Financial Planning for Women

Personal finance tips that every woman needs to know

This is about financial planning for women and contains personal finance tips that every woman needs to know.

In a 2019 CBN report, it was disclosed that ‘levels of income, education, and trust in financial services are some of the factors limiting women’s access to finance and keeping them financially excluded.’

In the areas of financial literacy and personal finance, women seem to be consistently behind men. And this in turn has a negative impact on their ability to accumulate wealth, properly plan for retirement and make steady investments.

As more women are being empowered through education and increased employment opportunities, many are highly motivated to work even harder in order to ease their financial burden; especially in countries with poor economies.

Regardless of one’s position in life, it is important for women to learn to save, invest and spend less in order to avoid financial distress, grow wealth and attain financial freedom.

Read: Saving and investing for beginners

Financial Tips for Women

1. Cut down on expenses

This will help in gaining clarity and putting your finances in better shape. Know your regular and essential expenses, track them by looking at your bank statement periodically and understand your spending pattern(s). A good way to get started is to go on a money diet.

2. Have a plan and monthly budget

What are the things you want to achieve, how much do they cost and how long will they take to actualise? Identify your short, medium and long term goals in various aspects of your life like savings, investments, housing, insurance, education etc. and create a strategy to reach them.

Also, draw up a plan to pay bills, settle day to day needs and some flex money. Never forget to break the budget into needs, wants, savings/investments and an emergency fund if you haven’t already built one. Lastly, avoid overshooting your budget.

3. Save and invest wisely

No matter what you earn, always make it a habit to save and invest some of your income every month. For women who want to gain financial independence, it is wise to always put something aside for the future by saving and investing. Save and invest first, then spend later so you can fulfil your money goals and earn returns.

Basically, you need to make your money work for you by determining why you’re investing, how much you will need to invest, the investment type and how long it’ll take to mature. To do this, you need some level of financial discipline and Pettysave is a good place to start.

4. Have more than one stream of income

Whether you have a job or not, starting a side hustle or multiple side hustles is something that every woman should consider in this day and age. This will help you diversify your revenue source so you do not put all your eggs in one basket.

If you ever lose your day job, you will still have a fall back. And a side hustle gives you peace of mind because if your expenses are putting a strain on your current income, now you’ll have some extra to work with.

5. Assets over liabilities

Instead of spending your funds on looking expensive or purchasing extravagancies, invest funds in things that help you earn more money. For instance, instead of buying a Birkin bag to add to your collection of bags, buy land to build something or let it appreciate and sell it off at a higher price later. This will help you in growing your net worth.

6. Network

Spend time with people who understand good finance management and are successfully applying it in their lives. You can learn a lot from associating with and observing them.

7. Invest in insurance

Buy insurance premiums for your valuable assets like a car, business equipment, buildings, prized jewellery or even your life and healthcare. This gives you a backup plan and keeps you relatively covered in case of unforeseen occurrences.

After working so hard for your money, you really don’t want an unexpected situation to run you dry. So having a good insurance plan can turn a major disaster into a basic inconvenience.

8. Set up an emergency fund

An emergency or ‘rainy day’ fund is money put aside in case any unexpected and/or unpleasant situation comes up to put a strain on one’s finances. An emergency fund gives peace of mind. It should be built consistently over time and only tapped into in cases that can actually be termed ‘emergencies’ such as accidents, robbery, job loss, natural disasters, pandemics or other health issues.

For example:

If you save 1000 everyday, you will have saved N365,000 by year end. The more you have in your emergency fund, the more prepared you will be for unexpected costs.

Here are some tips on how to start building an emergency fund.

All in all, have an open mind and a positive mindset. Start small and grow, don’t wait until later.

About Pettysave

Pettysave enables you to attain true financial freedom through savings and investments which can be scheduled conveniently. The app helps you to plan your finances, save towards life goals and invest in minimal risk investment options.

Get started on Pettysave and start earning interest on your savings and returns on your investments today!

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