This year, I read a book written by Kim Kiyosaki called Rich Woman. Kim is the wife of Robert Kiyosaki the author of the famous book Rich Dad, Poor Dad. Kim is wealthy in her own right and is a savvy author and public speaker on financial issues for women. In her book, Kim says that she always knew independence was important to her because she ever liked being told what to do. I agree!
Kim tells readers a few hard facts around what tends to happen to women financially upon separation, divorce or the death of their spouse. Statistically a woman’s income and living standards drop after separation while their male counterpart’s often increased. Kiyosaki’s message for women is that they need to avoid this happening to them by taking control of their financial independents. I recommend that you read her book, it is filled with practical advice around this topic.
Whether you are a male or female if you are not informed about your finances it puts you in a disadvantaged position. We often see clients go through this devastation because they had no idea about their financial circumstances.
So how can you become more empowered? I believe the starting point to this is to get informed about your relationship finances. It is important that you know where you stand and where to find documents. It can be very costly at separation if you don’t know what assets you have or where to find them.
Often we find that women feature as the financially under-informed party but men are sometimes in this position too. I cannot stress enough how important it is that you are informed about your family finances. At the end of the day, it is your responsibility too, and in the case of divorce or death, you must know.
So, What Can You Do to Get Financially Informed?
- Sort out your paperwork
- Where do you hold bank accounts?
- What credit cards do you have and with who?
- What superannuation do you have, where are the accounts held?
- Do you have any shares?
- Do you own or rent your property?
- Have a frank discussion with your partner
- Request information from your family accountant or lawyer
- Phone Centrelink if you receive payments from them to find information there
I don’t believe that ignorance is bliss! It is very important to be informed and know where you stand.