How to set yourself up for financial achievement.
Let’s talk about success, baby, let’s talk about you and me, let’s talk about all the good things and the bad things that may be, let’s talk about… money, honey.
Raising a family and having children is a beautiful thing – but it comes with a multitude of stressors, like the need for a practical approach to financing your family.
Whether you’re in a supportive relationship, or you’re one of the 81% of single-parent families that are headed by women, you need a solid financial plan if you’re going to do more than just survive — get it right, and you can thrive!
There are three simple steps to becoming financially successful:
- Planning;
- Planning; and,
- Planning.
Does that sound like hard work? Well, we have some great tips to help you plan your finances for a better future. And, if you consider the alternatives, planning ends up looking like a lot less work.
So where do we start – how about some facts?
Did you know that, on average, Australian women earn 14.6% less than men? That’s around $251.20 a week.
Women also have an average of 52.8% less superannuation than men when they retire, even though they live longer. What’s more, women make up more than two-thirds of primary carers — doing more unpaid work into the bargain.
On the flipside, in Australia, women have access to 18 weeks of Government-funded maternity leave. That’s a good thing, right? Yes, but it’s paid at the minimum wage, not at a rate that reflects what you were earning in the workforce prior to your pregnancy — which can be tricky to manage.
When you factor in career breaks to have children, resulting in fewer opportunities for advancement, you really start to see the need for careful planning of how your working life progresses and how you use your income to provide for yourself — and, possibly, your children — in the future.
With all these hurdles in front of you, you might think you have to be some sort of financial Jana Pittman to get over them. Not so. (Although, being a hurdles world champion wouldn’t hurt your chances of picking up some extra lettuce.)
To become financially successful starts with plan, plan, plan. Staying organised is the key to success! Let’s cover a few of the major considerations:
Who will look after your little ones while you’re working?
Childcare can be a big hurdle. Some families can pay up to $180 a day, with the average Australian family paying around $6000 a year. If you do the maths, you may think it’s better to stay home with your kids. It can be a huge effort to juggle those costs, have a solid budgeting plan and make sure everything is covered, especially if you’re a single-income household. However, it’s often better, in the long run, to stay at work and keep contributing to your superannuation, so you’ll be better off when your kids are grown.
Once you have the cost of childcare and schools covered, it’s important to budget what’s left to make sure you’re getting the most from your income. Having a detailed budget that includes everyday expenses, bills and other outgoings, right down to the cost of everyday meals, can make a surprising difference over time.
What about your future?
Look at building your savings early and try, if possible, to make voluntary contributions to your super. Depending on your income, you can make what’s called a ‘non-concessional’ contribution and may be able to claim a tax offset — a win-win for you.
If you’re thorough with your budgeting, you can expect to make some room for actually enjoying life — earning yourself rewards for managing your money.
Gimmie can help with those exciting, (but sometimes daunting) bigger lifestyle purchases when you’re on a budget. Knowing exactly what you’re going to pay for your goods upfront and having the flexibility to plan your repayments over time, without the worry of racking up interest in the meantime can be a huge relief.
And remember, you don’t have to go it alone. It’s alright to ask for help from family and friends, or support groups. There’s also plenty of support online, and from financial webinars, as long as you stick to trusted sources.
Gimmie is committed to responsible lending, so feel free to use our online calculator to assist with your budget planning. Remember, you can plan to get what you need now, and have 1 or 2 years to pay!
