15 Money Habits for Financially Savvy Women

Our society has a long way to go toward financial equality. According to The Money Charity, women make 17.4% less than males. Unfortunately, there is a significant gender disparity in financial understanding.

For example, a 2017 survey by the Fawcett Society found that women are less likely than men to understand essential financial concepts. Only 40% of women have strong financial literacy, compared to 67% of males.

If you are a woman, it is critical to make the most of your finances. To accomplish this, you must first grasp the fundamentals of financial management and begin developing long-term financial habits.

Most people still consider finance to be a male-dominated field. Many people believe that they are neither intelligent or capable of managing their own finances.

Unfortunately, most of us did not grow up with financially responsible female role models. We frequently have to learn things the hard way. In my situation, it wasn’t until I found myself deeply in debt that I began to take my money seriously.

That is the bad news.

The good news is that you can take control of your finances by adopting new money management strategies and building excellent financial habits.

The saying goes, “Humans are creatures of habit.” Habits may make or break you. In other words, ‘we first make our habits, then our habits make us.’

In other words, your financial decisions can make or destroy you. It’s time to learn the financial habits of financially wise women and begin building your wealth!

Key Takeaways

• Your financial decisions can make or destroy you. One of the most significant distinctions between financially smart women and others is their good financial practices. However, the good news is that anyone can learn these financial habits.
• We need to confront our financial situation. We must take responsibility for increasing our own riches.
• We need to understand our worth and ask for what we deserve.
• If we want to accumulate wealth and make sound financial judgments, we must first acquire healthy financial habits.
• We need to understand about money and get comfortable discussing it. Our goal is to maximize our money by learning how to save and invest.
• We must take a serious look at the unique hurdles that women confront, set short- and long-term financial goals, and devise a strategy to overcome these obstacles and achieve our objectives.

15 Money Habits for Financially Savvy Women

1. They Know Their Worth and Ask For It

Financially savvy women do not belittle their accomplishments. They understand that if you’re doing an excellent job, your salary should reflect that. Do not allow somebody to take advantage of you simply because you are a woman. When purchasing goods or services, ensure that you receive a fair price. If you believe a quote is too high, speak out and negotiate.

I understand how difficult it may be to talk money. Most women do not naturally exhibit assertive behavior. We are taught from a young age that asking for a wage rise, bargaining for a better price, or requesting a better benefits package is unfeminine, unladylike, or just unacceptable. But if you want to become affluent, you must begin negotiating.

If you are seeking a raise at work, conduct some research before presenting your case.

• What do you contribute to the company?
• What is the going rate for jobs in your field?
• Is it the time to ask for a raise? (For example, if your manager is in the midst of a budgeting problem, they are less likely to answer “Yes”).

If your firm is unable to boost your income, you may be able to bargain for other advantages such as training opportunities, flexible working hours, and greater vacation time.

2. They Understand Their Finances and Devise A Strategy to Manage Them

Financially savvy women make a budget and stick to it.

• How much money is in your current account?
• How much do you save and invest?
• How much money do you earn and save each month?

You can’t manage or plan your finances unless you know how much you have. Knowledge is powerful!

A spending plan can assist you in seeing where your money is going, how much money you have coming in each month, where you can cut back on your spending, and how much you can save each month.

3. They Prioritize Saving Over Spending And Automate Their Savings

Financially aware women do not save after they have paid their expenditures; instead, they save or pay themselves first.

Do you pay yourself first, or do you spend money first and then put the remainder in a savings account? If it’s the latter, it’s time to attempt a different approach.

Create a realistic budget or spending plan for your money, calculate how much you can afford to save each month, and save it as soon as you get paid. Create an automatic transfer from your current account to your savings account so you don’t have to think about it.

Automatic transfers are one of the simplest ways to save money and grow wealth quickly.  Start small; the most essential thing is to get started; once you start saving and generating momentum, it will get easier. I literally started saving with £5 and steadily increased the amount over time.

4. They Don’t Try to Keep Up With The Joneses

Financially smart women understand that looking and behaving rich do not equate to being wealthy. Trying to keep up with someone else’s lifestyle can only land you in financial difficulties and destroy your capacity to accumulate riches.

Instead, live within your means and prioritize your own goals. Comparing yourself to others, particularly those with larger wallets, can only make you feel insecure and trap you in a cycle of overspending and debt.

5. They Prepare For Emergencies And Save For Large Expenditures

We can’t predict the future, but it’s safe to assume that you’ll have to deal with emergencies from time to time. Building a contingency fund might help you avoid stress and debt. Ideally, this should be equivalent to at least three months’ wages.

Related:

• How to Build an Emergency Fund Quickly

6. They Set SMART Financial Goals

Financially smart women develop goals that are explicit, quantifiable, executable, realistic, and time-bound. And they devise an action plan to achieve their objectives. Do you have financial goals? Consider both your short-term and long-term demands, and create some interesting financial goals.

For example, you may want to save a specific amount in your emergency fund within six months, buy a home within the next two years, and accumulate a solid pension for retirement in 30 years. Regularly reviewing your goals will help you stay focused.

Related:

• How To Set SMART Financial Goals That Actually Make You Happy

7. They Avoid Taking on Unneeded Debt

Financially aware women do not rely on credit. Why? Simple: because they understand the high cost of consumer credit, its influence on financial well-being, and how it completely destroys one’s capacity to accumulate wealth.

Certain debts, such as mortgages and student loans, are virtually always inevitable. Consumer debt, on the other hand, is optional—and a lousy one. If you don’t have enough money for a luxury vacation or a new clothing, either save up or admit that you cannot afford it.

Financially aware women pay off their credit balances each month and avoid purchasing items using credit cards that they cannot afford to pay off each month.

8. They are Focused on Increasing Their Net Worth

Financially smart women focus on increasing their net worth since net worth is a true indicator of financial security, and a positive net worth allows you to generate income.

Saving money is the first step in increasing your wealth, but to see real benefits, you must focus on building your assets. In layman’s terms, this simply means purchasing assets that appreciate over time, such as real estate, equities, and bonds.

To find your net worth, deduct your total debts (including your mortgage if you have one) from your total assets (including the value of your home if you own one). This is your net worth.

9. They Make Sure Their Money Works Hard

Financially wise women make long-term investments and never try to time the market. To expand your wealth, you must invest in things that provide a decent return on investment. Building wealth takes time; you cannot afford to just leave your money in low-interest savings accounts.

10. They are Constantly Learning

Financially knowledgeable women understand that your income does not determine your net worth or potential to accumulate wealth, but your financial acumen does.

The most important thing is to learn how to save and invest. Read one personal finance book per month or quarter. Make it a habit to read a money-related article or blog post for at least three minutes each day. You’ll be shocked at how much you can learn in just a few weeks.

11. They Save for Their Elderly Age

We usually outlive men and require care for a longer period of time, but we frequently fail to plan for retirement. The average man contributes three times more to his pension than the typical woman.

We frequently take time away from the workplace to raise children or care for aging relatives, further lowering our efforts. To earn the highest state pension, you must contribute to National Insurance for 35 years, thus work interruptions might cost you in retirement if you do not plan and save for it.

12. They Don’t Think of Money as a Taboo Subject

Financially savvy women are not ashamed to discuss money. Everyone needs money to survive, so why not discuss it? Connect with other women who want to learn about money and create healthy financial habits. When women help one another, everyone benefits!

13. They Appreciate and Value Money

Accept that money management is a critical skill that everyone must master. Appreciating the power of money, increasing your wealth, and focusing on financial goals does not imply shallowness or materialism.

The simple truth is that money allows you to live the life you want. Money, among other things, helps you to buy a home, continue your education, travel, and establish a decent life for yourself and your family. Most significantly, money can help you acquire the time and freedom to live your life on your own terms.

14. They are Generous

Financially savvy women donate to and support issues they are passionate about. They use their money to make a difference. If possible, set aside some of your money to help others. For example, as an angel investor, you could invest in a start-up, establish a charity, or make a donation to a charitable organization you support.

15. They Take a Balanced Approach to Financial Management

Smart ladies avoid wasting money on unnecessary purchases.  They assess the benefits and disadvantages of any important financial choice. They plan ahead of time for large purchases, determine what makes them happy, spend liberally on those things, and avoid the rest.

The ability to control your emotions is critical to your financial success.  Learn to keep emotions out of your financial decisions, as they can lead to poor and costly judgments.

According to Dave Ramsey, personal finance is 80 percent behavior and 20 percent information. The truth is that our emotions can lead to poor financial decisions, and it is critical that you do not allow them dictate your spending habits.

Don’t let your emotions dictate your thinking. Put facts before sentiments. For example, you may be tempted to keep all of your money in a low-interest savings account just because you believe riskier financial products are usually a terrible option. To make sensible decisions, conduct your own research and, if necessary, contact a skilled financial advisor or coach to help you take control of your financial future.

When I recognized my financial habits required a substantial change, I was rather terrified. Nobody has ever sat me down and taught me how to manage my finances. Fortunately, once I started taking stock of my situation and creating excellent financial habits, I felt empowered. There is no better feeling than knowing you are in control of your finances.

Developing strong financial habits is critical for financial success and will have a significant impact on how you manage your money. Which one of these money habits will you adopt?