Make the time to do some planning

By Bina Brown
For CNN

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(CNN) -- If spending your twilight years in the manner to which you have become accustomed is something you aspire to, then for most people now is the time to do something about it.

As a general rule, to generate an indexed income of $50,000 a year you will need to have accumulated $1 million in assets -- excluding the house you live in.

Women aren't alone in making the financial mistakes that mean they may never be financially independent, but they often have more reason to worry about it (Full story).

A starting point to financial independence is to recognize the mistakes many people make, and then do something about it.

Beyond the Numbers asked a panel of financial experts where they thought women in particular may be letting themselves down when it came to making financial decisions.

By far the biggest mistake was not taking the time to think about and plan for their financial needs. Women tended to put others first, such as family, work or friends.

Another common mistake was relying on a partner to meet their financial needs or to make the financial decisions.

According to the advisers, women tend to not think about the long term and how they are going to live when they eventually stop working. Where they have taken the time to invest, it tends to be in more conservative assets like property.

The consensus among the financial advisers was that rarely did they meet a divorcee or widow who didn't wish they had spent more attention on their finances.

Both partners in a relationship are encouraged to take an active interest in their financial affairs, particularly if there are assets in both names.

First step

For many people, just making time to address their financial affairs will be the first step towards independence. It means forgetting about work and family just for a minute, setting some goals and then developing a plan.

"Women are more likely to have an overdeveloped sense of guilt about their family and work commitments and the compromise is financial decisions," says Sally Manion, national head of the Australian-based adviser Ipac Financial Planning.

"Make time to sit down and optimise things like making sure you are not paying too much tax and not having money just sitting in an account. Not being properly insured and not considering what happens to your assets in the event of death are often things which are overlooked," she says.

While it may seem easier just to leave financial issues to someone else, it can be a dangerous course of action, especially if it leaves you and your family assets vulnerable.

It is not uncommon for women to go guarantor on a loan that is in their partner's name or tied to the family home.

If you are asked to sign something, then at least be aware of what it is.

While assessing what you are doing or not doing with your money you should also address the often thorny issue of spending -- or overspending as it can often be.

Spending plan

One suggestion is to establish a spending plan, rather than a budget. Set yourself goals and plan how you are going to achieve them (Full story).

The advisers agree the best way to save is to split your pay packet so you pay yourself first. It may be that you put aside a third for yourself, invest a third and pay the bills/mortgage with the other third.

Another area for attention is conservatism when it comes to investing. While most people are comfortable with borrowing to buy a car or a house, it's another step to borrow to buy shares.

Using a margin loan facility can greatly enhance your returns if the shares in which you invest go up. But be aware it can also magnify the losses if the shares go down (Full story).

For many people it may simply be financial laziness that is stopping them from taking the plunge to improve their knowledge of the investment choices that are available.

But the time it takes to educate yourself and change the ways investments are made may be worth it when you are thinking about retiring in some degree of comfort.

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