Latest / The Swan Effect - Creating and Sustaining Your Financial Wellbeing / S2 E12 FemPower!

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S2 E12 FemPower! · The Swan Effect - Creating and Sustaining Your Financial Wellbeing

• 0:00
  Malika Petersen: Your legacy is about more than just investment return. It's about the peace of mind that comes with knowing that you've partnered with an investment manager with the right skills and experience to grow your wealth. Old mutual wealth is a world class investment destination offering you a wide range of investment strategies and specialist wealth management solutions. Together with your financial planner, we model a strategy around your specific needs supported by a multi skilled team dedicated to taking your wealth further, whether your goal is to grow your wealth, generate income or preserve capital, we select the best and most suitable investments based on your investment strategy and our extensive research and insights.
• 0:45
  Malika Petersen: Old mutual wealth is an advice led wealth management business aimed at providing financial planners and their clients with a full suite of industry leading strategies and services. For more information, please visit our website at www.oldmutula.co.za/wealth
• 1:17
  Arthi Rabikrisson: Hi, there, I'm Arthi Rabikrisson
• 1:19
  Malika Petersen: Hello, I'm Malika Peterson.
• 1:21
  Arthi Rabikrisson: Welcome to
• 1:23
  Malika Petersen: the Swan effect podcast.
• 1:25
  Arthi Rabikrisson: Money makes the world go round yet it's not so easy to understand its complexities, particularly when it comes to investing.
• 1:34
  Malika Petersen: That's why Arthi and I are using this platform to educate, inspire and help you gain confidence in your relationship with money
• 1:43
  Arthi Rabikrisson: so that you can better manage your finances and investments.
• 1:47
  Malika Petersen: We are two women in finance,
• 1:50
  Arthi Rabikrisson: That's pretty cool, isn't it?
• 1:52
  Malika Petersen: It certainly is. You've been in stock broking private wealth management, asset management and now an award winning business woman who is coaching and assisting businesses with capital and strategic advice
• 2:05
  Arthi Rabikrisson: and Malika you have a wealth of experience in wealth, excuse the pun in financial planning, investments and relationship management. So you're also at the coalface when it comes to where and how people are investing, or getting it right and getting it wrong
• 2:23
  Malika Petersen: and stuck in the gray areas too. Indeed, I've seen the many phases and moods of financial cycle and how our decisions that those times impact us. So listeners and subscribers. If you are looking to get unstuck, feel empowered and make some strides in how you tackle your money. We are here to help you.
• 2:46
  Arthi Rabikrisson: And it all starts with listening to this upcoming episode. Enjoy.
• 2:54
  Arthi Rabikrisson: Hi, everyone, and Hello Malika.
• 2:54
  Arthi Rabikrisson: It is the August episode of the Swan effect podcast everyone and it's a really, really big one for us. Because August in South Africa is woman's month and of course on the ninth of August, we actually observe Women's Day in South Africa.
• 3:12
  Malika Petersen: Hi Arthi and to all our listeners, I'm really excited about this episode as well. Indeed, we do celebrate Women's Day on the ninth of August as opposed to the Eighth of March like the rest of the world.
• 3:23
  Arthi Rabikrisson: International Woman's Day
• 3:25
  Malika Petersen: This is because we commemorate a march on that day and the march happened in 1956, where 20,000 women marched on the Union Buildings in Pretoria to protest the past laws of the time.
• 3:39
  Arthi Rabikrisson: Yeah, and you know, Malika those past laws, they will actually a set of laws that were designed to limit the movement of people of color and this particular March in March marked a huge milestone for South African women of color.
• 3:54
  Arthi Rabikrisson: Right, it effectively cemented the position as forceful participants in the fight against apartheid and not to be economically or in other ways controlled by men. So imagined we had laws that were designed to actually do this to undermine us even more so yay kudos to you know, our our females that actually went through and did this for us because we're better off for it now.
• 4:17
  Malika Petersen: Definitely.
• 4:17
  Malika Petersen: Definitely. And in today's episode I you know, I'm so excited because we look at how to unlock the power that was unleashed at that march essentially and understand how we can use that to create financial prosperity.
• 4:32
  Arthi Rabikrisson: Definitely.
• 4:32
  Arthi Rabikrisson: In order to do that, though, Malika, I think we must see examine some of the facts and figures that are that are very important around this topic. And I know when you and I started doing research for this episode, I think we were both really surprised by some of the info that we unconvered. So one of them listeners is work done by the Institute for Women's Policy Research and that research said that even though the pay gap has reduced significantly in this last year, it is the first time that that has happened since 2007 2007, Malika, and not only that, but pay equality, listen to this pay equality will most likely not be achieved in the next 43 years, to say the least.
• 5:18
  Malika Petersen: No absolutely, I mean, in this day and age that that is still happening, right.
• 5:22
  Malika Petersen: And then additionally, some of the research that they did showed us that one in five women experienced poverty as a result of divorce. Now, we are also expected to live 2.3 years longer than our male counterparts. And women of color are statistically more likely to be part of the sandwich crisis.
• 5:44
  Arthi Rabikrisson: Oh, you know, do you know, when we look at these kinds of stats, everyone, it's making me think that absolutely essential for us is financial literacy. Right? For women, it's key, because we know women are earning less than men, they're also more likely to take time out of the workforce to care for children and other family members, and as you just mentioned, are more likely to live longer, and also, therefore have more complex financial needs in retirement. So as women were more likely, than not the role models that are going to become de and apparent for future generations, and they are going to model themselves against what we're doing with our finances. So you know, I can't stress this enough. It's essential that we actually educate ourselves and our children so that we can continue to create these wealth legacies for the future.
• 6:33
  Malika Petersen: Ya i think Arthi it's important that we talk about some of the milestones that have affect women today, and how they can best navigate them. As we've discussed before, if you plan accordingly, and you understand what's to come, things are a lot easier, right? So let's kind of start the the end in mind.
• 6:49
  Malika Petersen: Right?
• 6:51
  Malika Petersen: Let's talk about a woman entering
• 6:51
  Arthi Rabikrisson: Okay.
• 6:54
  Arthi Rabikrisson: retirement. All right, firstly statisically she's saved half of what a male counterpart with her, and she may find yourself in a difficult position now.
• 7:02
  Arthi Rabikrisson: This is a really tough one for me, personally, it. I've spoken to many of my female clients about this and, and the reality is that our retirement is often determined by the financial decision that we take during our working life. So what this means is that many women are faced with a dire retirement situation. They have this feeling of it's all too late right. Now, this is especially important that we need to extend the message to the people, the women that we know facing retirment and that they might feel like the strike, if you find yourself in this situation.
• 7:47
  Arthi Rabikrisson: Firstly, remember the tips and tricks that we've shared thus far. So, so go back and listen to all of our episodes. There are lots of tips and tricks to help you in the situation in this situation now, right? More importantly, stay positive and calm, your emotional, and kind of psychological situation around this can impact you positively or negatively. So stay positive, stay calm.
• 8:13
  Arthi Rabikrisson: Next, it's important to create your financial plan with your goals and a budget. Now, as we've said before, it's always best to do this with the help of a financial advisor who can remain objective, and help guide you through the process and your thoughts. Right.
• 8:31
  Arthi Rabikrisson: Right.
• 8:32
  Malika Petersen: Thirdly, inplement that budget to it, track your spending, you know.
• 8:36
  Malika Petersen: Save, using all of the tips that we've shared in previous episodes, but most importantly, your mental space. Like I said, is imperitive, you may need to downsize because of your situation. But take it as an opportunity to see this is a new adventure, and not the end of an adventure. Right.
• 8:58
  Arthi Rabikrisson: I really liked that I liked that lens, first of all, and as you said that mental space, it's so imperative. So when we reframe in that way, absolutely, I think it just bring someone back into the frame of okay, I can get into action and I can do some things here. So that practical advice that you've just shared with everyone, like I think everyone just keep that on top of mind. So I love that and definitely we've talked about different tips and practical ways. Please do listen in to the to the previous episodes to get that. Okay, so that was the retirement phase. Let's work backwards, as you said. And let's come to the middle life stage sort of scenario for women. And you've actually mentioned this term already Malika, the sandwich generation everyone. Now, the trend of increasing lifespans, having children at an older age I mean, these are some of the things that have contributed to this sandwich generation phenomenon, where basically women are given a giving sorry, more financial support to both their adults children, which I know in people do call the boomerang kids now, it's another terminology, but at the same time simultaneously are giving back, you know, to the their aging parents in the form of personal or household or medical care, you know, so it's parents, it's in laws, other family, extended family elders, as well. And as I mentioned, you know, it could be things like even running errands, things of a personal nature, that medical care, you know, and this can be very stressful to deal and to cope with Malika because you've got so much demanding needs around your time as a woman.
• 10:37
  Malika Petersen: Absolutely agree Arthi because even worse, loving attention, right? Always a financial need around this.
• 10:46
  Malika Petersen: And you might be getting warm clothes for your mom or dad for fetching chronic medication or if they need money, right? And obviously, when you have adult kids at home, who may or may not be earning some form of income, we often as parents, moms, dads, you know, we we become a bit soft on how on how we care them the kind of pay for everything, provided for them on a daily basis. Yeah, here's the thing, right? This becomes a habit that is quite hard to break but, it does create an unhealthy, not only an unhealthy dependency from a, from a family financial structure aspect, but also an unreal source of reality for your kids. You're not actually showing them, you know, what the what the real situation is, like, out there?
• 11:39
  Arthi Rabikrisson: Ya you right, you right. And this is where we need to be able to then, you know, protect ourselves and our families to ensure we can still create that infinity legacy we were talking about in our previous episode, right? That's for the future. So you know, if we know that this is the scenario of what's going on, what can we do? Okay, so here's a couple of things. Firstly, sit down and talk with your family members. Okay, so communication really is key does open up. And I know a lot of people are fearful to talk about financial matters with family members. But actually, it's important because you need to assess for example, with your, with your parents, or your elders, you know, what kind of care needs to they do they actually require. And in, in doing this and communicating in this way, you know, part of that process could actually generate support from other areas, you know, help from others to do things. And, you know, I know this, I suffer from Superwoman syndrome, I'm sure you do, too, Malika, we want to do everything, right, because we feel we can and well sometimes we can right, but honestly, you know, it's draining and I honestly, sometimes I feel like I'm the Walking Dead, because I'm just doing so much all over the place. But that's unhealthy.
• 12:55
  Arthi Rabikrisson: Okay. So when we sharing responsibility with siblings, with our adult kids, even on aunts and uncles, you know, who are in a good space. And it could be simple things like arranging transportation, you know, to get to different places, even some of the admin things like booking an appointment, you know, get your medical and things like that.
• 13:17
  Arthi Rabikrisson: And possibly even the cost sharing could be something knowing what's urgent and needs to be prioritized versus what could be deferred a little bit later on. All of these examples are aided to help ease your stress. Now, we've said it previously, listeners, the more organized we can be, it is one of our financial superpowers as women, we do organize ourselves.
• 13:39
  Arthi Rabikrisson: So if we do this in the stain, the outcomes for ourselves and our families is definitely going to be better. So planning, I think, is essential so that we actually mitigate any of these shocks, random shocks that become in that put us under extreme stress.
• 13:56
  Malika Petersen: No, absolutely and I think knowing the financial situation, you know, might be not to be time to potentially consider increasing your means of income when you in this situation, right. So it is an opportunity to potentially take additional responsibilities at work, and maybe ask for the salary increase the line manager, you know, that's now that's an opportunity to do it.
• 14:20
  Malika Petersen: Another way may be to increase what is in your pocket is to build your additional streams of income, right, which was spoken about before the side hustle that weve talking about?
• 14:32
  Arthi Rabikrisson: Yeah, absolutely. I like that, and I think I want to add to that Malika and say that while you're at it with these multiple income sources, and side hustles galvanize and encourage the kids as well, to become economically active with income sources, too, because here's the thing being part of a family and being at home means also becoming financially responsible for the expenses that come with that right now, I know as you said, Malika you this may sound like quite a difficult thing to do, because of your parents want to look after our kids, that's what we do. But actually, let's give them this opportunity to embrace this from a different lens, the fact that them contributing can actually empower them to feel quite fulfilled and satisfied, knowing that they're part of the welfare and well being of the family in a small way, you know, it could be paying, you know, a partial payment of rent, it could be, I'm buying some groceries, you know, for these weeks could be, I'm covering one of the key expenses for the month, but they take that on board. And there is the deep sense of satisfaction that I think they would feel around this, while at the same time, teaching them about saving, and investing principles. And these are all things we've already covered in previous episodes too.
• 15:46
  Malika Petersen: Okay so Arthi , again, some very important financial lessons from a household perspective that you shared with us right, but also valuable as patients pass to pass on to the next generation.
• 15:56
  Malika Petersen: Because you know, the choices we can make with our sources of income and how we spend, save, and invest, as we've seen before informs what our financial future and what our moneyverse ultimately looks like.
• 16:12
  Arthi Rabikrisson: Right, right, right.
• 16:14
  Malika Petersen: So now, I know some of us might be thinking, this is painting a really good picture. But let's add a dose of another life stage. Within this that we all know we choose to leave work or a career to raise their families.
• 16:33
  Arthi Rabikrisson: Yeah, this is big. Yeah, it typically happens in that early to mid stage of one's career, right. So as women, we start a family, you inevitably wrestle with these feelings. It's only natural between, you know, choosing to stay home to raise the children.
• 16:51
  Arthi Rabikrisson: And when do you then come back to work and continue with your career. And sometimes we end up taking extended maternity leave, which means, you know, it's got a big financial implication, we're sacrificing a lot doing things that so this way, its tough
• 17:11
  Malika Petersen: you're on This is a tough one Arthi and and it's, it's a hard one to have to wrestle with, right?
• 17:16
  Malika Petersen: Yeah. I mean, if I take myself, for example, I absolutely love my job, I enjoy every minute of it. I enjoy working. But i also love my family tremnedously and I certainly would have loved to have spent more time at home when they were growing up.
• 17:34
  Arthi Rabikrisson: I mean, you keep you making it real? Yeah, I mean, this is exactly it, we're caught between a rock and a hard place between things that we love, and trying to always find a balance between the two. So, you know, maybe I think one of the things I would offer is, is what we've just mentioned around, you know, planning, planning early on, in terms of that being key towards achieving some level of financial stability when this arises when it's time to start a family. So, like any other financial goal, I mean, I think we do need to consider that planning, in order to enable us to have that kind of moments of, you know, beautiful moments with our family when we're on maternity leave. And that will allow us to emerge back into our careers in a good way, it is also important for us to decide how long it is that we do want to stay at home. So I remember, I was quite adamant that I was going to use my maternity leave policy to the max, which was I think, maximum of six months. But you know, the financial implications of me doing that meant that there was going to be a shortfall. So in knowing that I remember doing some planning to actually see.
• 18:47
  Arthi Rabikrisson: Okay, so what could I do to actually ensure that I've got enough money to cover me for that six months, till I come back, you know, and I think that's kind of something we have to be mindful of that we need to look at these opportunities to save to cover these gaps. Or we've got these side hustles and other sources of income that we roping in very, very meticulously for that. And again, you know, as you said, Malika, someone like an accountability partner, like a financial adviser can really help with those financial planning tools, because they become part of the journey. And this is one of the journeys that you know, us as women that we do go through.
• 19:27
  Malika Petersen: Absolutely and I think it's important that we cannot emphasize that enough, right to everybody planning and organization goes a long way to making your maternity leave, which is a parenting experience, you choose to have less of a financial burden on the hustle.
• 19:46
  Malika Petersen: And of course, I want to reiterate, this is obviously not an in in isolation, right? I mean, this is all in collaboration in support of your spouse, potentially any other family members that are part of the ecosystem of support, both financially and personally.
• 20:05
  Arthi Rabikrisson: I mean Malika, we could we could talk about this particular one on that for ages, right? This is
• 20:08
  Malika Petersen: Ya look Ive to watched this happened in my such a, this is such a barby and an buzz topic for for so many of us. And i mean it's also making me think of, you know, consider the impact of the career woman who actually, you know, beyond maternity leave is actually stepping back from the career because the decision made is I want to raise my family for a few years. And then I want to return back to my career. And, you know, oftentimes women do feel under pressure to start from scratch in their career when they come back, right? Or to take a low paying job so that they can somehow balance career and household responsibilities now, you know, this is actually a pet peeve of mine I must be because I've watched this happen to very close friends of mine and you know, it takes its toll Malika on one psyche and even one's confidence.
• 21:01
  Malika Petersen: inner circle Arthiand I think it's it's it's another important topic that we probably can obviously get a whole episode about. I mean, it's, it's the the causes of those feelings and kind of I need to start at the bottom again, is so systemic, right. And I mean, for me, we probably need a whole episode on financial integrity and kind of the inclusion of of returning to work after after a hiatus a review of the is one thing I do want to say, right to to our listeners, is that, you know, whatever your personal preference in the in terms of how you navigate your parenting journey, your career journey, your financial planning around, this is absolutely integral?
• 21:49
  Arthi Rabikrisson: Will her or her?
• 21:51
  Arthi Rabikrisson: Agreed, agreed with all of that.
• 21:51
  Arthi Rabikrisson: And I think if our listeners also agree, and maybe, you know, listeners share feedback with us, if this is actually a topic you want us to focus on, you know, we'd be happy to share some of our thoughts around this in an upcoming episode, Malika.
• 22:04
  Arthi Rabikrisson: So yeah, so maybe, you know, do come back to us with some of your thoughts on this. Okay. All right. So, since we're talking life stages, maybe let's just round up this life stage trajectory that we've been following on the episode Malika, because you know, we cannot forget the young, bright eyed and bushy tailed graduates in the job markets. Yeah and also our young professionals who are in the early stages of their careers, you know, lovelies, we see you. Oh.
• 22:34
  Malika Petersen: The Good. All right. Good all day. It's really up to you. Right? And, and, you know, this might be one of the most important stages and I've got so many young nieces and nephews, and while they're not your cousin's kids, but But yeah, they you know, they're, they're like my little baby cousin, cousin. And they in this kind of important stage and what's important about the stages that it sets us up as women for our financial independence right now while and it allows us to kind of manage all of our life stages from Yes, the decisions we take. Yeah, in stage is so important. And the thing that you guys have that the rest of us can never get back it's time. Yeah, right. So the key word here ladies to all the young beautiful ladies out there is invest, invest and invest some more. I have a few Yeah, you can take a whole lot of risk, the thing that is going to pay off in the long term long term. And please, please listen to our previous episode on creating your your infinity legacy. Right that that's where you adopt as much as you can from our suggestion. And if you haven't heard it yet, please make sure to add it to your to your playlist. It's one of one of my favorites that Arthi and I have done.
• 23:59
  Arthi Rabikrisson: Absolutely.
• 23:59
  Arthi Rabikrisson: And you know, ladies know that you can shift the needle significantly, because you're taking deliberate action around your finances from today for both today and the future. I think that's the important thing to remember.
• 24:14
  Malika Petersen: Absolutely. And with that important point, we've reached that time again,
• 24:19
  Arthi Rabikrisson: Already
• 24:20
  Malika Petersen: I know time flies when you having fun. My parting shot it today is that as women we we have that x power.
• 24:31
  Malika Petersen: We've got that strength. We've got the power that allows us to achieve all of our dreams and goals, and most importantly, we have the power to influence exponential change in our families and communities. We've seen this so many times over the years that women are able to mobilize real true change we need power the next generation.
• 24:54
  Malika Petersen: So that they are able to take that to a whole other level.
• 24:58
  Malika Petersen: What about you Arthi any parting shots in your side?
• 25:03
  Arthi Rabikrisson: Definitely and allow for what you said. So that was beautiful Malika, I think I'm gonna end off with two really, really beautiful quotes that always resonate with me.
• 25:11
  Arthi Rabikrisson: And it's by Maya Angelou. So the first one is getting success is liking yourself, liking what you do, and liking how you do it.
• 25:25
  Arthi Rabikrisson: Okay, that is first one, and then the second quote is a woman who is convinced that she deserves to accept only the best challenges herself to give the best, then she is living phenomenally. So I thought that those were just so so relevant for what we're talking about today, just to empower us. So, you know, to own our beautiful woman of South Africa, Africa and around the globe listening to us, I really would love you to persevere, to grow your mindset of success, so that you can live phenomenally now and into the future.
• 26:04
  Malika Petersen: Beautiful sentiments Arthi , I feel inspired as well.
• 26:09
  Arthi Rabikrisson: Well, happy woman's went to you, Malika. And I'm so grateful for you being this phenomenal woman and co host on this journey that we're going together folding.
• 26:19
  Arthi Rabikrisson: financial well being for all of our listeners and subscribers on the swan effect podcast. Can you believe it? I'm sure you never thought this would happen.
• 26:27
  Malika Petersen: Yeah, I mean, we need to go International.
• 26:32
  Malika Petersen: Happy womens month Arthi. I also want to extend an absolute huge thank you to you, you you've made this journey possible for us together and you've allowed me to ignite and live my passion. So I'm so so glad to be able to partner with you on this and we rock it dont we.
• 26:52
  Arthi Rabikrisson: Oh, totally rocket who runs the world?
• 26:56
  Malika Petersen: girls!
• 26:59
  Arthi Rabikrisson: I defintley do until till next time.
• 27:04
  Arthi Rabikrisson: Ciao.
• 27:05
  Arthi Rabikrisson: Ciao. Ciao.
• 27:14
  Malika Petersen: Sharing is caring.
• 27:16
  Arthi Rabikrisson: And knowledge is power.
• 27:17
  Malika Petersen: Time for you to be daring
• 27:20
  Arthi Rabikrisson: and let your money confidence flew like a sunflower.
• 27:25
  Malika Petersen: Thanks for joining us. We hope you found these ideas and guidance useful
• 27:30
  Arthi Rabikrisson: do subscribe, share and write a review or send us comments. We would love to hear from you.
• 27:36
  Malika Petersen: Catch you on the next episode
• 27:38
  Arthi Rabikrisson: of the Swan effect podcast.
• 27:41
  Malika Petersen: Bye for now.
• 27:41
  Arthi Rabikrisson: Ciao.