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As times change, so should our mindsets towards finances as women. More and more women are becoming the money makers in their communities. We see women starting businesses, closing big deals, becoming majority stakeholders, and creating financially sustainable lifestyles. Many thought women would not be able to do these things 100 years back. But why are some women still struggling with managing their finances while they do so well in their careers?
Underwhelming take-home pay
In some professions, women are still underpaid compared with men in their fields. This may lead to women having less money to fulfil their needs. But there are ways in which they can make more income on top of their salary if negotiating for a pay raise with the financial manager at work does not work out.
You can start a side hustle. There are so many side hustle options to choose from. You can create a podcast, open a catering business, offer consultation services, be a make-up artist, or proofread articles and books. You can even tutor online after hours. Making extra money outside of work requires dedication, but it is worth it once you get into the rhythm of things.
You can start relooking your spending habits and living on a budget. Creating a budget is simply comparing your income to expenses and ensuring you can save enough for your goals and get through the month. This also allows you to track your spending. Remember the adage “where you spend is where you invest”. Be intentional about how every rand is spent.
Start fostering a culture of saving for the future and emergencies and investing so that your money works for you and secures your financial future. A quick start is opening an emergency savings account. You can choose an interest-bearing account to grow your money with compound interest. In this way, your money increases without you breaking a sweat.
Lack of financial literacy
Many households did not have the big money talk with their daughters like they did with their sons. They raised girls to care more about the home than financial affairs. Aren't you glad that is over? However we still have many women who lack the basic financial knowledge and skills they could have learned from a young age. But it is never too late to learn something new.
- You can start watching financial news on television or YouTube. Financial blogs, podcasts, books, and newsletters give valuable information on financial management.
- Books, books, books. The likes of
- You can start a free money management course. There are plenty online and they usually take a couple of days to complete.
- You can discuss more money management, debt management, budgeting, saving and investing with friends, your partner, family and colleagues.
- The best way to learn is through practice. Start working through your money and speak to a financial advisor on how you can improve.
Not investing enough
Women tend to outlive men, so it makes sense that they should invest more. Investing requires you to put money aside and allow it to grow. As nurturers who think about others, the idea of putting money aside that you will not touch for the next 20 years seems unreasonable. But there are lots of practical reason for investing.
- You are multiplying your money. So, when your children are ready to go to university in 10 years, you can take care of their fees.
- You can save enough to live off for retirement if you start young. The younger you start, the more time your money has to grow.
- You have emergency money for those rainy days. Some investment assets allow you to make frequent withdrawals; however, be aware of the penalties you may incur. Speak to your bank or broker about the conditions of withdrawing your investments.
Women can become the best money managers; we are predisposed to be great wealth builders. A basic understanding of credit facilities and debt can take you a long way. How you manage your finances does not just impact your life but also the lives of your dependents. This Women's Month is an excellent time for women to spend each day exploring a new financial concept and spending 15 minutes educating themselves on it.
PERSONAL FINANCE