Empowering Financial Independence for Women with Diane Watson | Ep289

Join us for a powerful conversation with Diane Watson, a seasoned financial advisor, as she uncovers the keys to financial empowerment and independence for women. With the holiday season upon us, it's the ideal time to reflect on financial wellness and dispel misconceptions about women and money management. Diane's expertise shines as we tackle historical and societal barriers that often undermine women's confidence in their financial abilities. She provides practical strategies to help you take control of your financial future, emphasizing the importance of education, awareness, and a proactive mindset. We'll also explore how childhood influences shape our relationship with money and break down myths about women and mathematics.

In this insightful episode, we place a spotlight on crucial financial protection strategies for self-employed women, including critical illness cover and income protection, to guard against health-related financial challenges. Diane shares the importance of planning for long-term security, highlighting the value of state pensions, life insurance, and the necessity of having a will, especially in blended families. These discussions underline the significance of being prepared and the peace of mind that comes with financial readiness. Whether you're self-employed or navigating family dynamics, our conversation offers actionable advice to help you build a secure financial future. Don't miss the chance to connect with the SheCanProsper platform for personalized guidance tailored to your unique financial journey.

Get your Copy of She can Prosper
State Pension Forecast
Making a Will Citizen's Advice
Life Insurance talk to Diane She can Prosper
Diane on

The 5 Power Pillars of Podcasting 12th Dec 1pm UK register here > BOOK

www.donnaeade.com

Buzzsprout - Your go to Podcast Host!
Start for FREE

Disclaimer: This post contains affiliate links. If you make a purchase, I may receive a commission at no extra cost to you.

Chapters

• 0:00 Financial Wellness and Women's Money Mistakes
• 9:52 Financial Protection for Self-Employed Women
• 18:38 Planning for Financial Security and Family

Transcript

Donna Eade: 0:30

You're listening to the Mindset in Action podcast, the place to be to grow and streamline your business. I'm your host, donna Eade. Let's jump into the show. Many successful career women are having important life decisions made for them. Diane Watson, welcome back to the podcast. Everybody, I'm so glad to have you here today. We're going to be talking about money. You know, I like the money chat, so we are going to be talking about money today and I am not the expert, so I have brought an expert in Diane Watson, welcome to the podcast.

Diane Watson: 1:12

Welcome and great to meet you and to be able to share some stories this morning.

Donna Eade: 1:17

It is really good to have you here and I think, because we are in December now, this is a really good point in which people are looking at, you know, the new year coming and obviously Christmas is like literally round the corner at this point and people often are feeling the crunch at this time. So I think it's a really timely conversation to have to sort of have a little bit of a deeper dive into finances, rather than working from a place of panic, which I think a lot of people do around this time of the year. You know, christmas is on the credit cards and how are we going to survive January and all of that jazz. So we're looking long term here when we're having this conversation, and what we can do going forward. But before we dive into all of that, goodness Diane, tell people a little bit about who you are and what it is that you do.

Diane Watson: 2:07

Okay, so I'm Diane Watson. I'm a career financial advisor, run my own business. I've been a principal partner with St James's Place. I joined them in 1999. Before that I ran my own business. Outside of that I also have a separate business which is called she Can Prosper and that's really my give back to try and encourage women to really understand where they're at and to make any choices that they might need to make to make sure that they're on a secure financial footing. So I run events. I've written a book and it's really my rallying cry to all the women out there to make sure you're not one of those people, those women that I've met who says if only I'd known, everything would be different. And that's really what's motivated me for the last four years to keep that project running. Yeah.

Donna Eade: 3:02

I love it and to me it's like it's amazing how things take so long when you're looking at generational change, because it wasn't too long ago where women couldn't have their own bank accounts and they were fully dependent on their husbands and you know, we were getting married off at a young age because our dads didn't want no responsibility for us anymore, and that was before my time. However, it is one of those things that it's still taken so long for women to get the financial education that they deserve, to really sort of understand and be financially independent themselves. It's bizarre to me.

Diane Watson: 3:48

I mean there are still so many women who aren't financially mindful, and some of that is to do with what happens in our childhood. So I think if we are brought up to, if we're told as little girls that money is what men sort out and you don't need to worry about that, I think that can play out in how we view money later on in our lives. Obviously it depends on the kind of relationship that you're in and how the dynamics play. It depends on the kind of relationship that you're in and how the dynamics play out in that, because we know that money is a great control tool. So we know that in some relationships money is the power that men control women by, which is obviously can come at a huge cost.

Diane Watson: 4:28

I also have this theory that we girls think that we're not that good at maths and we kind of relate maths to money and therefore we feel uncomfortable and fearful a little bit because we know we wouldn't really understand the money because we didn't really get on with maths at school. And that's not true. But it is a limiting belief that lots of women have. And you know, if I can do what I've done having had those feelings myself, then all of us can make sure that we understand our numbers.

Donna Eade: 5:07

Yeah. Yeah, I have to say I'm an outlier in that respect because I really enjoyed maths. I struggled with it towards the end of school because I was put into a higher tier, because I showed promise, but then I was like fighting to sort of stay above water in that sense. But I've always loved numbers and playing with budgets and like, ok, if I put this much money here, and how much am I going to have at the end of the year if I keep putting it and all of that. I love all that stuff.

Donna Eade: 5:31

But I understand that for a lot of people that's not the case for them, that stuff, but I understand that for a lot of people that's not the case for them. So that's why we're having this conversation, because it's so important to actually have a good understanding of finances and the money that's coming in and going out of your house and your business and sort of the lines can cross there. When you're self-employed, the money's all going into one part and where's it all going and all sorts of things. And we're not going to dive into business finances, particularly today. But I really wanted to talk about financial wellness and what that looks like for people. So, diane, what does financial wellness. Look like to you.

Diane Watson: 6:07

So I think financial wellness is all about being financially okay.

Diane Watson: 6:14

It's not about not addressing the issue and hoping that everything's going to be fine, which I think a lot of people do.

Diane Watson: 6:21

They run up debt on their credit card and they just kind of hope that it will somehow transform itself and it doesn't. So it's about really understanding your situation and being more proactive in terms of managing that and making sure that there aren't any surprises, because there's nothing worse than not knowing something and then it coming and, you know, giving you a massive, massive shock down the line, or maybe when something untoward happens because things happen in our lives, you know that are unexpected and they come in the form of things like divorce and bereavement and illness and children, and you know mortgage interest rates going out and you know retirement age is actually moving over the last few years to be, you know, even later, and we just need if we are, if we are aware of and we are in control of our own situation, we are more likely to have a more positive outcome, absolutely yeah, yeah, and I think that's something that we don't necessarily consider when we're looking at our financial wellness.

Donna Eade: 7:27

Is those things that you were saying in the beginning there? Divorce, bereavement, these are things that you don't necessarily automatically think are connected to your finances and can impact your finances. But well, anybody who's been through a divorce will know that that couldn't be further from the truth and could really leave you in a big hole and devastation, which is not what anybody wants, and you never want to go into a marriage thinking it's going to end in divorce and I need to protect myself. But the fact is the stats don't lie. You can only control your behavior. So, whereas you might never want to get divorced and wouldn't do anything, it doesn't mean that your partner is going to be the same throughout your relationship, because you can't control them. They are their own person and you just have to be conscious of the fact that there is a possibility of it, prepare for it and then, if it doesn't happen, all good, but if it does, you're all good, you know so it's really important.

Donna Eade: 8:32

So I wanted to talk about the sort of biggest mistake that you see women making with their finances and I know I do have guys that listen and sometimes we do go down the female only route with some of my episodes, but majority of my listeners are women and I always think that it's good for the guys who do listen to hear from the female perspective and to hear what their partners, their mums, their sisters might be going through, to kind of understand it from the other side as well. So, guys, if you're listening and you continue to listen, I appreciate you taking the time to actually have a listen in. But yeah, what are some of the mistakes you see women making with their financial security?

Diane Watson: 9:11

A light touch involvement with their finances. Leaving somebody else to be making those decisions and those plans for you can ultimately cost you dearly. You know, if you're not aware of what's going on behind the scenes and, for example, you do end up getting divorced, you know, you are more likely to find yourself in a more difficult situation because you had no idea. Lots of women have no idea about what goes on with regards to finance in their homes because someone else does it for them. So I think, understanding your situation, you know and understanding, for example, if you're employed, you know what your pension scheme provides you with. I say to people every day what would happen at work if you became ill, and most people have got no idea. They don't know.

Diane Watson: 10:01

You know and and and it's a bigger problem if you're self-employed, because we know that more and more women are running their own businesses, which makes them more vulnerable because they don't have that large corporate backup to help them and to step in to whatever extent that occurs.

Diane Watson: 10:19

So you know, if you're an employed woman, find out what your long-term six-payment strategy is and make sure that that's okay for you. Find out if you've got life insurance that would pay out to your family if something happened to you. Understand more about what your pension benefits are going to be. Make sure you join the pension scheme I mean, lots of people don't and if there are more contributions that you can get from your employer, if you pay more yourself, then think about doing that. So, really understanding if you're self-employed, it's even more important because you are so vulnerable if you get ill, for example and you know one in two people now get cancer, which may or may not be something that you, you know you end up having, you know dying from, but it certainly will impact on your ability to work if you're running your own business. So, you know, understanding how you would be able to to cope and for how long, is really really, um, you know, important. Yeah, yeah.

Donna Eade: 11:32

So looking at that, just sort of coming onto the business side for a second, talking about sick, we don't get the sick pay that you know, employed people get. So what is something that we could do to kind of help us out in that respect? Like, when we're looking at the money coming into the business, what should we be looking at doing with it to sort of, you know, maybe counteract that a little bit or at least be prepared in some way for something like that?

Diane Watson: 12:04

So there are a couple of things that you can look at doing. I mean, obviously, if you get a critical illness, you can have some cover that would pay out a lump sum which could be used for whatever you feel is important. And remember let's talk about cancer no two people's cancer diagnoses are the same. Some people might want to pay off their mortgage. Some people might want to fund treatment that isn't readily available on the National Health Service. You know, some people know their life expectancy is shortened and want to enjoy their lives whilst they've got it. So that is something that I would encourage all people to look at. And it's a lump sum and it's payable on diagnosis of a range of illnesses, of which cancer is one, but there are lots of others like heart attack, stroke, you know, things like Parkinson's disease, losing your sight, losing your speech, your hearing all of the things that may very well prevent you from working. So it's really there to provide financial support and if you don't need it because you're back on your feet very quickly, then it's a bonus really.

Diane Watson: 13:13

The other thing is something called income protection, which would provide an income for the time that you're unable to work, and that has different periods when it kicks in, and the shorter the deferred period, the more expensive it is.

Diane Watson: 13:28

That covers a wider range of things, because you could have a really bad car accident, for example, or you could suffer a nervous breakdown.

Diane Watson: 13:35

So there are things that are covered with that, that stand in addition, and it's an income and it stops when you go back to doing your job or running your business. Ideally we we all ought to have both, because you know, and I've had clients who've had payouts for both because of the illness that they've had. I mean, there is nothing worse than meeting someone who has had a health diagnosis that is going to stop them working, and I've had people in their 30s been diagnosed with an illness that they've never, ever worked to gain. We don't want anybody to be in the situation where they're already stressed because they've been diagnosed with a serious illness and then they can't work. And then there's a financial consideration, and I do a lot of work with an organization called Maggie's and they run centers near oncology units in big hospitals around the UK and they were telling me that during the cost of living crisis they had self-employed people who were cutting short their chemotherapy because they had to go back to work.

Donna Eade: 14:45

Oh, my God.

Diane Watson: 14:47

You know that is absolutely terrible to think of that. So anything that we can all do to avoid ourselves being in that situation. It isn't cheap, Obviously, because you are way more likely to have an illness than you are to pass away, but it does give you that support and that ability not to be diagnosed with something as serious as a form of cancer and then also be sitting there thinking how on earth am I going to pay my bills?

Donna Eade: 15:30

And having to make that decision between treatment and paying your bills. And I've always said to like I've had a big sort of epiphany in the last couple of years where I've been really focusing on my health and it's like if you haven't got your health, you haven't got anything Like you have to be well, you have to be here to enjoy life. So whether you've got money or not, if you're not here, it's neither here nor there. So it's like paramount to me that people look at their health and put their health first. It's like paramount to me that people look at their health and put their health first. And part of that has got to be being financially sensible to enable you to be able to do that.

Donna Eade: 16:18

So where you were talking about the insurances, there I think a lot of times we don't like insurance because it's one of those things that you pay for. You pay a lot of money for in some cases and you might never use it, and it's like, oh, it's like a bugbear of people's to actually spend out money that they're not getting anything back from. And I understand it, I really do. But if you do need it, it's that, what if? And heaven forbid you're in that situation. But if you do need it, it's that, what if? And heaven forbid you're in that situation. But if you do need it, at least it's there. And where you were talking about the um, the income protection being a deferred payment, I guess that's where the whole you know have six months worth of your living expenses in your bank account. Cash, liquid cash, comes in, yeah, 100.

Diane Watson: 17:03

Yeah, I mean you wouldn't drive a car and say I'm really disappointed, I haven't written it off because I've not had a payout on my insurance, right? And I think that's why you have to switch the mindset around that, because you know, when I, when I turned 60, my guys at the office said to me well, but you're really disappointed that you've never had a payout on your critical illness plan, I was like absolutely not, because and it was a lot of money over many, many years but wouldn't you rather have the peace of mind of knowing that it was there in the background? You know, it's like it's like any insurance that we have. We don't want something to happen so that we can have a, make a claim. We want it to be there to provide what we need if something goes wrong, and that's why we have it. So it's just about flipping that mindset really.

Donna Eade: 17:54

Yeah, yeah, yeah. We could go down a whole rabbit hole with all of that jazz, but we won't. We won't today. So I think for me, one of the things that really stands out when I talk about money with people is the simple, easy things that people aren't doing that they could so easily implement. So are there three things that you could give us that we could take away today and go? Do you know what? I might not know much about my finances, but now I'm going to actually take the time to look into it and get to grips with it. But I know that I can do these three things right now and it's going to make a difference to my financial security.

Diane Watson: 18:37

So I mean. Something that amazes me is how many people have no idea what the state pension is going to provide them with, and the relief on people's faces when they find out that it's actually, you know, in the 10,000 plus amount and that if they're living with someone else it's double that amount.

Diane Watson: 18:56

It makes people feel less pressured about the future, less pressured about the future, so I would say to everybody go and get a state pension forecast and understand that number, Because I think one of the fears that people have about am I going to be okay in retirement is I won't have enough. So just getting that information and also finding out, whatever it is you're, how, where that's going to lead you. So more information around that.

Donna Eade: 19:26

That's a really that's a really important one I want to say, just because you know, a lot of mums take career breaks and you need to know whether you've actually put enough in to the state pension and you can, I think, pay dividends for fill the past six years. So if you've got gaps in the past six years, you can actually make payments to actually bring that up. So you get your qualifying years. But you have to have a certain number of qualifying years, don't you? And if you've had babies, oftentimes that kind of reduces the years that you've got there. So that's an important one to consider.

Diane Watson: 20:02

So understanding those numbers and if that gives you comfort that you're, you know, if you're in a relationship, you're living with someone that there's two of you work out what that is and that might take some pressure off you, and actually taking pressure off people often makes them more motivated to take action. So that that's one of the things you know. The second thing is is my family going to be okay if something happens to me? So you know we've talked about critical illness cover, but just making sure that you've got enough life insurance you know, to provide for if you've got young children. You know, my friend's husband passed away last year and the first thing she said to me is will you come and tell me whether I'm going to be financially okay? And we did the. You know we knew that the mortgage would be paid off, but obviously he had, you know, he, he, his salary disappeared.

Diane Watson: 20:51

And just being able to know that you're going to be okay, because in the time, in the, at the time of a tragedy, you don't want the situation to be made worse by being financially impoverished. And life insurance is incredibly cheap. You know it's incredibly cheap and it will make a huge difference if something happens. So you know, if you're employed, see what you've got from work. If you're running your own business, you could do it through the business. There are different plans that you can take out that will give you that peace of mind, especially if you've got, you know, young dependent children yeah um, so so that's the second thing, I mean my other big passion.

Diane Watson: 21:31

I've got lots of passions, but it's the will. You know, have a will because people have no idea about what happens and the complications if you die without making a will, and because we have more blended families than ever. You know, we have more people living together with their own children, with stepchildren, with half children.

Donna Eade: 21:54

Just making sure that you know that your wishes are going to be carried out very clearly is something is to happen, would happen to you, is is also really, really important yeah, yeah, the and that's another thing that people don't think about in terms of their finances is what a will actually does, and the power of attorney and executors and all things and and a will can kick in before you die. So if you get an illness that is like you you aren't capable of making decisions for yourself, your will could kick in prior to that. So if you haven't sorted it out, you could end up in a right state. Who knows where you'd end up?

Diane Watson: 22:37

um left to other people's. Yeah, and if you've got sorry? If you've got sorry, if you've got children, the only people that can appoint guardians for your children are yourself and your partner, or the courts. So if you don't appoint guardians for your young children and something happens to you both you know you're in a car accident then someone else is going to decide where your children are going to live. And often you know the dynamics of families are that you've got parents-in-law parents. Both sets of parents would like to. You know it's very messy.

Donna Eade: 23:07

Yeah.

Diane Watson: 23:08

And often people you know, my own daughter, my grandson, is going to be looked after by his godfather, you know, and they're very clear about why they want that to happen. They want him to stay in London, etc. You know, obviously I'm already in my mid-60s and I'm single. So you know, if they hadn't written that into their will, then there would be lack of clarity around that. So I think it's a good thing to do. Yeah, yeah definitely, definitely.

Donna Eade: 23:40

Well, we shall leave some resources for people in the show notes so you can go and check about the three things that you can do. Go and check your pension, life insurance and your will. None of that involved a calculator. Just saying so, just because we're talking money doesn't mean that it's all got to be about calculators and maths. So go ahead, look at the resources in the show notes, make those action steps and if people want to connect with you, diane, where can they find you and how can you help them?

Diane Watson: 24:31

So the best thing to do is to connect via shecanprospercom, so www. We've got lots of resources and information on there and they can reach out to me through that platform in the first instance. In any event, brilliant.

Donna Eade: 24:45

And how do you usually work with people through that platform?

Diane Watson: 24:50

So people will get in touch and have specific needs, and so the starting point would usually be a no-obligation call or a Zoom call just to chat and see whether or not it's something that I can help them with, and then, if they want to work with me, we obviously need to do a detailed review. They need to do the homework, they need to get the information that they haven't got at their fingertips, which is always the starting point, and very few people do know that information. That's a good starting point for them because they have to go and do the work, and lots of people have had different jobs and they've got different pensions, for example, were and lots of people have had different jobs and they've got different pensions, for example, but they've accrued along the way. So it's it's a good place for them to start and get on top of the information that they need to have really, and a lot of people don't have it to hand yeah, yeah, I think pensions is a big one.

Donna Eade: 25:41

That's a big wormhole that we could go down, because, as business owners, you often well, you don't have an employed pension. But I've actually recently taken on a part-time role, so I'm now back into a company pension, which is great for me. However, I had an incident. I was like, well, hang on a minute. I got my first pension when the government implemented the auto-enroll, so my work at the time didn't have a pension and they auto-enrolled everybody onto this first iteration of the pension scheme.

Donna Eade: 26:17

And what I remember about that time is being told that this is your pension. It's not the company's pension, it's your pension. It follows you around. You don't have to worry about losing it and having many pension pots all over the place. And what I have discovered is, since starting this new job, that that isn't the case at all and you still end up with pension pots all over the place. The only difference now is you can actually bring your pensions over to your new pension without paying any penalties, and that's what they meant.

Donna Eade: 26:49

So I was just like, well, that was very much false advertising. But I can understand why it's done that, because the administration nightmare of a company trying to deal with like 30 different pensions for 30 different employees would be ridiculous. So I get it, but that's not how it was advertised. So definitely something to look at there, and we will leave all your links in the show notes as well, so people can reach out to you. But I do have, before we shut off for today, I do have my little quick fire round that I like to do to help everybody get to know my guests a little bit better. So if you're up for it, diane, I've got a few questions to ask you, absolutely Okay. So number one is what is the podcast you like listening to the most?

Diane Watson: 27:34

So I love listening to podcasts and I love Steve Bartlett Diary of a CEO. I mean he has such interesting guests. I've learned so much in the last few months about health issues I mean you know the menopause. I mean I listen to a fantastic one about divorce, anything to do with health and well-being. I love them all. They're amazing. So that's kind of the one I go to the most when I'm thinking about what podcast? Usually when I'm on the train actually and I do actually listen to podcasts in the car- yeah me too, as as well, and uh.

Diane Watson: 28:12

So yeah, I do like his podcasts. Yeah, you're not the first person.

Donna Eade: 28:16

I really feel like I'm missing out on an SEO trick here. I should start putting all these answers in the show notes so that I can keep tagging diary of a CEO. Yeah, exactly, exactly, oh, dear. And then what's the book that's made the biggest impact on your life so far? So, obviously you've written your own big book, which will have had an impact, but what's the book that you've read that has made the biggest impact?

Diane Watson: 28:38

Well, I mean, that's a really challenging question for me because I did English at university. So I've got at least a thousand books in a bookcase in my house here. So I've got at least a thousand books in bookcase in my house here, and so that really stopped me in my tracks and I had a few thoughts and I was really struggling to choose the book. But I went back to the book that I read when I was 10 years old the first serious book I ever read which was Wuthering Heights by Emily Bronte. As a sort of 10-year-old girl, just the passion and just everything about that book completely captivated me. You know the relationship between Kathy and Heathcliff and I live in Yorkshire so I've been to the Parsonage where the Bronte sisters wrote their books, where the Bronte sisters wrote their books, and it's just an amazing, amazing story and as a 10-year-old girl, you know I was completely captivated by it. So that's the book that I'm going to say.

Donna Eade: 29:40

And I love it when a guest actually says a fiction book rather than like a self-help book, because it just shows that you know, it doesn't matter whether it's fiction or non-fiction, the impact that a book can have transcends that the narrative. That's there. I would just say like it's amazing and I love that. And I had Joe came on and said Anne of Green Gables, which we bonded over because that was one of my favourite books growing up and really did impact me as well. So I love that, I love that. And what is your go-to snack when you're in a hurry?

Diane Watson: 30:11

Cashew nuts.

Donna Eade: 30:14

Oh, that was quick off the bat. Okay, very healthy.

Diane Watson: 30:18

I like cashew nuts a lot.

Donna Eade: 30:21

Yeah.

Diane Watson: 30:22

And a quick handful and they're quite filling and I kind of reason that they're quite good for you as well. So it wouldn't be a bar of chocolate, it would be cashew nuts. Love that.

Donna Eade: 30:33

Cashew nuts dipped in chocolate Now, that would be a good one. I'm a choc-holic. And then, finally, what is your ultimate me time thing to do?

Diane Watson: 30:43

So I book myself every year on a retreat, um, maybe, maybe more than one. So this year I've done a rewilding retreat. I went wild swimming in the lake district and hiked up a Wainwright um mountain and, and, and then I went on a detox retreat in at the end of August, which was fantastic, and there were I think there were 18 people on that retreat, mainly women. It was a great networking opportunity. Actually, it's lovely to feel the love in the place. We had a cookery demonstration every morning, lovely spa treatments. I took my books, so I always do. In fact, I'm on a retreat retreat. I'm going on, joe. Do you know? Joe Talker? Yes, a retreat next year in France, oh, lovely, um, and I've got another one booked, actually rewilding trip, in Wales. So, yeah, that's my kind of me time, yeah, yeah.

Donna Eade: 31:41

I love that. I love that lovely little shout out to Joanna there. I love, love that and then, yeah, so that's it. That is it. No more questions, no more questions. That is the ultimate me thing to do and I think it's a wonderful thing to do. I would love to do a retreat, so like on my bucket list of things that I would love to do. So I love that you make it such a main part of your staple thing to do in a year, your staple thing to do in a year. So, um, that's great. Where do you hang out on social the most? I would say linkedin. Yeah, yeah, I love that platform.

Donna Eade: 32:13

All of diane's links will be in the show notes, guys, so please don't do go and check those out. I will link her book onto my bookshelf so if you want to go and get the she can prosper book, you can go and get it there. You will also find um diane's book of choice on that bookshelf, along with all of my guests' books that have been mentioned. It is a growing bookshelf not quite as many books as you've got there, diane, but it is a growing bookshelf and I love it as a great source of interest and intrigue for people to go and check when they are looking for a new book to read. So go over and check that out. Thank you so much for your time today, diana.

Diane Watson: 32:48

It's been a lovely chat with you, thank you, it's been amazing and thank you for having me.

Donna Eade: 32:53

You're very welcome and I will see you in the next one, guys, bye for now.