Everywhere in the world, ambitious and successful women share quite a few traits, especially when it comes to how they handle their money. It’s all about learning the art of when to spend, when to save, and how to invest. But is it that simple?
Well, the truth is that there’s no one-size-fits-all strategy for managing your finances. Different women have different sorts of relationships with money. But the key lies in understanding what that relationship is. And just like any other relationship in your life, you’ve got to figure out how to nurture it properly in order to get the best out of it. Here are some pro tips from the boss ladies themselves:
1. Be Aware of All Your Expenses
A successful woman knows where her money comes from, but more importantly, where it goes! She knows when her bills are due, how much her groceries and other essentials cost, how much she can afford to spend on her
When you are aware of your expenses, automatically you become more organized. There are no last-minute, unpleasant surprises. In fact, just to be safe, you can even assign a small amount of your budget towards such adversities. You can also automate some of your bills to make things super simple. Or you can experiment with automating your savings and see how that works for you.
2. Never Spend More Than What You Can Afford
Trying to drive an Aston Martin when you can barely afford a Chevrolet Spark is always a bad idea! The problem is that so many women equate wealth with fulfillment. That’s not how it works! And being desperate about it or spending more than what you can actually afford in order to maintain a social image of some kind is a disastrous idea.
If you keep doing this, you are not giving yourself an honest chance to evolve as a person. Instead, save some money, invest in yourself, learn new skills, and then use these new talents to create more financial independence. Simple!
3. Stick to the Plan
Carefully plan a budget and then stick to it. A lot of women forget the ‘stick to it’ part while they are out on a shopping spree. However, successful women do not fall into this trap that easily. They know what their plan is and they have the necessary discipline to avoid any distractions.
There are a number of tricks you can employ for this purpose. For example – setting up a separate spending account, using envelopes for different expenses, or using a money managing app on your phone to organize all your finances. Or you can use the mantra – “Just because I can afford it, it doesn’t mean I need it”. The point is to somehow make it a priority.
4. Know the Importance of Investing Right
Most women just assume that they’d be bad at investing when the fact is quite the opposite. Yes, women are better investors than men! Women are naturally gifted risk-analyzers and they have an innate talent for effortlessly perceiving the bigger picture instead of just being focussed on short-term goals and returns.
Successful women learn about investing right and they make it a point to invest in themselves as well. Actually, that’s what makes all the difference. Don’t just invest in bonds, market funds, and real estate. Invest in your personal growth, health, mental balance, and peace of mind. What’s the point of all the money if you are not in the right frame of mind to enjoy it?
5. Understand the Concept of ‘Money Can’t Buy You Happiness’
You need to understand that money on its own doesn’t translate to happiness or satisfaction of any kind. In fact, history tells you that people become more and more miserable as they become more and more wealthy.
So, you need to ask yourself: What does money represent in your life? Is it freedom, independence, a sense of security, or something else? Whatever that is, it should be your focus instead of just planning to acquire more and more wealth somehow.
Also, as an
Now, this may sound a little too ‘preachy’ but even science agrees that investing in such prospects brings the ultimate satisfaction, unlike any other endeavor. So, next time you sit down to plan your finances, assign a little budget towards ‘giving back’ as well and see if it makes any difference in your life.
