anything happen to
you or your partner.
Some specifics to think about:
* During the very early days, have you got
enough put away to cover maternity leave and
the associated costs of pregnancy and early
child care?
* Have you added your child to your will?
* Does your medical cover work for the whole
family? And have you added your child to your
cover?
* Have you taken out a life insurance policy or
reviewed your existing plan?
* Have you increased your emergency fund?
* Have you started saving for their education?
4. Owning a home
Whether you are making the decision to buy a
house solo or as a couple, this is likely to be
the biggest investment you will make in your
life (next to retirement savings). You will need
to save up a substantial deposit before buying
property - aim for at least 20%. A new house
comes with many other costs such as transfer
fees, alterations, security and furnishing.
Before taking the plunge, make sure you are
very well prepared.
Other things to check off your list:
* Take out insurance to cover bond
repayments should something happen to you or
your spouse.
* Check that your will stipulates the right
people as beneficiaries
* Revisit the details of your short-term
insurance contract
5. Going it alone
Unfortunately, statistically, you are likely to end
up flying solo again, either through divorce or
by outliving your partner (women live on
average seven years longer than men).
If you do face divorce, some financial
considerations:
* Alimony, maintenance and custody of
children, division of assets, healthcare, life
cover, and retirement savings and investments
* If necessary, amend your will, and revisit
your estate plan to ensure that your children
are provided for.
If your partner dies, it is important to be very
familiar with the benefits attached to life
assurance policies and retirement funds as
well as having a good grasp on his financial
affairs in general.
6. Retirement
Retirement planning should ideally begin when
you start working. Just as important, however,
is the management of your money once you
have retired.
Things to think about:
* It is never too late to take out a retirement
annuity – your eventual lump sum decreases
dramatically with every year that you postpone
it.
* Once you have retired, you will require expert
advice on the right pension to buy, and gaining
further capital growth through reinvesting your
money at the appropriate risk.
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