Financially Successful Woman: How to be Financially Empowered
“A woman’s best protection is a little money of her own.”
This week, we have a guest from Nelly about being a financially empowered woman. Find more of her work at My Way of Viewing.
The gender gap is everywhere. Women are usually paid less in spite of their male counterpart doing the same job. Finance and women are also considered to be poles apart.
According to a survey conducted by Forbes, around 58% of men were of the view that their financial understanding was up to the mark, whereas only 47% of women said so.
But, the situation is changing day by day. Women are now gradually climbing the ladder and gaining financial success.
Women no longer belong only to the support positions
The paradigm that women should perform only the support roles is changing. Gone are those days when women used to support their male counterpart so that the latter could excel in their career. Nowadays, women are capable of managing the so-called ‘men’ jobs along with managing their household.
And, when it’s a question about managing their personal financial situation, women take an active role in planning the monthly and annual household budget.
How to be a financially successful woman
Here are the habits of a financially successful woman which you should also practice.
Stick to a realistic budget
The ‘B’ word is the basic step in every financial planning. So, all you women out there, sit with a pen and paper, or open a spreadsheet, and plan a household budget.
To do so, list your overall family income and then list all your expenses.
One of the best habits of a financially successful woman is to set aside 20% of the overall income as ‘savings’ and plan the expenses with the remaining amount.
It will take some time to plan a realistic budget. It won’t happen overnight.
Take the responsibility to understand your financial position
Not only that, rather I should say that know about you and your partner’s credit score, how much you have in your savings accounts, what amount you should have in your emergency fund, how much you’re saving every month, and so on.
When you take the financial responsibility of the household, plan a financial meeting with your spouse or partner. It has to be at least once a month.
But, it is better if it’s once a week. Set a day and time when you’ll assess your financial matters and discuss what steps you need to take, assess your budget, and so on.
It will help you to adjust in other items if you overspend on one item. In turn, it’ll help you to maintain your overall budget.
Set realistic short and long-term financial goals
It is quite important to set financial goals - both short and long-term. You need a goal, a passion, to excel yourself to achieve that.
If you don’t have a dream or a goal, then how will you achieve that? So, set a goal with a time period within which you can attain that. There’s no point in setting a goal, which is too difficult to achieve. It will lead to frustration. Similarly, don’t set a goal that is too easy to achieve. It will not help you.
Do not feel ashamed to admit your mistakes
Do you know that it actually takes a lot of courage and confidence to admit that you’ve made a mistake? Moreover, once you know that you’ve committed a mistake, you can easily avoid it the next time.
So, if you make a mistake in planning your household budget, don’t feel bad to admit it in front of everyone. Doing so, your children will also learn to admit mistakes.
Children learn a lot of things from their adults. So, if you can manage your finances well, your children will automatically learn it from you.
Solve your debt problems, if any
Debt always hinders your ability to achieve financial empowerment. So, if you are in debt, especially credit card and personal debt, solve your debt problems as fast as you can. It will help you in concentrating on important financial matters like building a retirement fund, investing for a better ROI (Return On Investment), setting up an emergency fund, and so on.
To solve your debt problems, you can try DIY options, or you can opt for professional help if you want complete professional guidance to repay your outstanding balances.
Do not try to keep up with the Joneses
It is a common allegation against women that they shop a lot to keep up with the Joneses. Don’t do so. It is ultimately your money, so it should be solely your decision how you want to spend it.
Do not meet your friends at shopping malls. Doing so, you’ll be enticed to shop. A better alternative is to meet your friends at a park, go for a jog, met at a coffee shop, or go to your friends’ house.
Assign an amount for giving back
A financially successful woman is generous. She keeps aside an amount to give to a charity. By doing so, a woman understands the joy of living a generous life that helps to feel true happiness.
Earn some extra amount
If you have some leisure time, try to utilize it to earn a few extra dollars. Even if you’re a housewife, try to bring in some income.
You can use your hobby such as painting, teaching, etc. to earn a few dollars. When it’s the matter of managing personal finance, every dollar counts. So, whatever extra you earn, it’ll help you to improve your overall financial situation.
Teach your children how to manage money
A financially successful woman knows the responsibility to educate their children about the basic principles of managing personal finance.
So, right from the young age, introduce them to basic concepts. Make them distinguish between the cents. Also allow them an amount from which they will manage their expenses, save a certain amount, and keep some for charity.
Doing so they’ll understand the power of money, along with being a generous person.
Also, introduce them to the concept of the piggy bank.
When they are older, have them to do simple household chores and allot them an amount. This way, they will learn to manage personal finance right from the young age.
So, be proud of being a woman and start improving your and your family’s financial life.