We all want financial freedom...right?
But knowing where to start can be difficult after a break-up.
Meet Cathryn Gross Founder of Twelve Wealth
Financial independence once your divorce has been finalised, or even prior, during your separation, is hell scary. Especially if your ex-spouse was the main income earner. It may mean you need to look for work, or more work just to cover the bills.
Having an understanding of your income and expenses early on, makes a huge difference for financial control, and with that comes financial freedom!
When I was married I lived a comfortable lifestyle with financial independence. We worked hard to get there but we had financial freedom. Then the reality of a divorce where once there were two incomes to now only one hit hard especially when everyday living costs seemed the same, it can really put the once freedom to a halt. Unfortunately I didn’t halt at first as a single woman, and kept living a lifestyle I had become accustomed to. One that I was able to travel, have nice dinners, buy those beautiful outfits, and the list goes on. What happened the first year and half of being single with my income that had dropped $20,000 a year, plus losing my ex-spouse income, I had a credit card bill that I was always trying to pay off each month that wasn’t happening. I had put myself in a financial crisis, not the freedom I thought I would still have.
Having guidance early on from a Financial Planner can help you, with support and tips on getting the most out of your income.
A conversation with a friend had me starting to simplify my life, I consolidated the debt I had accumulated and stopped purchasing ‘things’, that’s right useless things that now I don’t purchase anymore, and now feels like a weight has been taken off my shoulders. I started to become more minimalist and what a difference it made and makes!
Having professional support during relationship changes is so important. Think about it, we choose a Lawyer to help navigate through the negotiations that comes with a divorce such as asset split and care for children, you can definitely use a Financial Planner to help you manage your money once you know the outcome in a healthy way. What I have learnt over the years of being independent is, it’s ok to ask for professional support and early on. The early days is the most important to help you navigate what you have and how you can control your finances in a controlled way, before it gets out of hand.
So with that I am so pleased to share with you Cathryn Gross founder of Twelve Wealth. We connected through Let’s Connect Women and Cathryn can relate to exactly how I was feeling. Being a single mum herself and in a situation of wanting independence not only in her personal life but financially, Cathryn was inspired to create Twelve Wealth by a deep desire to support others to achieve financial independence. Cathryn has an extensive background in banking and financial services and is committed to providing tailored fee for service advice, which places success for her clients at the centre of everything that she does. Cathryn is a financial planner who works to empower women. Women who are divorced, widowed, or single. As Cathryn’s business grows she is able to help more than just the single woman, but her main passion at heart is to help and support women just like us.
Thank you Cathryn for taking the time to share a little about yourself and your business.
I love that your passion is to support and guide single women to financial freedom. Can you share more about what Twelve Wealth offers?
Of course. At Twelve Wealth we offer holistic financial advice to our clients using coaching frameworks. We meet and talk to our clients in a really structured way quarterly which is all about making sure that we are always working with our clients to help them achieve their goals.
We typically start by working with our clients to help them get on top of their personal cashflow and ensure they have a clear understanding of their assets and liabilities. With that knowledge comes confidence, which we thinks helps with overall wellness.
Then we work to help our clients maximise how they use their financial and human capital. On the financial capital side we help them to maximise the returns on their super and investments, while ensuring that their investments are right for their goals and time and life. On the human capital side we will often be working with our clients on a back to work plan, this could involve networking plans, an analysis of strengths, getting your resume right that sort of thing . We also make sure they have insurances in place to ensure their families lifestyle is not badly impacted if they become unwell or pass away.
What do you hope for your clients to achieve when using your service?
Financial Wellness. I want my clients to get everything financial off their to do list, and just have a clear path to help them achieve their goals. I want them to be confident that they are in control of their finances, and I want them to feel that they are in control of their future with clear goals and a road map for how they will achieve them.
Once a divorce has taken place and the assets have been divided, what is one or two key things we should be doing to ensure we are on the right track to financial freedom?
The best thing you can be doing once you have a lump sum is to get really clear on two things.
Is Superannuation important early on? Or should we be trying to pay off a mortgage?
Superannuation is really important because it is such a tax efficient way to invest, and pays tax free income in retirement.
This said, I’m a believer that we need wealth inside and outside super to feel financially free.
I have a bit of a rule of thumb on this one. If you have your mortgage down to 50% of your home value, then it is probably a good time to start contributing more to super. As of 1 July 2017, you can contribute up to $25k year to super. So if your employer is paying $10k, you could put $15k into super on top of this.
Are credit cards really worth having?
The easy answer is No! But I know a lot of people love the frequent flyer points and free travel insurance on some of the cards…so if you must have a credit card, please pay it off in full each month.
I’m a big fan of the debit credit cards all the banks have now. They give you access to a Visa or Mastercard for online purchases but draw on money already in your account rather than credit.
Being a single mum, how do you ensure you and your children have all your needs met financially?
I am a big planner, which is probably not that surprising! But I do have a couple of practical tips that make it easier.
How can a single woman get back on track or ahead if one has lost nearly everything after a divorce?
Oh what a tough one this is! I think it’s about getting back to basics. Start out by working out if you are eligible for any additional government benefits with your change in circumstances. Then once you have worked out what you are earning from those benefits and your salary. Work out whether this covers your cost of living.
If it isn’t, then there are obviously some big decisions to be made. This might mean moving house to reduce your essential spend. It could mean doing some study to help you earn more.
The key here is getting clarity. That clarity will help put you in the position to make decisions that are right for you and your family if you have one.
I have tried doing budget’s over and over, but if I spent the way my budget looks I should be on track. Do you have any suggestions on keeping to a budget?
I recommend separate bank accounts for Essentials, Lifestyle and Savings.
This means saving first not last. I encourage trying to put 10% of what you earn to Savings at a minimum.
Your pay then goes into your Essentials account, and you direct debit your Lifestyle spending to a separate account.
How do you find juggling single mum and everything that comes with that, along with running a business independently?
I am incredibly lucky because my ex-husband is a great co-parent, and I think that makes my life easier now than it was when we were all one family unit. My ex has the kids every second weekend, which gives me time to rest and plan…he also takes them on a Wednesday night which allows me to work late if I need, or plan early meetings on the Thursday.
I find running my own business also makes it easier, as I have the flexibility to run my own calendar and don’t feel any guilt about taking time out when they are sick or for school holidays. I really make my business work for me, rather than me working for my business.
Was there one thing you can think of, you wished you had done differently going through your own divorce?
I’m really not one to live with regrets, so don’t really have any. We have a good divorce and I think being in control of my finances and not holding onto anger or regrets is a large reason that is the case.
What would you say your life mantra is?
My mantras change with my time in life. At present I draw a lot of confidence from this one:
If you want things to be different you have to do things differently...
For me this is about pushing myself outside my comfort zone and experimenting with new ideas. It also gives me a little more comfort with making mistakes!
What are you most excited about for the remainder of the year and next?
On the personal front I am excited about the big renovation of my home which starts in September, and my eldest child starting high school!
On the professional side, I am really focussed on building partnerships with other women who run their own businesses. They then become part of the board of advisers that I trust to work with my clients on an ongoing basis.
I have also started running Financial Confidence workshops for Women in large corporates. I would love to be doing more of these as the big audiences allows me to help more people in less time!
Lastly, your story has inspired me as a Break-up Recovery Coach, who or what inspires you?
What a big question! I am inspired by so many different people.
I just love Annabelle Crabb and Leigh Sales. Incredible journalists, great friends and real women. They have an amazing podcast Chat10Looks3 that makes them so authentic.
I also think Emma Isaac is pretty damn amazing. What she has done with Business Chicks while raising 4 kids is pretty inspiring.
And Nikki Gemmell…
The key theme here for me is women, who are at the fore front of their fields with multiple children! They are always in action, and have embraced the crazy. I try really hard to do just the same.
Having an understanding of your income and expenses early on, makes a huge difference for financial control, and with that comes financial freedom!
When I was married I lived a comfortable lifestyle with financial independence. We worked hard to get there but we had financial freedom. Then the reality of a divorce where once there were two incomes to now only one hit hard especially when everyday living costs seemed the same, it can really put the once freedom to a halt. Unfortunately I didn’t halt at first as a single woman, and kept living a lifestyle I had become accustomed to. One that I was able to travel, have nice dinners, buy those beautiful outfits, and the list goes on. What happened the first year and half of being single with my income that had dropped $20,000 a year, plus losing my ex-spouse income, I had a credit card bill that I was always trying to pay off each month that wasn’t happening. I had put myself in a financial crisis, not the freedom I thought I would still have.
Having guidance early on from a Financial Planner can help you, with support and tips on getting the most out of your income.
A conversation with a friend had me starting to simplify my life, I consolidated the debt I had accumulated and stopped purchasing ‘things’, that’s right useless things that now I don’t purchase anymore, and now feels like a weight has been taken off my shoulders. I started to become more minimalist and what a difference it made and makes!
Having professional support during relationship changes is so important. Think about it, we choose a Lawyer to help navigate through the negotiations that comes with a divorce such as asset split and care for children, you can definitely use a Financial Planner to help you manage your money once you know the outcome in a healthy way. What I have learnt over the years of being independent is, it’s ok to ask for professional support and early on. The early days is the most important to help you navigate what you have and how you can control your finances in a controlled way, before it gets out of hand.
So with that I am so pleased to share with you Cathryn Gross founder of Twelve Wealth. We connected through Let’s Connect Women and Cathryn can relate to exactly how I was feeling. Being a single mum herself and in a situation of wanting independence not only in her personal life but financially, Cathryn was inspired to create Twelve Wealth by a deep desire to support others to achieve financial independence. Cathryn has an extensive background in banking and financial services and is committed to providing tailored fee for service advice, which places success for her clients at the centre of everything that she does. Cathryn is a financial planner who works to empower women. Women who are divorced, widowed, or single. As Cathryn’s business grows she is able to help more than just the single woman, but her main passion at heart is to help and support women just like us.
Thank you Cathryn for taking the time to share a little about yourself and your business.
I love that your passion is to support and guide single women to financial freedom. Can you share more about what Twelve Wealth offers?
Of course. At Twelve Wealth we offer holistic financial advice to our clients using coaching frameworks. We meet and talk to our clients in a really structured way quarterly which is all about making sure that we are always working with our clients to help them achieve their goals.
We typically start by working with our clients to help them get on top of their personal cashflow and ensure they have a clear understanding of their assets and liabilities. With that knowledge comes confidence, which we thinks helps with overall wellness.
Then we work to help our clients maximise how they use their financial and human capital. On the financial capital side we help them to maximise the returns on their super and investments, while ensuring that their investments are right for their goals and time and life. On the human capital side we will often be working with our clients on a back to work plan, this could involve networking plans, an analysis of strengths, getting your resume right that sort of thing . We also make sure they have insurances in place to ensure their families lifestyle is not badly impacted if they become unwell or pass away.
What do you hope for your clients to achieve when using your service?
Financial Wellness. I want my clients to get everything financial off their to do list, and just have a clear path to help them achieve their goals. I want them to be confident that they are in control of their finances, and I want them to feel that they are in control of their future with clear goals and a road map for how they will achieve them.
Once a divorce has taken place and the assets have been divided, what is one or two key things we should be doing to ensure we are on the right track to financial freedom?
The best thing you can be doing once you have a lump sum is to get really clear on two things.
- Your cost of living.
- Your goals for the next 3, 5 and maybe 10 years.
Is Superannuation important early on? Or should we be trying to pay off a mortgage?
Superannuation is really important because it is such a tax efficient way to invest, and pays tax free income in retirement.
This said, I’m a believer that we need wealth inside and outside super to feel financially free.
I have a bit of a rule of thumb on this one. If you have your mortgage down to 50% of your home value, then it is probably a good time to start contributing more to super. As of 1 July 2017, you can contribute up to $25k year to super. So if your employer is paying $10k, you could put $15k into super on top of this.
Are credit cards really worth having?
The easy answer is No! But I know a lot of people love the frequent flyer points and free travel insurance on some of the cards…so if you must have a credit card, please pay it off in full each month.
I’m a big fan of the debit credit cards all the banks have now. They give you access to a Visa or Mastercard for online purchases but draw on money already in your account rather than credit.
Being a single mum, how do you ensure you and your children have all your needs met financially?
I am a big planner, which is probably not that surprising! But I do have a couple of practical tips that make it easier.
- I have a budget and know what it costs my family to live and what I need to earn to meet those needs
- I save first not last. 10% of everything I earn goes into a savings account for Emergencies and holidays….
- I know what percentage of my earnings goes to the Essentials in life like the mortgage, groceries, Utilities, Child Care etc. It’s really important to me that Essentials are less than 50% of what I earn so we can have a life!
How can a single woman get back on track or ahead if one has lost nearly everything after a divorce?
Oh what a tough one this is! I think it’s about getting back to basics. Start out by working out if you are eligible for any additional government benefits with your change in circumstances. Then once you have worked out what you are earning from those benefits and your salary. Work out whether this covers your cost of living.
If it isn’t, then there are obviously some big decisions to be made. This might mean moving house to reduce your essential spend. It could mean doing some study to help you earn more.
The key here is getting clarity. That clarity will help put you in the position to make decisions that are right for you and your family if you have one.
I have tried doing budget’s over and over, but if I spent the way my budget looks I should be on track. Do you have any suggestions on keeping to a budget?
I recommend separate bank accounts for Essentials, Lifestyle and Savings.
This means saving first not last. I encourage trying to put 10% of what you earn to Savings at a minimum.
Your pay then goes into your Essentials account, and you direct debit your Lifestyle spending to a separate account.
How do you find juggling single mum and everything that comes with that, along with running a business independently?
I am incredibly lucky because my ex-husband is a great co-parent, and I think that makes my life easier now than it was when we were all one family unit. My ex has the kids every second weekend, which gives me time to rest and plan…he also takes them on a Wednesday night which allows me to work late if I need, or plan early meetings on the Thursday.
I find running my own business also makes it easier, as I have the flexibility to run my own calendar and don’t feel any guilt about taking time out when they are sick or for school holidays. I really make my business work for me, rather than me working for my business.
Was there one thing you can think of, you wished you had done differently going through your own divorce?
I’m really not one to live with regrets, so don’t really have any. We have a good divorce and I think being in control of my finances and not holding onto anger or regrets is a large reason that is the case.
What would you say your life mantra is?
My mantras change with my time in life. At present I draw a lot of confidence from this one:
If you want things to be different you have to do things differently...
For me this is about pushing myself outside my comfort zone and experimenting with new ideas. It also gives me a little more comfort with making mistakes!
What are you most excited about for the remainder of the year and next?
On the personal front I am excited about the big renovation of my home which starts in September, and my eldest child starting high school!
On the professional side, I am really focussed on building partnerships with other women who run their own businesses. They then become part of the board of advisers that I trust to work with my clients on an ongoing basis.
I have also started running Financial Confidence workshops for Women in large corporates. I would love to be doing more of these as the big audiences allows me to help more people in less time!
Lastly, your story has inspired me as a Break-up Recovery Coach, who or what inspires you?
What a big question! I am inspired by so many different people.
I just love Annabelle Crabb and Leigh Sales. Incredible journalists, great friends and real women. They have an amazing podcast Chat10Looks3 that makes them so authentic.
I also think Emma Isaac is pretty damn amazing. What she has done with Business Chicks while raising 4 kids is pretty inspiring.
And Nikki Gemmell…
The key theme here for me is women, who are at the fore front of their fields with multiple children! They are always in action, and have embraced the crazy. I try really hard to do just the same.