Characteristics of a financially stable woman
Have you ever wondered what it takes to achieve financial freedom? Trust me, it is not about how much you earn but how good you manage the little you get. But worry not, for today we shall discuss how to become a financially stable woman.
You can thank me later!
- Save! Save! Save!
Experts suggest that you settle on a specific and reasonable fraction of your earnings that you would like to save, I would recommend a third or a quarter. Put it aside and budget with the rest for expenses and investments.
- Set and respect your financial goals.
It is hard to achieve what you can’t dream. Observe your financial discipline setting goals that you intend to accomplish in the near future and in the long-run. It is even better that you decide on an action plan and aim for it. It helps to maintain your focus.
- Prepare a preference list
Putting it down on paper ensures that you allocate adequate time to things that matter most and that you do not forget any important event and spend more time on insignificant activities. Prepare the list just before you go to bed and recheck it the next day before sleeping. You can award yourself some marks depending on how satisfied you are with how you spent the day.
- Maintain positivity
The world is full of negativity, and you have to ensure that it does not drug you with it. Focus on the little things that cheer you up and give you the extra push. Success requires happy thoughts, inspirations, and keeping the company of people who are optimists.
- Learn and Understand your finances
Financial ignorance is next to poverty. Get trained on methods of avoiding debts, investing, planning your finances, and how to maintain financial discipline. Financial education serves as an eye-opener to opportunities that you never knew existed. Who said you couldn’t learn about managing your money?
- Keep records
Maintaining a ledger book is key to understanding where you spend more and also determine which parts deserve more allocation. Be an institution of your own complete with balance sheets trial balances to understand your financial position and identify areas that need improvement.
- Budget
Budgeting helps you to spend your income on necessities only and avoid spending on things that you do not need. Besides, budgeting ensures that you buy the right quantities and eliminates waste. Budgets can be done daily, weekly, monthly, or annually.
- Create an emergency pot
The world is full of uncertainties. Sometimes you come across finances that are not part of your regular income. Similarly, we encounter urgent issues that we didn’t budget for and which needs our immediate attention. It would be best if you had a side kitty where you hold those finances that arise from nowhere to meet the expenses that arise from nowhere. You can also make the kitty part of your expenses and allocate it a part of the money you retain for expenses.
- Invest! Invest! Invest!
The secret to success is saving and investing. There is no better feeling than knowing that someone has got your back. Besides your regular income, investments can create another regular source, however small it may be contributing.
Investors are some of the most financially stable individuals on the planet because they let money do the work. Besides, one you will retire, but your expenses are going nowhere as long as you are still breathing.
- Learn how to determine your necessities ad opportunity costs
The line between a need and a want is very thin and requires a financial discipline of the highest order to remain on the positive side. Please make it a habit only to buy what you need at a particular time and forego what you want until it matures into a need.
- Devise methods of cutting down expenses
The path to financial freedom is a jealous one. It likes injections and hates withdrawals. Find ways of making more income and reduce as much as possible any activities that take money away from the system. Yes, I said system. That is what you become, completely armed with plans and records.