As a woman, it’s our responsibility to make wise money decisions for the sake of our secure future. But this is easier said than done. When it comes to finances, many of us do not even know the basics. Making good financial decisions ensures managing your wealth well and allowing you to live comfortably according to your means. In order to have safe and comfortable life; there are some important money moves all women should make.
HAVE YOUR PERSONAL BANK ACCOUNT
This is by far one of the most important money move for any woman. It is extremely important to own a personal bank 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 of an emergency.
There’s nothing as too little to save. As soon as you start your first job, you should chalk out a saving plan. Whether it’s cutting back on eating out or shopping during sales, these small actions contribute a lot to your money pool and help you get in the habit of saving.
Debt is one of the biggest problems we all face on the road to financial success. It’s important to know how to manage your lifestyle and reduce debt. If you take a loan, ensure that you have a realistic plan on how you’ll pay it off.
Financial management isn’t just for men. This is one of the vital life skill and an important money move that every adult should possess. However, women tend to be laidback in money matters especially when they get married. Having a say in your finances helps you to be confident in yourself. Also, whether you want to or not, you’ll be forced to make financial decisions at some point in your life.
This is another vital life skill. 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.
Financial security is mandatory but women often neglect this. Remember that things can go wrong. You may get divorced, lose your income, fall seriously ill and your partner may pass away. 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 basics covered such as retirement, medical expenses, and emergency fund.
Investing your money is the best way to build your wealth long term. It allows you to generate additional income which can help you achieve your financial goals fast. For instance, you can use your investment income to fund different goals like buying a house, paying your child’s school fees, or starting a business. This also ensures that you stay debt-free.
BE WELL INFORMED TO TAKE OVER
Women, on average, live longer as compared to men.
If you’re not already handling the family budget, prepare to take over. Assume that you’re going to be around for a while, and that you will one day need to take over financial planning. Use this time to learn how to do it correct.
There are excellent resources available, including websites, books, and financial podcasts and blogs.
Challenge yourself to learn one new aspect of personal finances each week.
No matter how much foundational knowledge you possess, learning more can give you the confidence you need to make money work for you.
KNOW WHERE THE IMPORTANT THINGS ARE
Another among the important money moves. If your partner takes care of finances, at least insist on finding out where all important stuff are kept, including:
-Previous year tax returns
-Important papers (like the lease agreement or mortgage)
-Gold and jewellery
Having easy access to financial papers can lower your stress levels when your partner is seriously ill or passes away.
If you’re single, providing easy access to essential documents can reduce the stress levels of your family when it’s time for them to take charge.
HAVE YOUR OWN MONEY
This is by far most important money move and non-negotiable.
There are a few things having money of your own can do for you:
– Makes you independent.
– Provides opportunity to work upon your financial skills.
– Lessens the need of credit card. When you have a small cash reserve put away, it’s unlikely that you’ll have to pull out a credit card for an emergency.
– Allow you to pursue your interests without any interference. Let’s say you collect tons of makeup but your partner thinks it’s ridiculous. Having a bit of your own money means each of you can pay for things the other finds silly without getting into an argument.
Few women than men consider themselves to be in “good” or “excellent” financial shape. Women are less likely to be investing and are more likely to have debt. And women are still being paid less than men overall. In this case, it is important to take matters in their own hands, make all important money moves in order to live comfortably.
Which of these money moves have you already made? Comment below