Growing up, most of us have missed out on a core life learning skill: financial literacy. When it came to money management, the sources of knowledge were either life experiences or advice from parents or siblings.
Financial advice is always invaluable. In this day and age, it’s important to have an understanding of financial management. For example, knowing to secure the best loans at competitive interest rates or how to make the right investment opportunities and make idle money grow can help you grow your wealth.
With women playing an increasingly important role in the workforce and the entrepreneurial space, it becomes even more important for them to learn better ways to manage money. Whether they are investing in bonds or purchasing a home, they must be in charge of all their financial decisions. And to achieve this, women need solid financial advice and guidance.
Here are 5 powerful and valuable pieces of financial advice, from women to women.
1) Write Down Your Financial Goals
It’s easy to say, “I want to be debt-free” or “I want to buy a house”. Even if you have the right intention and motivation, these goals can be ambiguous when you only think but dont act.
Make every financial goal a SMART (specific, measurable, achievable, relevant and time-bound) goal. By writing down exactly what you want to achieve, when you want to achieve it, and what steps you plan to take, you are able to give your goals a more tangible intent.
If your goal is to own a home, determine where you want it, when you want it (for example, within five years), and how much money you will need to get there. If your goal is to be free from debt, set an end date and how you plan to save per month to pay the debt off.
2) Brush Off Bad Debt Quickly
If you’ve accumulated any bad debts, paying them off as quickly as possible will do you good. This is perhaps the most important piece of advice for all women, no matter what age they are. Whether it’s student loans or credit card debts, sky-high interest rates can quickly accumulate over time and add to your debt burden.
Unpaid bad debt impacts your credit score and also your future creditworthiness. Lenders look at your credit and payment history to determine whether or not to accept your next loan application.
Not paying off your debts is equal to giving away your hard-earned money to something that won’t add to your goals for the future. Start by listing all your debts and start paying off your small debts first to move on to the bigger debts.
3) Increase Your Income
If you’re struggling to make ends meet, look for ways to earn some extra quid. A few things you can do to make extra cash:
- Ask for a pay rise
- Invest
- Look for a part-time job
- Start a side gig
If you’ve been employed for a while and progressing well at work, don’t hold back and ask for a pay raise. Traditionally, it’s observed that women tend to hold back from asking for pay raises or promotions as compared to their male counterparts.
However, even a modest increase in your pay can provide the much-needed income boost you need to increase your emergency savings, invest in an asset, or pay off a small debt. Remember: no ask, no get!
Furthermore, it is easier to find and establish additional income streams when you are younger and have fewer responsibilities. Make the most of the time and energy you have to start a side business or work part-time on the weekends. Besides, the added income also gets you additional work experience.
4) Shop Smart
Be more smart and savvy with your shopping to save up. If you’re a frequent online shopper, install digital tools and browser extensions that watch price trends and create alerts when the items are discounted or at the lowest prices. When you know what you want, tracking prices closely can save you loads of money from a sale by buying the product before anyone else.
If you tend to have the same meals on most weeks, create a master shopping list where you list out all the items you need for the month. This tip will make you stick to the list on shopping trips, keep your food stocked up, and prevent you from going all out on an impulse buying spree.
Add a ‘layer’ to your online shopping spending. Turn off the one-click purchase option and never pre-save your credit card details to your online shopping accounts. This works like a gatekeeper and adds to the inconvenience of finding your card for an impulse purchase when you’re comfortably lounging on the sofa.
5) Continue Learning About Finances
Personal finance, like any other thriving field, evolves over time. If you want to improve your financial skills, you must constantly update your knowledge.
Turn to books written by finance experts and by those who turned their lives around by changing their money mindset. Podcasts are a great way to catch up on the latest and relevant trends to tune into on your commute. You can also read financial blogs for advice and tips that focus on women and their financial struggles.
Living in the digital age has its benefits, where the internet is a goldmine of information on financial advice and tricks if only you know where to look. Look for people with subject matter expertise, try the suggestions and make changes to your lifestyle if they resonate with you. You never know what piece of financial advice or trick may turn your life around!
To Sum Up
Even if you haven’t learnt about financial literacy in school or college, don’t let that prevent you from achieving your financial goals. With our advice and tips, you can add to your monthly savings, learn ways to shop smart, get rid of debt, and become better at managing money.
These suggestions are certainly valuable, but only scratch the surface. You’ll need to dig a little deeper and work out your finances according to your lifestyle and goals.
Power through your financial journey by taking the right step in the right direction and watch how it changes your life.
