Financial independence is about having control over your own finances. You can make your own decisions without having to rely on someone else to make such decisions for you. By being financially independent you have the ability to support yourself financially. This can be done through your job’s earnings, savings, and investments, without having to rely on financial assistance by the state, family, friends or social assistance. Having at least a basic level of knowledge about how best to manage your money and being competent at taking the right decisions also contributes to financial independence.
Financial independent people can plan ahead for a future they want and dream of. Those lacking financial independence, can only hope that the future provides them with at least their basic needs.
Unfortunately when it comes to this issue, women face a unique set of challenges which may only be overcome by achieving finacial independence. Financial independence is a necessity. It helps you to secure your future, and provides you with peace of mind.
Unique Challenges for Women in Gaining Financial Independence
Traditionally, women have been treated as inferior to men. A woman’s job was to stay at home and take care of the house, the children, cooking and cleaning, while men were expected to work and provide money for the household. Although nowadays it is still seen important for women to take care of the children and other household chores, working towards financial independence has become an important goal for most women too, however many may still face resistance due to old traditions or conservative values.
- Caregiving: most women spend a good portion of their lives raising children, and in many instances eventually end up taking care of elderly relatives. This results in less time working and thus less income savings and less NI payments towards their pension.
- Less pay: women tend to be paid less than their male counterparts, even though they still have to deal with the so-called “glass ceiling”, which limits many women’s opportunity for further advancement in their careers
Whatever your current situation, you need to think ahead and plan for any possible eventuality, so if the situation arises, you will be able to deal with unexpected financial challenges, such as unexpected medical expenses and debt.
Most women may eventually have to manage their own finances at some point in time…
- Life expectancy: the life expectancy of women is considered to be longer than men. Having had no previous experience in handling finances may become next to impossible if their loved ones pass away
- Living alone: divorce, death of a partner/spouse, or living a single life are all possible realities for women. Women who experience any of these situations may have to make all financial-related decisions by themselves
- Statistics: studies on aging show that the rate for poverty in women over 65 is much higher than for men within the same age group
Case Summary
Maria* has been married for the past 20 years to an abusive husband and they have two children. Maria’s husband goes out to work while Maria stayed home to look after the children. Her husband controls all the family’s finances and Maria is totally dependent on him when it comes to finances. She has no money of her own, and is given a specific insufficient amount of money monthly by her husband. Maria has to use this allowance to pay the family home loan and all her family’s clothing, medical and food needs and she never manages to save any money or buy anything for herself. She is stuck in this situation, wanting to leave, yet she can’t afford to do so because she has no money to support herself and her children. Unless Maria starts to work towards trying to gain some form of financial independence, she will find it extremely hard to cope when she eventually ever tries leaving this abusive situation.
(* name has been changed to ensure confidentiality)
Steps to Achieving Financial Independence
What do you want?
Sometimes you may be so caught up in your situation that you may not even be able to pinpoint exactly what your needs are, and what you can do to gain financial independence and to start being in control of your own money. Ask yourself questions such as: what do I want from life? What makes me feel fulfilled? What do I want to accomplish? What do I value the most? What am I mostly afraid of losing? What do I need to have peace of mind? What is my dream?
Take the time to answer such questions. These will help you outline what decisions you need to make before taking a step forward. Once you decide where you want to go, determine what you need to help yourself get there. Plan your journey step by step. Writing these down will help you stay focused.
Whilst keeping in mind the importance of financially independence, start being proactive so you can achieve financial independence on your own terms while working to achieve your dreams
You may need to observe some or all of these steps while keeping your eyes on your goal:
- Create a budget
- Try to save a small amount of your income or family monthly budget regularly
- Create and build up a savings account for emergencies only
- Invest in your future by finding a job or studying to gain a skill or profession
- Think of ways of how you could complement your current income
For help with career guidance, mentorship or with help to find a job contact Jobsplus on telephone number 153 or by email at [email protected]. You may also fill in a contact form on their website at https://jobsplus.gov.mt/contact
Check to see if you are eligible for the in-work benefit, which is aimed to assist couples and single parents who are employed and have children under the age of 23 years, who are still dependent and living with them.
For advice to leave an abusive relationship contact Appogg on 22959000 or helpline 179
