Money is, and will continue to be, the currency we use to exchange and purchase goods and/or services. It is crucial that we understand how money works, how to save and build financial growth.
It is no secret that women, myself included, have been hesitant to talk about money, or discuss anything related to money for decades. It has been discussions held in hushed tones but, in recent years, women have been opening up more about money in all aspects of life. Women have created a fast-growing community encouraging other women to better understand money and how to grow their financial position and earn more via work from home, creating side-hustles, and/or investing smarter.
We have to understand that each woman lives her own life and with that, spends her money differently to the next, so when the topic of financial position comes up in discussions, it is important to keep an open mind to what is being shared. Some women spend their money on themselves completely and that is great! Some women choose to spend their money on themselves and their immediate family /pets and that is also great! Some women prefer to save meticulously, and that too, is equally as great! Any combination of earning, saving and spending should be celebrated as long as it fits within your lifestyle and the realm that you can afford.
It is often seen that women spend their money on ‘luxurious’ or ‘frivolous’ items to create/maintain a certain image, but struggle to make ends-meet for the remainder of the month. Although this might be true in some cases, women across the globe have since evolved and have taken the initiative to take better care of their financial situation. Learning about money, talking about money and sharing knowledge about money has greatly impacted the female’s focus when it comes to their personal finances.
What are some tips that every woman can keep in mind to achieve financial growth and independence?
- ‘Savings salary’
- Increased earning potential
- Financial literacy
Firstly, it is important to understand your gross income and expenditure. It is important to budget accordingly and to stick to the budget. There are multiple different ways that you can set up your budget. Follow Money and Mindset coach @Laura_ann_moore on Instagram, and her podcast Mind Money Soul, for insightful financial advice on budgeting and saving.
Please note, budgeting should not feel like you are sacrificing your independence, but rather seeing it as an opportunity cost. What you are saving at the moment should remind you of the return on investment later. It is okay if you overspend slightly one week/month and correct it by underspending the next, but try not to make a habit out of overspending once and then underspending the next. Try to stick within your budget. If you find that you keep over-and-then-under spend, re-evaluate your budget. The key is consistency!
Looking at your income, you have to set aside money for need-to-pay sections such as rent, mortgage, cell phone bills, electric bills etc. Those are all recurring expenses that should be top priority when analysing your personal finances.
Secondly, and this is just as important as setting aside money for your expenses, is to pay yourself! Yes, pay yourself a ‘savings-salary’ to ensure you have money in your pocket for those rainy days. It does not have to be a large sum of money, but it should be consistent. Once you get into the habit of paying yourself a ‘savings salary’, you’ll find yourself one step closer to your goal.
Thirdly, is to invest. It is never too late to start your investing journey and you also do not have to invest large sums of money. Again, consistency is key. There are many investing opportunities available such as mutual funds, stocks, and real estate to name a few. Do some research to find out which form of investment would work best for you and your lifestyle that would assist you in reaching your long-term goals.
Another route to build financial growth is to increase potential earnings. What does that mean? You can pursue a higher education or develop new skills in order to save more and build wealth. It is important to note that knowledge is vital and that gaining knowledge in different fields could aid you in securing that dream job.
Finally, learning about finances can be daunting and confusing at the same time but it is important to educate yourself on the basics of financial literacy. Know when to seek professional advice as it can help you make informed decisions in order to achieve your financial goals.
It is imperative to save money and build financial growth for your well-being. By creating your budget and sticking to it, investing, increasing potential earnings and educating yourself about personal finances, you can take control of your future and achieve your financial goals. Keep in mind that financial stability and wealth takes time and patience, but with the right guidelines and strategies, you can secure your financial position.