Most women, particularly single women, get it wrong when it comes to money management. Why? The reasons could vary from lack of confidence, lack of financial knowledge and experience, lack of interest or even lack of time. But it’s time to pull our socks as women and adopt strategies that will help us manage our personal finance matters more progressively. Here are some financial advice for women that they should keep in mind.
Create a Working Budget
The first and perhaps the most important thing you need to do is come up with a budget. A budget is simply a written plan for your spending. When coming up with a budget, make sure you include your actual salary after tax and your expenses, including energy bill, phone bill, groceries, travel expenses, utilities, and rent. Once you list down your expenses, look for ways to reduce them and save a few dollars instead.
Why should you have a budget? A budget will ensure you always have money to take care of your needs and the things that matter to you. It will also help you to stay out of debt or get out of it faster if you are currently in debt. Most importantly, a budget will enable you to keep track of where your hard-earned money is going.
Find Smart Ways to Save
Anyone can penny pinch if they’re willing to be that obsessive and strict. However, take a step back and examine whether these savings are worth the effort. For example, driving an extra mile down the road because the farther gas station is selling gallons for two cents cheaper might not be a cost-effective way to save money. The same can be said for your health. Choosing which birth control should you use is a decision which needs to be made based on your personal health needs, not your personal finance options. There are ways to save money on living expenses which don’t require you to deprive yourself of basic essentials. Joining savings clubs, using discount services, and taking advantage of rewards points are just some of the ways in which women can significantly save without cutting back on what’s best for them and their families.
Avoid the Temptation to Spend on Flashy Things
Even if you receive fair pay for your work, payday comes with temptations to spend your money on expensive clothes and other fancy things. Don’t fall into this trap. Don’t overspend or take on excessive debt to buy fancy things that will lose value over time. By minimizing your spending, you will be able to increase your savings for building long-term wealth. You will also have enough money to spend on a meaningful asset like a home.
Build an Emergency Reserve
Come up with an emergency fund that you can easily access. An emergency fund will help you get through unexpected medical issues, unexpected job loss and other challenges that may affect your financial situation. If you are currently in debt, having an emergency fund will help you stop adding to your into your debt with each unexpected financial challenge you face.
Saving is good but make sure you invest more. Investing will teach you financial discipline, keep you away from overspending and give you another resource for your expenses and other life changes.
The tips we have highlighted above will help women become financially savvy and avoid overpaying for items. They will also enable you to make the right financial decisions.