Saving towards a good financial future is important for women, as they generally outlive their male counterparts.
This means that many women have to face a future without a partner or spouse.
As the main breadwinner in their households that often have to deal with increases in food costs as well as rising inflation and interest rates starting to save is critical to a secure financial future.
Five women share their tips for saving money:
1. Budget
A budget is usually drawn up to help people keep track of their finances by giving them an overview of their income, expenses and savings.
Below, TikToker NomazDiaries shares people who are new to the process of budgeting 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 further breaks 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. Envelope method/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.
TikTokers have taken the envelope method a step further with the budget binder. It involves 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 use can use this method when paying for your groceries and petrol or starting an emergency fund.
@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. Cash stuffing
Cash stuffing is similar to the envelope method where people away cash into colourful envelopes or clear sleeves in a binder. The envelopes or sleeves are labelled for different budget categories such rent, groceries, savings and petrol.
Using the cash stuffing method, people can save towards like a car or the holiday you have always wanted to go on.
@allthingsplanned_ Cash stuffing for July week #3! ALL PRODUCTS LINKED IN PROFILE 💋 #cash #cashstuffing #cashenvelopestuffing #cashenvelopes #sinkingfunds #money #asmr ♬ original sound - allthingsplanned_
4. Speak to a financial advisor
According to Paula Walker, a director and advisory partner at the Consolidated Wealth Group, women should that think of a financial advisor as a personal trainer, someone to guide you and keep you going when you might feel overwhelmed.
“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. Retirement
According to the Alexforbes Member Insights 2021, men usually retire on 35% of their final salary compared to the 9% to 26% for women.
Women usually retire with less money because of the gender pay gap between men and women. Therefore they save less and get less of a matching retirement contribution from their employer.
Belinda Sullivan, head of corporate consulting strategy at Alexforbes says that women can tackle this challenge by starting to save from as early on as possible.
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