Female Finances: Money Matters - Session with financial expert Jana from Finanzfriede
"Don't compare yourself to others! Decide for yourself what is best for you".
Jana from Finanzfriede shares her knowledge on the topic of finances and how to best use them for yourself and your own goals. Let's face it: we all want to have our finances under control, but we often shy away from facing it all and creating a truly transparent overview. We would all like to secure our financial future and not worry about our pension. But where and how do we start? In order to get off to the right start in our fight through the financial jungle, we had the pleasure of meeting Jana and talking to her.
Who actually is Jana?
Jana is a German management consultant in banks and an expert in the field of finance. With her own business "Finanzfriede", she wants to help women take control of their finances and develop a strategy together with them to define their goals and secure their financial future.
A little side fact about how the name Finanzfriede came about: Jana's second name is Friederike. She created her business name from her second name and the word "finances". Coincidentally “Friede” in German means “peace”. The goal is "Peace with your finances".
Jana opened our exchange with a quote from Rose Marcario. She was the former CEO of the Patagonia clothing brand: "Money is power and women need more of both". This means that women in particular can take their finances into their own hands and use them to shape their lives. Jana explained to us how women take finances into their own hands:
Jana: "It is especially important to start with your own financial journey and to start this journey confidently. Women should not forget that they are not alone and that they can start the journey together with a friend or their sister. Together we are strong!"
First things first - Start your journey
It is important to know what your current net assets are. You can calculate this quite easily:
All your accounts and tangible assets - all debts/loans = your net worth. Now you know where you stand financially and can start to put your finances in order.
4 saving hacks for beginners!
To secure yourself financially in the future, you should save some of your money. Jana has brought 4 saving hacks for beginners to help you establish your financial routines:
1. Build your nest egg
Unexpected situations can always come up, such as a broken dishwasher or necessary car repairs. You should prepare yourself for these. Jana recommends saving three times your net salary as a first guideline, but how much you actually save depends on your life situation.
2. Know your expenses
It is important to know what your fixed and variable expenses are so that you know how much you can save each month. With this overview, you can control in which areas of your life you would like to spend less and in which you would like to have more budget. The well-known Excel spreadsheet can help you with this, or apps that you can connect to your bank account. You can also start in a notebook or in your mobile phone notes. The main thing is to write everything down.
3. Save 10 %
In order to start, save 10 % of your income and pay it into your savings account. This will help you establish a savings routine in your daily life. You can adjust your savings rate over time to help you reach your goals. With 10 % of your income, you probably won't be able to fill your pension gap in the long run.
4. Pay yourself first
By paying your savings instalment into your savings account at the beginning of the month, you save for your future and yourself. By transferring the money directly, you won't be tempted to spend it elsewhere.
Girls wanna have fun
Jana emphasises that it is important to set goals that you enjoy and that you can emotionally identify with. This can also be a long-awaited travel destination or a weekend trip with your girls. You can distinguish between short term goals, medium term goals and long term goals, and use these as a basis for your strategy to achieve your goals:
- Short-term goals: What are your goals for the next 3-12 months?
- Medium-term goals: What do you plan to do in the next 3-5 years?
- Long-term goals: Where do you see yourself in the next 20-30 years?
Then define your budget for the individual goals: Ask yourself the following question: How much money do I need to achieve my goals? Overall, pay attention to the balance between "saving money for your goals" and "having money for fun in everyday life".
Invest your money for the future
If you want to invest your money for the first time, Jana recommends ETFs. Why? Because with ETFs you minimise the risk of losses due to the broad diversification, you don't have to deal in detail with the key figures of individual companies and you only bear low costs compared to actively managed funds. But it is important that you choose an investment that suits you and your risk profile. Another important tip from Jana: Only invest money that you won't need in the next 15 years.
What do we take away from the exchange with Jana?
1. Get an overview of your financial situation and put your finances in order.
2. Start your financial journey confident and strong.
3. Share with others and learn that you are not alone on the journeyto financial independence.
4. It's never too early to start planning for retirement. Know your optionsand your pension gap and take a proactive approach.
5. Every person is at a different point in life. So don't compare yourself to others and go your own way. Follow a path that feels right for you.
6. Finance can also be fun if you approach the subject step by step and realise that you can do it.
7. Start investing, even if it's small amounts at the beginning. This way you can learn and let the compound interest effect work for you.