Building wealth with intention: A lesson for women

My mum and her sisters, now in their 70s and 80s, are widows who have worked tirelessly throughout their lives. Despite their hard work and dedication, they are not necessarily enjoying the financial rewards that one might expect after decades of effort. Yet, they continue to support their children and grandchildren with their presence, wisdom, and unconditional love. They also pursue activities that bring them joy and fulfilment, even without the financial security that should have accompanied their years of labour.

Their story is not unique. Many women, particularly in older generations, find themselves in a similar situation. They dedicated their lives to their families and careers, yet the financial system did not always reward their efforts in the way they deserved. As a result, they face their later years with more love and experience than money in the bank.

This reality underscores a critical lesson for all of us: if you want to build wealth, be intentional. It’s not enough to work hard; you must also work smart, plan ahead, and make decisions that will secure your financial future.

The Journey of Wealth-Building: Intentional and Collaborative

Building wealth is a journey, not a destination. It’s a path that requires thoughtfulness, strategy, and, where applicable, collaboration with your partner. Many people, especially women, tend to focus on immediate needs—taking care of the household, raising children, managing day-to-day expenses—without giving enough attention to long-term financial planning. While these are vital responsibilities, it’s crucial to also think about the future.

One important consideration is the fact that women often outlive their spouses. Statistics show that women, on average, live longer than men, which means they may spend several years, or even decades, on their own. This reality brings an additional financial challenge: how to maintain a comfortable and fulfilling lifestyle in the later years, without the financial contribution of a partner. It’s a sobering thought, but one that should encourage us to plan carefully and intentionally.

Planning for the Future: The Key to Financial Independence

Planning for the future means thinking about how you will sustain yourself financially, especially if you outlive your spouse. It means considering how your financial decisions today will impact your life 20, 30, or 40 years from now. Will you have enough savings to support yourself? Have you invested in assets that will generate income in your retirement years? Are you prepared for the unexpected, such as health issues or changes in your living situation?

These are not always straightforward questions to answer, but they are essential. The goal is to ensure that you have a financial plan that allows you to live comfortably and pursue your passions in your later years—without having to rely solely on the goodwill of others.

Building Wealth Thoughtfully: Tips for Success

Start Early, But It’s Never Too Late: The earlier you start saving and investing, the better. Compound interest is a powerful tool that can significantly grow your wealth over time. However, even if you’re starting later in life, there are still steps you can take to improve your financial situation. The key is to be proactive.

Work Together: If you’re in an alignment, work together with your spouse to build wealth. This includes discussing your financial goals, creating a budget, and making joint decisions about saving, investing, and spending. It’s important to be on the same financial page to ensure a secure future for both of you.

Diversify Your Income Streams: Don’t rely on just one source of income. Explore different ways to earn money, such as investing in real estate, starting a side business, or creating passive income streams. Diversifying your income not only increases your earning potential but also provides financial security in case one source of income dries up.

Invest in Your Knowledge: Understanding how money works is crucial for building wealth. Take the time to educate yourself about personal finance, investments, and retirement planning. The more you know, the better decisions you can make.

Plan for Longevity: Given that women tend to live longer than men, it’s important to plan for a long life. This includes having a retirement plan that can sustain you for many years, as well as considering long-term care options.

Focus on What Matters: While building wealth is important, it’s also essential to focus on what truly matters to you. Pursue activities that bring you joy and fulfillment, just as my mum and her sisters do. Financial security is important, but it’s not the only thing that makes life worth living.

As you navigate your own financial journey, take a moment to reflect on the lessons from those who came before us. Learn from their experiences, and use that knowledge to create a better financial future for yourself and your loved ones. The journey is long, but with intention and thoughtful planning, you can build a life of financial security and fulfillment.