Now more than ever, women are more educated, successful and empowered.
But are their finances in check?
Men or women, financial literacy is a crucial skill that needs to be learned from an early age. Sadly, this isn’t the case.
For years, we have seen our fathers bring the bacon home and make financial decisions for the household. This left women with very few female role models they could look up to and mold this necessary ability on.
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With the rise of single mothers and financially stable women who go to live off by themselves, day to day budgeting of their expenses is tracked but when it comes to long-term planning, that becomes an uncomfortable subject to touch.
By knowing how much you have and making the right financial decisions is not only empowering but it gives you control. It will help you take charge of your life and the future.
Here are some simple ways you can take control of your money and become financially savvy:
- Have a budget
No matter how little they are making, women have managed to allocate money aside for bills, necessities and still save.
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This is because women are more adept at budgeting than men are. By having an air tight budget, it gives you clarity on total income, your financial responsibilities and what is left.
By having a budget, it can help you achieve your goals by setting aside a certain amount of money towards that fund. If you’re not financially disciplined, make use of an app or authorise your bank to make those deductions before you can start spending.
- Create a plan
Now that you have a clear picture of your finances, it is important to have a plan. You need to think about your children, investments, retirement and other important things that you will definitely need.
This is like a roadmap that will help you stay on course. To make sure this works well, it would be a good idea to engage with a financial advisor or planner.
- Clear debts
Keep your debt under control by paying it off. You can start by living within your means even if that means you have to downgrade.
With the inflation rates rising especially now due to the unpredictable times we’re living in, the value of money is not the same it was two years ago. For this reason, you must constantly evaluate your income and cut your cloth according to your coat.
Saving is great but don’t let it end there. Your money needs to work for you. You must take the right risks and put your money where you can get returns.
Not taking risks and investing is equally just as dangerous and can cost you in the long run. You must diversify your portfolio.
- Have an account
You need to open a bank account and put some funds there for emergencies because anything can happen and you cannot always rely on your partner who may walk out or worse, die.
You should have your household expenses covered for six months at least by putting a certain amount aside once your income comes in.
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