Do you ever wonder why some women always seem to have their finances in control? And what does it take to be more financially stable? In this post we are talking about 17 habits that women who are financially savvy have in common. These habits will help you develop a better money mindset and get your personal finances in control.
And to do this you need to know the basics of financial management and adopt good money habits. And while this is something that should be taught in high school, it unfortunately is not. But the good thing is that you can always learn. And while things like budgeting and learning about your investment options take more time, you can always start with the right money habits.
17 Money habits of financially savvy women:
#1: She takes full responsibility:
A financially savvy woman takes full responsibility of her finances. She knows she is in charge and that she is in control. She doesn’t make any hasty decisions with money and she doesn’t keep complaining about the lack of money. She takes the responsibility and knows that she is a strong independent woman who is capable of making money.
#2:She sets Financial Goals:
She sets financial goals for herself and knows the importance of setting financial goals. And then she makes a plan to achieve them. But she knows how she needs to set the right short term and long term financial goals. She knows the power of setting SMART goals and has a financial plan to achieve those goals.
#3: She Works hard:
She knows that she needs to work hard towards her goals and to be more financially stable. She knows how much money she needs to make in order to achieve her goals and is not afraid of the hard work that comes with it. She works hard towards her goals and takes up extra shifts whenever she can. She is also willing to try a side hustle to make more money on the side that will help her achieve her financial goals.
#4:She sets a budget and sticks to it:
A financially savvy woman knows the importance of setting a budget and sticking to it. She knows how important budgeting your money is and she likes to be in control of her finances. She likes knowing exactly how much she makes and what her expenses look like. She knows how much money she should be spending in a month or a week and never goes above that budget.
#5: She Lives below her means:
She knows the importance of living below her means and is not afraid of living frugally and cutting expenses whenever she can. She does not live pay check to pay check and she does not spend every single penny she makes. She knows that she needs to live below her means in order to achieve her goals and achieve financial freedom.
#6:She saves before she spends:
A financially savvy woman knows to save before she spends. She pays herself first and uses that money for savings and investments and then spends from the money that’s left. You will never see her spending her entire pay check and then not having any money left to save. And that’s because she understands the power of saving money.
#7: She never buys what she can’t afford:
A financially savvy woman knows to not buy things she can’t afford. And she knows exactly what she can afford. She knows better than buying a luxury bag when she really can’t afford it. And she knows how to prioritise her spending on things that actually matter rather than spending all her money on a bag or shoes.
#8:She pays off debt:
She knows how important it is to pay off her debts. And she will never buy anything that puts her in more debt. She always pays more than the minimum on her credit card bills. She knows that the debts are keeping her from being more financially stable and she makes a proper plan to pay off her debts as quickly as possible.
#9: Invest for future:
She knows that she needs to invest for the future too and that she shouldn’t be spending every single penny she makes. She knows about her investment options because she chooses to keep her up to date with the various investment options. And she also knows that she needs to start planning and saving for retirement as early as possible.
#10: She has an emergency fund:
A financially independent and financially stable woman has an emergency fund. She knows the importance of setting aside funds for unprecedented expenses and she knows how using her credit cards in those times of emergency will put her in even more debt. So instead of having to use credit cards and then paying huge sums on interest on them later on, she saves money for an emergency fund that she can use when need be.
#11: she knows her worth:
A financially strong women knows her worth and she is not afraid to ask for it. She never undermines the work she puts in and is not afraid to ask to be compensated for the work she is putting in. She knows how to negotiate her salary with her employer and is not afraid to ask for a raise of she feels like her work is undervalued.
#12: She knows to not copy anyone else’s lifestyle:
She knows not to compare her life to someone else’s life. And she knows that looking rich and having a lavish lifestyle is different that being wealthy. She understands the importance of money and knows that she doesn’t need to spend all her money on a luxury bag or a dress because everyone has one. She knows better than to compare her life to other’s on social media. She knows her priorities and does not spend money just to portray an image or to match to someone else’s standards.
#13: she focuses on increasing her net worth:
She knows that increasing her net worth is the key to living a more financially free life. And while the first step is saving money, the next is investing. And she knows that she needs to invest in building assets that increase in their value over time. And she knows that increasing her net worth is the way to financial freedom. She understands that the money she spends on clothes, shoes pr bags is not doing her any good. And she invests in real estate and mutual funds, because she knows they will help her increase her net worth.
#14: She is Always learning:
She has no problem in accepting that she doesn’t know everything about money, but she never stops learning. She is not afraid to ask for help and seek mentors who teach her to have a right money mindset. And she also knows the importance of keeping herself updated of what’s going on with the world economy and what are her best investment options.
#15:She is Not ashamed to talk about money:
She respects money and knows that money is super important to live the kind of life you want.And thus, she doesn’t treat money as a taboo subject. Instead, she talks about it openly. She surrounds herself with people who are not shy in talking about money and she discusses money openly. She knows that she needs more money minded people around her and seeks them out actively.
#16: She has a Balanced approach to money management:
She has a balanced approach to money management. Even if she is living below her means and living frugally, you will never feel like she is stressed about money. And she knows when to spend her money and on what things. It’s not like she stops living her life and enjoying small things in order to save money. She has a very balanced approach to money management. She knows she is making the money to live a comfortable life that’s fulfilling and also to save for retirement. So she does both.
#17: She Does not impulse buy:
A financially savvy woman never impulse buys anything. She sees things for the true value they hold for her and not for the price they are listed at. So you will never see her buying things on an impulse just because something looks super cute or because it is on sale. She will always take her time to assess its true value for her and then make a decision whether to spend the money or not.
What are the key takeaways?
- Your financial habits are super important for you to have financial freedom. And it’s important to understand what habits are helping you and what habits are keeping you poor.
- It is important to set a budget and stick to it no matter what. Do not spend the money you don’t have and think about savings and investments before you spend your entire pay check.
- You should know your worth and should not be afraid to ask for a raise. You also need to work hard towards money and to consider a side hustle to make more money.
- Living frugally and below your means is nothing to be ashamed of. in fact you should take pride in taking control of your finances and not spending the money you don’t have.
And don’t worry if you have no clear idea about budgeting and finances. There are so many resources out there that will teach you things you need to know and so many ideas to cut your expenses and live frugally to be able to save more and achieve your financial goals quickly.