It is critical that women grasp the concepts of saving and financial planning if they want to secure their financial futures.
As the main breadwinner in many households on the country, women often have to handle the rising cost of food and electricity as well as increases in inflation and interest rates.
Five women share their tips for saving money:
1. Plan your own budget
A budget is a plan that will help people keep track of their finances by giving them an overview of their income, expenses and savings.
This TikToker shares with people who are new to budgeting, tips on how they can create their own budget. In her video, she lists her monthly income as well as her list of monthly expenses and the cost of each expense.
She also shows people how they can break down her expenses into online expenses, cash payments and savings.
@nomazdiaries A budget method that saved my life #budgetforbeginners #fyp #viral #nomazdiary #cashenvelopes ♬ Intentions (Instrumental Version) [Originally Performed by Justin Bieber & Quavo] - Elliot Van Coup
2. Use the envelope method or a budget binder
With the envelope method, a person’s income is divided into different categories. Then the total allocated amount of money for each category is put in an envelope.
People on TikTok have taken the envelope method a step further by using colourful budget binder. The budget binder also uses the same method of dividing your income into different categories, but the money is put into the sleeves of a binder instead of envelopes.
Larger payments, like rent or insurance premiums, will automatically go off your account, but users can use this method when paying for your groceries or petrol.
@docsonabudget Have you tried the cash envelope method? Link to videos on how to get started in bio ✨#MadewithKAContest #budgeting #cashenvelopestuffing #cashstuffing #budgetbinder #etsy #amazon #budgetingtiktok #budgetingcommunity #money #moneytok #learnontiktok #summervibes ♬ Roxanne - Instrumental - Califa Azul
3. Start cash stuffing
Cash stuffing is similar to the method mentioned above, where people away cash into colourful envelopes or clear sleeves in a binder. But with this method, instead of just paying for groceries and petrol, people also save towards long-term goals such as buying a car or a holiday or starting your own emergency fund.
@cashstuffingfix #cashstuffing #cashenvelopes #budgetingtips #adhdtok #adultadhd #FritoLayRickRoll #StepandFlex #k18hairflip ♬ original sound - CashStuffingFix
4. Speak to a financial advisor
Paula Walker, a director and advisory partner at the Consolidated Wealth Group, said that women should think of a financial advisor as their own personal trainer, someone that will guide them and keep them motivated about financial planning.
According to Walker, an advisor helps you focus on the big picture and will build a portfolio to match your goals.
“How often you interact with them is up to you – but periodic check-ins will keep you on track, and by attending these meetings with your partner, you’ll both be updated on your financial progress,” Walker said.
5. Save towards your retirement
Men usually retire on 35% of their final salary compared to the 9% to 26% for women, according to the Alexforbes Member Insights 2021.
Therefore, women generally retire with less money because of the gender pay gap between men and women. This means that they save less and get less of a matching retirement contribution from their employer.
Belinda Sullivan, head of corporate consulting strategy at Alexforbes said, “Women can tackle this challenge by starting to save from as early on as possible.”
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