How to Create a Stable Financial Future as a Woman
This month is International Women’s Month, and as we discuss gender equality, we should also discuss a woman’s financial stability.
Since the beginning of time, women have been told they are bad with money. In that case, topics like financial stability for women are mostly overlooked. As a woman who is on the road to financial stability, the only thing that should matter is how much you have and how you can use what you have to reach your goals.
So, how can you be financially stable?
- Live Within your Means
Maintain a quality of life that is lower than what your income will allow. Even if your income rises as you develop in your job and gain more expertise, the wisest course of action is to use this extra money to clear your debt or increase savings rather than spend it on new items and live a more opulent lifestyle. You will always have extra cash flow if the cost of your lifestyle grows more slowly than your income, which you may use for financial objectives or an unforeseen emergency.
- Set Realistic Financial Goals
Being financially stable all boils down to developing strategies for how you spend, save, and invest your money. So first, take some time to think about your general financial situation and establish your financial goals before you establish particular routines.
How’s your current financial situation? What do you want it to look like in a week, a month, or five years? Note your current situation and the direction you want your money to go in.
Next, be specific about your financial goals. For example, “I should buy a house one day” becomes “I’ll set a dollar goal for a mortgage payment and reach it in five years by cutting down discretionary spending.” The fundamental steps to ensuring financial security include saving for the future, setting goals, building credit, minimizing high-interest debt, and forming a bond with their preferred bank.
- Investment in Yourself.
You should look to invest in yourself before ever considering making a financial commitment to the stock market. Spend the money, time, and effort necessary to acquire the necessary skills by teaching yourself. Degrees from colleges are included. Added to it are other skills and expertise. You may occasionally benefit just as much from learning things unrelated to your career as from learning things that are. Employers seek out individuals who can provide a variety of contributions to their businesses. Did your interviewing abilities prevent you from landing your ideal job? You may use courses, books, and internet tools to do better the next time. It’s always wise to invest in your professional development. It boosts your professional earning potential and gives you access to new options.
Also, your success depends on your ability to maintain good health. Medical expenses are one factor that quickly depletes resources. Even though you can’t stop all diseases from occurring, a balanced diet, regular sleep patterns, and exercise can help a lot. It entails keeping your stress levels down. Discover ways to unwind and relax.
- Save for your Retirement.
It’s difficult to consider retiring while you’re young. Why put money down for something that won’t happen for decades? Regrettably, this way of thinking contributes to the lack of retirement savings among most women. You must prepare for the times when you won’t receive a paycheck if you want to achieve financial security. This is particularly valid if you have any retirement plans. When you retire, do you want to travel? Would you want to volunteer or attend a local course? Do you want to spend more time taking care of your children? All of those things are wonderful, but you can’t accomplish them without money.
Put retirement first now, and you’ll be glad you did afterward. Begin your retirement savings immediately, even if you don’t have much to put away. Long-term earnings are increased by starting early due to the wonders of compound interest. You can start with an individual savings account (ISA) if your company doesn’t provide a retirement plan.
You do not need to do it all at once. Prioritize your actions according to how they apply to you after doing a comprehensive evaluation of your current financial situation (including how much money you have in each account). Perhaps you already have an emergency fund, but you still have a high-interest credit card balance that needs to be paid off.
If you find this blog helpful, give it a clap and a comment.
Follow me on:
- Email: seunfunmiokunowo@gmail.com
- LinkedIn: @Oluwaseunfunmi Okunowo
- Twitter: @workspacebestie
- Instagram: @workspacebestie
