As a woman, whether you’re married or single, it’s your responsibility to make wise money moves for the sake of your future. But this is easier said than done. When it comes to money, many of us have misplaced priorities. We end up going on shopping sprees instead of settling a long-overdue debt. There’s also a lot of pressure to live a certain lifestyle because our friends or people we follow on social media are doing it which only puts us further in debt. Making good financial decisions ensures you manage your wealth well and allows you to live comfortably according to your means. Here are some money moves every woman should make.
- Have Your Own Account
Many couples tend to have joint accounts, which is perfectly fine. However, it’s still important to have a separate account from your partner. This ensures that you manage your finances on your own and maintain a bit of financial independence. A separate account will also come in handy in case you have an emergency.
- Save, Save, Save
There’s nothing as too little to save. As soon as you start your first job, you should come up with a savings plan. Whether it’s cutting back on expenses or shopping during sales, these small actions contribute a lot to your money pool and help you get in the habit of saving. You can adopt the “income minus savings equals expenses” principle to figure out how much you should be spending on what. Finance: What To Consider When Choosing A Long Term Savings Account
- Reduce Debt
Debt is one of the biggest problems people face on the road to financial success. It’s important to know how to manage your lifestyle and treat debt. If you take a loan, ensure that you have a realistic plan on how you’ll pay it off. There are two well-known strategies for paying off debt. The debt snowball requires you to start with the smallest balance and the debt avalanche requires you to pay off your highest-interest debt as the priority. However, the most important strategy to pay off your debt is to stop taking on any more debt so that your money can grow. Finances: How You Deal With Debt Can Make You Or Break You! What Are Your Debt Habits?
- Take Interest
Financial management isn’t just for men. This is a vital life skill that every adult should possess. However, women tend to take a backseat in money matters especially when they get married. Having a say in your finances helps you become more empowered and confident in yourself. Additionally, whether you want to or not, you’ll be forced to make financial decisions at one point in your life. How To Navigate The Minefield Of Marital Finances
- Learn To Negotiate
This is another crucial life skill that will help you achieve financial success. As a woman, it’s easy to get the raw end of a deal, especially in the workplace. This is why it’s important to learn how to speak up for yourself. If you feel like you deserve more money or a promotion, don’t be afraid to ask for it just as your male colleagues do.
- Protect Yourself
Financial security is a must but women often neglect this. Remember that anything can happen. You may get divorced, lose your income, or fall seriously ill and your partner won’t be there for you. Therefore, you need to be able to stand on your own if this happens. One of the best ways to protect yourself financially is by having insurance. Make sure you have the important things covered such as retirement, medical expenses, and emergency fund.
- Make Investments
Investing your money is the best way to build your wealth. It allows you to generate additional income which can help you achieve your financial goals. For instance, you can use your investment income to fund different projects you want like buying a house, paying your child’s school fees, or starting a business. This also ensures that you stay debt-free.
We have some great articles that can help you along your financial journey. Check them out. First things first – Planning For The Future; How To Create A Financial Plan