Well, not all women are confident enough that they can make wise financial decisions. In fact, a research conducted by Prudential Research study states that only two out of ten women are confident about their financial decisions. That is mainly because they have not set themselves to build a detailed financial plan for themselves.
Financial planning should be of utmost importance to women that will help you to achieve financial independence. There is nothing wrong if you want to buy the dress you saw on the window display of your favorite boutique, all you need is to learn how to manage your money accordingly.
In the long run, to live a successful and prosperous life your financial independence is what will help you attain a fulfilling life. Here are a few simple things you can put on your checklist to build a secure financial status.
Pen down your financial goals
Once you start earning and reach the right age, you start questioning your wants in life. Whether it is investing in your own business or settling down and possibly even settling down. So, it is not a surprise that all your wants come with a price tag; then you are required to save up money.
All these things involve spending a huge deal of money, penning down is one thing which you can do to create a concrete financial goal. Once you write down your goal, you can clearly start taking action towards your goal. Try writing your goals very specifically, because that way you will know what exactly you want.
Create a budget plan
It is one of the most boring things to do for sure, but you cannot disagree with how valuable it is to set a budget. As painful as the task is, it still needs to be done. If you are wondering why is it essential to make a budget plan? In simple words, you need to know where you are spending your money.
Budget plans allow you to see where your money goes, whether you are spending your money on things that you actually need or on items that are actually draining your finances dry. There is a guarantee that if you cross-check where you spend money, you can definitely come up with ways to save money by cutting down on your expenses.
There are unimportant things such as the subscribed magazine which you barely read or the excessive money you spend on junk food every evening. So, you can opt to cut down some of the extra expenses, make budget plans every time you receive their salary for the month.
Save Now, Spend Later
This is probably one of the oldest tricks in the book. Before you buy that adorable pair of heels on which you have your eyes set upon for weeks, finish the simple task of extracting some money from your paycheck and sending it to your savings account.
In fact, be firm with yourself, and disciplined enough that from the moment you receive your paycheck, ensure that you are prioritizing your savings. Learn to keep some money aside even if you’re cash-strapped. This is one of the tricks due to which you will be thankful in the future. Thus, get into the mindset of saving before spending rather than the other way around.
Financial analysts recommend saving at least 20 percent of your monthly salary. But as the saying goes “Learn to walk before you run”, but you can start lower and increase your savings as time goes by.
Minimize the unnecessary expenses
As you see there are too many things you must be spending money on which are absolutely unnecessary. Why pay for cable when you spend your time on YouTube most of the day? Or do you have a gym membership even if you barely go to the gym?
These are few unnecessary bills that you are paying on a monthly basis, there you see the chunk of money that is going to waste. Therefore minimize your expenses by getting rid of these monthly money drainers.
Think of investments
Few people are diehard fans of saving money and therefore they let their money sit inside their saving accounts. While it is always good to save money, investing is a much clever role to adapt. Storing money this way ignores one very important finance principle: inflation.
Inflation can lead to decreasing the purchasing value of your money, in case your bank’s interest rate is lower than the inflation rate. Which will result in the state of your money being worth far less than it is now in the future? That is the exact reason why you need to invest your money. Consider buying life insurance and investing in mutual funds and even the stock market.
By using this simple trick your financial status will be much secure for the future. You can always also opt for things like an extra job or investing in your passion to earn more money. There are many ways to save up money, just be dedicated, and patient enough now for a bright financial future.