3 ways to plan a solid financial future for yourself

It can be more difficult for women to plan their financial future due to their differing networks and access to information. (Rawpixel pic)

Whether a person is financially savvy or new to managing their finances, it can be frustrating and tiring to discuss financial planning.

Men do not seem to have this problem as many white-collar professionals often talk about their recent job promotions, investment portfolio, property purchases and so on.

It can be difficult for women to increase their knowledge, possibly due to their differing networks and access to information.

These money moves will help women to improve their financial situation.

1. Do your own finances/budget

Before growing one’s wealth, the individual must know the extent of their individual expenditure. Remember, knowledge is power.

Sit down and think about priorities in terms of spending and then set a budget for that category. For example: clothes and beauty spending: RM1,000; travel, RM2,000.

Once the budget has been set for all categories, stick to it. Do not allow a partner or the family influence your spending habits. Let them know that the expenditure on certain categories is 10% or less of your overall income.

Putting the budget for each category into a yearly plan will make the amount spent more reasonable and it is a good way of keeping spending in check without having to be reminded.

Check online for free financial planning guides such as PolicyPal.

2. Reduce taxes by investing in yourself

Malaysians can claim tax relief up to RM7,000 (YA2019) for the fees for programmes at recognised institutions of higher learning or professional bodies in the country.

For post-graduate degrees, Master’s or PhD, any course is eligible. For others, any course up to tertiary level in law, accounting, Islamic finance, technical, vocational, industrial, scientific or technological skills or qualifications is eligible.

Check with the Income Tax Department for further details.

3. Plan for retirement

You don’t not have to rely on others for a retirement plan if you know what to do yourself.

Business Insider reported last year that “70% of respondents did not believe they could maintain their current lifestyle during retirement”. This report stressed that not saving for retirement early is one of the main things that affects retirement readiness.

To avoid that, start planning for retirement as early as possible. A delay in planning risks not being able to retire at the chosen time and with the possibility of maintaining a standard of living you are accustomed to.

A simple quiz on the PolicyPal mobile app shows what expenses need to be covered. Within minutes, an email will be sent with a financial report summarising current expenses as well as the expenses of dependents.

Using this report, you can start planning and setting aside a portion of your income for retirement. That way you will not have to rely on anyone for money during your golden years, all thanks to proper planning – today.

As needs change, it is advisable to review your financial portfolio at least once a year.

This article first appeared in The New Savvy

The New Savvy is Asia’s leading financial, investments and career platform for women. Our bold vision is to empower 100 million women to achieve financial happiness. We deliver high-quality content through conferences, e-learning platforms, personal finance apps and e-commerce stores.

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