Female Entrepreneur SA

Four steps to ensure that your financial plan is as unique as your goals in life

No matter how much money you have nor how old you are, every adult needs a financial plan. Working with a financial adviser may help you to maximise returns on your investments, but financial planning is about far more than calculations on products and returns. It is about you.

According to Craig Kiggen, the Managing Director at Consolidated Wealth, a financial plan is simply a map to reach your goals. “Everyone wants to have more money, but money is not the goal,” says Craig. “You need a financial plan to reach your life goals; money is just the tool that makes this possible.”

Do you want to retire early and travel? Do you want a beach cottage? Perhaps you are saving to send your children to university. These are life goals that require a financial plan.

“You need to know where you are today and where you want to be tomorrow. Your financial plan is what connects the two and it is as unique as you are,” Craig explains. “Deciding to start on the journey to achieve your plan marks a fresh beginning with your money. It means that you’re setting out to accomplish a goal that will change your life for the better.”

So how do you start? Craig shares his top four recommendations for putting together a goal-driven financial plan.

1. List your goals

Having goals is the foundation for your financial success. You have to know what you want to accomplish in order to achieve it. So clearly define and write down all your financial goals. When you start putting thoughts into words, they will become your long-term motivation.

2. Categorise and Prioritise

Now categorise your goals based on a timeframe. Generally, financial goals less than three years are short term goals. Goals with a four to seven year time frame are medium-term goals and those that will take seven years or more are long term goals. Categorising your goals will help you to build a roadmap, and they will help your financial adviser to select the right products to deliver on your different time frames.

3. Fixing a target date

The next step is to fix a target date for each of your goals. But how do you know in advance the date of your daughter’s wedding? Identifying a target date will influence your thought process and your mind will start running a countdown. So, once you’ve made up a date, you need to determine how much money you will need. For example, if you are planning for your son’s university education which is still 10 years away, you need to calculate the cost in today’s prices. Then you need to adjust for inflation. Now you have the future value of your target.

4. How much to save?

Once you have determined the future value of the goal, you can decide how much you need to save or invest in order to reach the target amount. Initially, you may contribute less than is needed, but you will be able to increase this contribution based on your annual income growth. If you do this year after year, then eventually your financial goals will become reality.

So, whether you are close to retirement or fresh out of university, wealthy or just getting by, you can use these simple steps to put a plan in place to ensure your financial future. Once you know what you want to achieve, Craig recommends working with a financial adviser to create a plan that’s tailored for your individual situation.

Craig concludes: “For us, financial planning is about understanding each and every client, what matters most to them, their goals and their relationship with their money. It’s about developing a holistic, integrated plan attuned to their circumstances, needs and priorities at every stage of their lives.”

“Every girl, no matter where they live, deserves the opportunity to develop the promise inside of her.” Michelle Obama

Last year SDC, (a specialist skills development organisation) partnered with Fix Moeti; social entrepreneur and DJ Fix from 5FM for ‘The Fix SDC Learnership Programme’. The programme has been designed to identify female leaders that want to improve their business skills and be part of the Fix Scholarship Women’s Mentorship that includes life and business coaching by Fix Moeti and SDC.

The ladies who were selected to participate in ‘The Fix SDC Learnership Programme’ are all empowered young women who wanted to further their studies, create change and make a difference in their communities. Each applicant has their own, unique vision for their future within their communities.

We caught up with the applicants and this is what they had to say:

Darnell Reed Dhavaran who can be described as a confident young social entrepreneur is completing a NQF level 4 Project Management Course which she believes will help her gain a competitive advantage in the business world. She says, “this programme and the positive learning environment at SDC has afforded me the opportunity to reach both my personal and professional goals which I hope to one day use to mentor future aspiring female entrepreneurs.” Darnell encourages young women to challenge their fears and let resilience be the basis of achieving excellence.

Busi Tshegofatso Mdluli who is busy completing her NQF level 3 Business Administration course, believes that she would not be where she is today had she not been selected for this learnership with Fix and SDC. Not just because of the skills she has acquired, but also because of the people she has encountered along the way.  Busi urges all aspiring social entrepreneurs to never be ashamed of telling their story, because someday it will inspire others.

Another applicant that made it through the selection process is Nonkululeko Khumalo, who is currently finishing off her NQF level 4 Project Management Course. Post the course completion, Nonkululeko plans to start a training school in technology. She says that, “I loved getting to work with a group of supportive, like-minded female entrepreneurs which have opened my eyes to the importance of networking.” She believes that if we want to see women grow and excel in the workplace, we need to help each other by sharing knowledge and supporting one another.

Andile Alexius Mnguni, who is already doing some work in her community for ROAR SA is completing her NQF level 4 Project Management Course. Andile describes her journey as an eye opener to the inequities that still exist within South Africa for young, female entrepreneurs. Through this learnership and her work with ROAR SA - a group that aims to empower children through public speaking, Andile is more determined than ever to forge ahead with her entrepreneurial dreams that she hopes will also enrich and inspire other young women to become unstoppable.

Fix Moeti, Chief Executive and Founder of the Fix Scholarship says, “I am a true believer in encouraging female entrepreneurship and leadership that leads to positive social impact through education. Working with the 2020 Fix SDC Learnership alumni ladies has been so inspiring for me and others that have been part of this journey. I have faith that these young ladies have what it takes to make a change within their communities. The Fix Scholarship is a NPO that offers female social entrepreneurs the opportunity to bring their solutions that address urgent social development challenges in their communities, to life.

The next The Fix SDC Learnership Programme will be announced within the next few months but for more information on SDC, get in touch via the SDC Website, Facebook, Twitter, Instagram or LinkedIn pages.