The different obligations and challenges women face transcend religion, race and nationality. This is particularly true in the South African context where women are constantly fighting against different factors from gender-based violence, single parenting and prejudice in the workplace. The question every young woman must then ask herself is in what ways can I carve my own path and become truly independent in todays’ global economy? I believe one of the best ways to answer that question is working towards your own financial freedom. The aim is not to buy the most expensive heels but rather to have the power to live on your own terms — whatever that looks like for you.
5 tips to building wealth as a young woman
24-year-old Ansunette Holtzhausen is an accredited financial advisor. She knows what it means to be a young woman and constantly prove yourself to the world. She provides us with her professional advice to help answer the question “How to build wealth as a young woman”.
Step 1: Master the art of getting started
It is never too late to start with your wealth creation journey. Young women should understand that every day is an opportunity and they should work towards discovering creative ways to earning and maximising their income, says financial advisor Ansunette Holtzhausen of the Momentum Group in South Africa. Even if they are starting their journey from scratch without any money, they need only have the “right mindset” she says. Your mind will always bring up excuses of why you can’t start. The power lies in taking the first step.
Step 2: Don’t walk into the trap, avoid debt like a plague
I’ll admit it, those “get rich in 2 days!” online advertisements are very enticing. They offer a pill for all your financial woes with minimum work and all you have to do is pay a small fee. Plot twist: there is no overnight pill to long-term wealth! you have to work smart. “I believe that working hard now you will harvest later,” says Holtzhausen. “If it looks too good to be true — it probably is.”
Step 3: Strap yourself with the right tools
There is a plethora of financial tools out there designed to help control how you spend and help in ensuring you invest in the right places. However, there are some financial tools that will be more beneficial to you as a young woman. Holtzhausen suggests “Critical illness cover and a Retirement annuity is something that every young woman in South Africa should have.”
Step 4: Evaluate the best environment to multiply your money
We may all be ambitious young women but we are all unique. Holtzhausen uses a methodical approach of assessing each of her clients’ investments portfolios and needs. She says “Considering my own age (24) I would invest into savings for my retirement one day and have peace of mind that I would be able to create my own wealth and never depend on someone else when I need to retire. Remember, only 3% — 4% of South Africans can retire comfortably”. When considering if you should put your money into stocks or savings, it is important to assess your lifestyle, your priorities and your needs.
Step 5: Don’t neglect your health
For many workaholics the last thing on their mind is how healthy they are. Keep in mind that you can’t build your empire when you’re down. Holtzhausen reminds us to “Always invest in your health first.” It is important to put yourself first. Make it a habit to go for regular check-ups at your local clinic even if nothing is wrong. Remember that the extra consultation fee you may pay at the Doctors’ office is a percentage that you could put towards your wealth creation journey for life better experiences.
The bottom line
There are many factors working towards as a young woman but you are still in control. While time is still on your side, you can use the tips above to make it against all odds. You still have the power to decide how and where you invest your money so that you thrive in the long run.
For more help with financial planning, you can reach Ansunette at ansunette.holtzhausen@momentum.co.za and follow her on Instagram @ansunetteholtzhausen
Reach me at bmonare99@gmail.com
