Financial Planning for Women
At the very least, every woman needs to know the basics of personal finance.
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. However, a number of female personal finance experts & female-centered associations like Arese Ugwu with her Smart Money Woman series, Tosin Olaseinde of Money Africa and WIMBIZ, help in promoting financial literacy among women and this has inspired many women to start managing their finances better.
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.
Financial Tips for Women
1. Cut down on expenses
This will help in gaining clarity and putting your finances in better shape. A good way to get started is to go on a money diet.
2. Have a plan and monthly budget
Create 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.
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. Basically, you need to make your money work for you in order to become more financially independent. 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 improve your financial independence, especially if your expenses are putting a strain on your current income.
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.
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 jewelry or even your life and healthcare. This will keep you relatively covered in case of unforeseen occurrences.
8. Set up an emergency fund
An emergency fund is money put aside in case any unexpected and/or unpleasant situation comes up to put a strain on one’s finances. 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. 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.
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. Start earning passive income and growing your net worth with Pettysave.
Get started on Pettysave and start earning interest on your savings and returns on your investments today!
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