Dionne Allison, Contributor
Dionne Allison
FINANCIAL UPHEAVAL can further complicate the emotional turmoil associated with separation, divorce, or the death of a spouse. You ask yourself, how will I survive on one income? Will I be able to maintain my current lifestyle? Will I still be able to achieve my goals? Will I be financially prepared for my retirement years?
Many women make the mistake of falling into complacency with regards to financial matters, once they are married or in a committed relationship. Salaries and savings are pooled to allow ease of management of income, expenditure and investments. While this proves to be the most efficient way of managing joint finances, some women fail to keep abreast of how their funds are being spent/ invested, or play an active role in the management of their funds. As such, they are sometimes ill-prepared to assume full control of their finances.
There is hope. Women have proven to be resilient, and with the guidance of a trusted financial advisor, are usually able to face this challenge head-on. Not only can you manage your finances, you can become a savvy investor and achieve your goals.
STARTING OVER
First, determine what resources you have at your disposal.
Determine monthly disposable income by comparing income with your expenses. You may find that certain expenses are now more onerous, as you will have to bear the full burden of costs such as mortgage, rental, or utilities. Your income level may also change, so you are likely to have to find ways to reduce expenditure. Budgeting is very important at this stage. Prepare a detailed and realistic budget and determine what your monthly disposable income will be.
Categorise your assets according to their classes, e.g., real estate, stocks, bonds, money market investments. Collate information on your loans. What are their tenures? What interest rates are you paying? What is your total liability? Your advisor can help you to determine whether your loans should be refinanced, consolidated, or liquidated, with any change in your disposable income or asset base.
The next step is to determine what your goals are? Within what time frame do you hope to achieve these goals? Rank these goals according to importance, then ask yourself how much risk you are willing to take in order to achieve them. This information will allow your advisor to devise an investment plan specifically for you. Your portfolio will maximise the returns from your assets, while enabling you to achieve the goals you have set for yourself, within a realistic time frame and required level of security.
COMMIT YOURSELF
Responsibility for your success and future is now firmly placed in your hands. That success is within your reach. Commit yourself; speak to a financial advisor you can trust. Create a new beginning, and secure a successful future for yourself.
Dionne Allison is an assistant branch manager at DB&G's Portmore branch. For further investment information, contact her at info@mydbg.com or toll free at 1-888-CALL DBG.
