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We have talked about toxic habits you should quit immediately to level up your life. In this post, we will discuss 11 habits of women who are never broke. You too can be one of these women.
#1: They set financial Goals:
Setting short term and long term financial goals is so important. Set a long term goal, break it down into smaller short terms goals that are easy to achieve in a given time frame.
And once you meet your goals, set new ones.
Setting goals is the most important thing to do when you are trying to make your finances work for you. Knowing how much you want to save and how much you should be spending becomes easy when you have your financial goals in place.
#2: They Save like a boss:
Saving is such an important habit that all women who are never broke have in common. They plan ahead and they save. They do not spend every dollar that they earn. Having a separate savings account does the trick.
I automate my savings and at the beginning of each month, a part of my income goes into the savings account automatically. If you do not know how much you should save, a general idea is to save about 1/3rd or 1/4th of your total income.
If you are living pay check to pay check, it is a great idea to take up a savings challenge and start small with your savings. Here are 15 things you can stop buying today that can save you thousands of dollars.
#3: They live below their means:
It goes with the above point. Living below your means is such a good habit to have. Living paycheque to paycheque causes un-necessary financial stress in life and learning to live below your means is therefore so important. It helps you avoid those high credit card debt payments.
I always tell people to not use credit cards at all, if you do not have your finances under control. It’s best to just use your debit card and spend the money that you already have, instead of accumulating credit card debt. That’s why it is so important to spend less than you earn.
Related: Money habits you need to adopt today
#4: They keep themselves financially educated:
Knowing what to do with your finances, how to make a budget, How to invest and where to invest is so important. And women who know how to handle their finances keep themselves educated on all these matters.
It is important that you educate yourself on how to make a budget for yourself. It is such a great skill to have and educating yourself from the right sources and people is again super important.
A few years back I had no idea about what investment options I have, and how much should I invest or save. And asking someone to help you with your finances is one thing, but getting that knowledge and being able to manage finances on your own is another. When I got educated about finances, I found myself making better financial decisions. And the same goes for you as well.
When you are educated about finances, you will be equipped to make better financial decisions on your own. This will help you take your finances in control.
#5: They know how to set a budget:
If you struggle with your finances and have no idea how to make a budget, I’ll let you in on a little secret. Budgeting doesn’t have to be overwhelming. You do not need 20 budget categories or a million envelopes to manage your finances.
All you need is a basic understanding of your expenses and your financial goals. Here are the 6 budget categories you need to make to manage your finances better. This super simple budgeting method allows you to make your budgeting easy and manageable.
#6: They invest:
I seriously can not stress this one enough. Investing your money and knowing where to invest is so important. Investing your money is such an important habit to have. Like I said before, investing about 1/3rd of your total income is a great idea.
Automating your investments does the trick for me, usually. Just like the savings, the investments are also automated at the beginning of the month.
It’s also always a great idea to diversify your investments. Whenever you are looking at investment options, it’s important to do your research well. It goes hand in hand with keeping yourself educated.
#7: They have an emergency fund:
Women who are never broke, have this habit in common. They have an emergency fund. Emergency fund is your rainy day fund and as the same suggests, it is to be used for emergencies only.
How much should you save though?
This is a very common question. And to make an emergency fund:
Add up all your expenses for the month. Write every single expense down and make a list. Add your living expenses like rent, electricity, water, any shopping that you do. I even write down very small expenses like coffee etc.
Now whatever that amount is, multiply this by 6 or 12 whatever you prefer. So that you have enough money in your emergency fund for 6 to 12 months, even if you are in between jobs.
#8: They know what they need VS want:
Knowing the difference between your wants and needs is such an important skill to learn.
Needs are something that are important for your survival. like you NEED food to eat, a ROOF over your head, CLOTHES on your body, the basics, you know. In today’s world, needs are also things that are important to keep our lives running smoothly. Like I NEED a laptop for my blogging business, I NEED a wifi connection and as such.
WANTS are however things that you DESIRE. Things that you do not need for your life to be running smoothly, but you want: The luxuries, if I may say so. This is the category where you designer handbags come in or things like a 55″inch High definition TV, or x-box comes in.
#9: They take Risks:
Now, Before you say that getting a hold of your finances and taking risks do not go together, let me explain. They take calculated risks. They aren’t afraid of trying something new.
And when they fail, they learn from their mistakes and try something different. In short, they keep trying new things to see what works and what doesn’t. They do not stick to doing one thing because what works today might not work tomorrow.
#10. They keep Track of their money:
This is something all rich people have in common as well. They are well aware of where their money is going. They keep a track of their expenditures and their cash flow.
If you often wonder at the month end where your money went. it is a great idea to start keeping a pocket notebook and write down all your expenditures for the day. Tracking down your spending will later on help you decide where you are wasting your money and how can you save more.
#11: They value relationships:
Rich people value relationships and they choose their relationships and friends wisely. It is said that you are a sum total of the 5 people you spend your most time with. So it becomes especially important that you choose your friends and people you spend time with wisely.
All rich people understand the importance of being and having mentors. attracting people who have a strong money mindset and spending time with such people is therefore crucial.
Rich women spend time with other rich women who inspire them. So spend more time with people who lift you up, who inspire you to do better and not dampen your spirits.
These are all the money habits that rich women have in common. If you want to be able to manage your money better and want to develop a strong money mindset, you need to start with simple habits that will take you a long way.
None of this is possible overnight. Change takes time. And developing good productive habits take time.
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