Money moves you can't afford not to make

Published Jul 25, 2006

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There are more women in high-earning positions than ever before. "Yet often we fail to maximise our assets," says Nicola Horlick, a wealth-management advisor. Want to join the rising number of rich women? Time to correct those money mistakes.

Money Mistake 1: Not focusing on you

“Having your own capital is vital for your self-esteem,” says Nicola. If you live with a partner, set up a joint account for bills and a current account for your own income. "This means you don't have to feel guilty if you buy something that's just for you," she adds.

Top tip: "Check that you're getting the best deals," says Paula Hawkins, author of The Money Goddess (Penguin Books, R154, Exclusive Books). Bank rates and fees vary depending on the frequency and way in which you use your account.

Money Mistake 2: Waiting for Mr Right

"Many women wait until they have a partner before buying property," says Paula.

"You can afford more if there are two of you, but renting is dead money while you wait to find your Mr Right. If you buy a tiny flat aged 26, then marry at 36, you'll have 10 years of equity to invest."

Top tip: "If you're struggling, your parents may be able to invest a deposit or act as guarantors for your mortgage," says Paula. "Or buy with some good, reliable friends."

Money Mistake 3: Thinking Short-Term

Consider the future if you want to amass wealth. On average, women still earn 18 percent less than men during their working lives. And since women live longer than men, you need to include long-term plans in your budget to build a bigger nest egg for retirement.

Top tip: "Write down all of your expenses for a month to pinpoint exactly where you're overspending," advises Paula. "Skipping a morning cappuccino or running in a park rather than joining a gym will free up money that can then be saved."

Money Mistake 4 Playing Safe

Stereotypes lead to the misconception that investing in the stock market is all about gambling. But with good advice it can be a lucrative thing to do.

Top tip: "A good way to ease yourself into stock market investment is by starting an investment club with some friends," recommends Paula.

"You each contribute a small amount every month, and then invest in shares that you all agree will do well."

To find an independent financial advisor (IFA) for money advice, go to www.findanadvisor.co.za.

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