7 Simple Money Rules All Women Need to Improve Their Finances
A woman who understands her money is an empowered woman
In my recent blog post, I talk about the 3 areas women need to focus on to ensure and maintain their empowerment:
- Financial Literacy
- Career Management
- Health and Wellness
I wanted to do a Financial Literacy double-click (corporate world-speak for going a little deeper into a subject) for the woman who, like me, may have a negative mindset around the topic of money they need to work through. She may also need a little more education.
I cannot stress it enough:
Financial literacy for women is imperative in this period we’re living in. Ensuring your economic viability now and for your future is your responsibility.
Therefore, I created these
7 Simple Rules for Money Management -
a guide for women who don’t particularly enjoy money or math.
Please note: I am not a Certified Financial Planner and provide suggestions based on my personal experience and observations. Find a certified professional and additional resources at: CFP Board | Certified Financial Planner Board of Standards, Inc. before making any major financial decisions.
RULE 1. Confronting the Money Mindset
Understand and work through any negative feelings about money. It’s a hot topic. There’s baggage labeled “MONEY” on it from our childhood. Whatever messages we receive early on about money impact how we deal with it today.
Resolve the conflict you have with money by first understanding the nature of your relationship with it. Journal on these prompts:
- Reflect on Childhood Memories:
- Prompt: "Think back to your earliest memories involving money. What were some of the key experiences or messages you received about money from your family? How did these experiences make you feel, and what lessons did you internalize from them?"
- Family Attitudes and Behaviors:
- Prompt: "Consider the attitudes and behaviors of your parents or caregivers towards money. Were they frugal, generous, anxious, or indifferent? How did these attitudes influence your own views and habits related to money?"
- Money and Emotions:
- Prompt: Write about a specific incident where money was a central topic and explore how that experience has shaped your current emotional response to money matters. How did discussions about money make you feel as a child? Did you feel secure, anxious, empowered, or confused?
“Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like."
RULE 2. Taking Control of Your Income
Don’t let anyone else control your income and do not give complete access to your money to someone else. This one takes working through your mindset around money because it requires you to be an active participant in managing your finances. You should always maintain full access to how you earn money and how you spend it.
RULE 3. Pursuing Income Growth
Always look for ways to increase your income.
- Do you want to start a side hustle?
- Do you want to create mailbox money?
- Do you want to advance in your current career or organization?
If the way you increase your income aligns with your authentic nature, your passions, and/or your values, actively pursue how to increase your income.
Make decisions that keep your options open and income increasing. Conduct research and develop new skills or enhance your existing skills to prepare you for that next opportunity.
RULE 4. Know Your Numbers
What money do you bring home? What are you spending? What are you saving? What’s your credit score?
Create routines for paying your bills that allow you to spend quality time managing your finances.
Gather all the data for the month. Begin to enjoy spending time with your money for a few hours, perhaps on a weekend morning, at least once a month. Practice gratitude for what you have.
As you’re paying out money, say the mantra,
“There’s more where that came from."
Give your money the love, time, and attention it deserves in a non-stressful or agitated way.
"Do not save what is left after spending but spend what is left after saving." – Warren Buffett
RULE 5. Planning for the Financial Future
When making financial decisions always think about the time when you make the switch from earning money from your employment to when your income is derived from savings or other sources other than a job.
This includes saving for
retirement
and your future care, or preparing in the case of job loss, or losing access to your spouse’s income. Plan for the day when your financial situation changes (psst - it WILL change, eventually).
RULE 6. Seeking Financial Guidance
If you can, get a paid, reputable
financial advisor. Choose someone independent of family and friends. You can always seek free guidance. Many advisors will offer a free consultation. Even if you’re not ready to hire someone, you can get some helpful information to prepare you for the time when you are able to.
"An investment in knowledge pays the
best interest." –
Benjamin Franklin
RULE 7. Educating Yourself
Listen to
podcasts,
read books, and information on
money management. Here are a couple of my favorites:
- Danette Lowe's Podcast: Ready to Retire! Here she provides practical and useful information to ensure you’re planning for retirement effectively
- Danette Lowe's Book: Thriving in the fast lane. 90 days to set, plan and achieve your goals. You can get your own copy by clicking the link.
- Sign up for Danette’s email list to receive valuable information straight to your email box: Sign Up for Expert Wealth Management Tips!
- Find a Certified Financial Planner in your area: CFP Board | Certified Financial Planner Board of Standards, Inc.
Empowering Women Through Financial Literacy
There are a lot of issues being pushed in the political arena in which the result is women losing economic options and financial viability.
My passion is to empower women in every aspect of their lives.
Join the Movement!
EMPOWER WOMEN. TRANSFORM LIVES.
Schedule time with me today to discuss how you can be part of this empowering movement.
Click here to book an appointment.
