On Your Own Two Feet Interview

Women need to plan, not react – that's the advice from financial adviser, Helen Baker, who says that women have unique money challenges compared to men and now is the time to get foundations in place to ensure you're set up financially. In the new book, On Your Own Two Feet: The Essential Guide to Financial Independence for all Women (Ventura Press, $32.99), Helen provides an accessibly written personal finance guide to empower women to take control of their finances.

Helen says that there's generally no fair go for the fairer sex when it comes to money, and explains the 6 most prominent money challenges that are (mostly) unique to women, and some tips to get ahead:

1. The gender pay gap/retirement gap
Aussie women today STILL earn 13.9% (or $242.90 a week full-time) less than men on average. It creates two levels of inequality – lower pay packets now, in turn meaning less money going into superannuation for retirement.

Helen's Tips: Women need to find the confidence to ask to be paid what they're worth. Get advice, and do so early. Many women don't seek financial advice, often because they fear the male-dominated finance world. So they miss out on super, tax and investment benefits. COVID-19 has demonstrated that people CAN work remotely. It presents an opportunity for more women – and men – to negotiate flexible working arrangements.

2. Lack of housing affordability
Sadly, women in their 60s are becoming the new face of homelessness. They tend to be single (either from relationship breakdown or their partner's death) or victims of domestic violence. Yet many are still working: it's not that they have no income, they simply can't afford to meet the high cost of housing on their own.

Helen's tips: Prevention is better than cure: buying property earlier in life can mean you have a debt-free home later on. But for women in this situation, look at your super – can you access it to for accommodation? It doesn't need to be huge, just secure and comfortable.

3. Women live longer
We all know women statistically live longer than men. That means that women generally need to fund more retirement years than men. Some women find greater autonomy as widows, able to travel and do things that their partner never would. But this too comes with a price tag.

Helen's tips: You can help your situation pre-retirement, such as by using catch-up rules to boost your super balance while you're still earning. But don't count on simply inheriting from your partner once they pass on – often, the money is gone from poor decisions or hefty medical bills.

4. Divorce settlement mistakes
Often during a separation, women accept an unfavourable settlement to put an end to the emotional trauma. And they often take advice from family and friends, who should be a source of emotional support, not money expertise. Another classic mistake women make is taking the family home they can't afford by themselves, or at the expense of any superannuation or other joint assets.

Helen's tips: Women can help safeguard themselves even before a relationship falls: be more active in joint financial decisions. Understand what you have before things turn sour.

5. The likelihood of single parenting
Single mums outnumber single dads around 4:1. If I were prime minister, I would make childcare free, because being able to fund childcare shouldn't be a motivation or restriction on working.

I always advise single mums to firstly change their mindset: be kind to yourself. They often try to maintain their kids' lifestyle, but one income simply can't provide the same as two. Plus, it's valuable to show your kids that money doesn't grow on trees.

Helen's tips: Devise a cash flow plan to make ends meet. If their father earns more than you, he should be contributing more towards school fees etc.

6. Caring for family members
Daughters and daughters-in-law commonly assume responsibility over caring for elderly parents. This often means sacrificing full-time work to juggle the needs of their kids and parents.

Helen's tips: A granny flat is one great option to explore – you can keep parents close, but still with their own independence, and remove commuting time and costs. Plus, you benefit from a higher property value and no ongoing retirement living costs. Just be sure to reach agreement on who owns what, if your parents pay for the granny flat to be built.

Interview with Helen Baker

Question: What originally inspired the idea of On Your Own Two Feet?

Helen Baker: On Your Own Two Feet has two aspects, one that is about actual advice, and the other is all the book side of things. I thought that if I wrote a book based on my professional knowledge, that helped women in the first world, we could use the profits to help women in the third world. On Your Own Two Feet was designed for women to get financial advice from another woman who actually works in the sector, someone they felt safe with and could trust. It's about being approachable, allowing clients to be transparent, having a very different conversation than what they would normally have that leads them to take action. I'd spent years seeing women making mistakes or starting later than they should and hearing them say "I wish I met you sooner". I wanted to get on the front foot (no pun intended) to help accelerate their positions to ensure women were enjoying life and making certain choices because they were financially healthy.


Question: What did you learn, about yourself, whilst writing On Your Own Two Feet?

Helen Baker: I had focused on the case studies that represented many women out there that I had met and worked with in a professional capacity and was looking outwards. What I didn't realise until later, is that the Foundations, the need to communicate technical speak in an easily understandable way (something I hadn't experienced), the Life Events that we all face, many are actually underpinned by my experiences i.e. my Mum becoming a widow when young, being made redundant, divorce, starting your own business, the sandwich generation etc. So, it's my professional side meeting my heart's desire, as a fellow woman, to help other women and to protect them from mistakes.


Question: Was it difficult reliving certain aspects/times of your life, whilst writing the book?

Helen Baker: Fortunately, I didn't find it too difficult because I was very much focused on getting the messages out there as a professional. But, by nature, I am quite open and very approachable. Being real I know many other women can relate. I think if it weren't relatable it could be just a boring finance book that no one wants to read, or doesn't read the whole way through, so it's great to hear feedback saying "I can actually hear your voice as I'm reading it", "it's so easy to read, I read it all in one sitting", "that happened to me too", "I didn't know that about you".

Question: What's the main message you hope readers take from On Your Own Two Feet?

Helen Baker: Take action! Like anything, we often don't know what we don't know. There are a lot of messages out there that are incorrect. I think people think financial advice is about selling an investment for commission – real advice is not about that. The book helps the reader understand how you set yourself up and stay that way, planning not reacting to various life events. I would like women to read it and think "oh that's why I need to get advice", or "ah now I get it/or now I know that, I can DIY from here", so with this holistic and relevant information, they can make an informed choice as to which direction they take next. It's about taking action, avoiding a mistake, protecting what you build, being safe.


Question: Can you share some tips with us featured in the book?

Helen Baker: I've written it in sections – Foundations, Different ages and Stages of life and how does that affect your investment approach, and Life Events. No one has ever passed my Five Foundations test (and that's ok), that's why I spell them out because the devil is in the detail. If you can get the Five Foundations right. then you can plan for things that come from left field such as losing a job or having an illness or worse. The "life events" is key, it's actually what life is about! Things happen. Good and bad. So, what do you do when those things happen? One tip I want to stress is DO NOT consolidate your superannuation without seeking advice from a professional. Can be one of the biggest mistakes you will make. Also check your insurances as there have been massive changes over the last 18 months – checkout opt-in, minimum balances, active contributions within your super fund. Other tips are – don't invest until you get those Five Foundations in place, otherwise you may be forced to sell, or if you have invested, tighten those up quickly; watch out for Sexually Transmitted Debt; understand pros and cons of certain strategies before you move ahead. As my Mum says, "if it's so easy why do you have to study all the time?", because it's not! Things change all the time – economy, legislation, life.


Question: What research did you do, prior to writing On Your Own Two Feet?

Helen Baker: I have worked (and still am) with women for over a decade as qualified financial adviser and I have spoken at many events. I've met sooooo many women, heard so many stories, seen so much of what life brings for all of them and their circumstances. If I marry that up with all of the information in media constantly trying to address the issues of finances for women, it's very clear that women need help. Whilst we did research statistics and pop some in the book, most readers don't want to read stats, they want to get to the heart of the issues so we haven't laboured too much in that area. Rather the easy to read, easy-to-relate-to real life case studies help readers absorb the information.


Question: What advice do you have for aspiring writers or artists?

Helen Baker: What is your why? Is it to be famous? Or is it because you have something significant to offer? If you are writing a book to make money, perhaps think twice, do your research because when you look at the costs, that hasn't been my experience so far. You need to sell a lottttt of books! My motivation was that if I sold thousands of books, that money could then go to rescue girls out of trafficking. Fortunately I get paid for my advice, I have my own business, so this is my way to help more women in the first world whilst also helping women and girls in the third world. If you are writing because you are passionate about making a difference, or you are a gifted, talented writer and money is secondary, go for it!


Question: What or who inspired your love of reading/writing?
Helen Baker: For reading, I've always been interested in biographies and auto-biographies because life/the truth is stranger than fiction as they say. I love finding out about people and their lives, particularly sports people. Seeing how they come through challenges and how they get to where they are. For writing, my English teacher at school would be very surprised I think to find out I have written a book, let alone two books, one in its third edition. Thank God for people like Heather, Laura and the latest team who have made it far more succinct. As you can see I write like I speak, so I'm probably not a "writer" per se. I certainly won't be writing a fictional novel haha.


Question: What's next, for you?

Helen Baker: Spreading the word. Trying to get the message out so that more women can take control of their finances asap and avoid mistakes. So whether that is women reading the books, the articles, watching the videos, contacting for advice,…... Whatever comes next, I still want to help women in the first world, and I still want to change lives in the third world. Who knows where we will be years from now, but I'm excited to see.


Interview by Gwen van Montfort