Every working woman’s dream is to attain financial freedom. As we work daily, towards achieving our ultimate goal of becoming so financially secure to live a full life on our own terms, we are fully aware of the important role money plays in this dream of ours.
In today’s world, due to social changes, women are becoming more aware and are accepting the possibility of attaining financial freedom in their lifetime. We are reclaiming our places in society, demanding equal pay, and charging our worth. While this is such an amazing sight to behold, a lot of us still lack the financial intelligence it takes to build sustainable wealth.
Building sustainable wealth goes beyond negotiating a higher pay, it involves understanding how money works and making the best decisions for your finances based on this information. According to Samuel Beckett, “Life is a habit. Or rather life is a succession of habits“. Our habits are very powerful, just the way bad habits can ruin us, good habits can help us succeed in life. This isn’t any different when it comes to our finances.
Cultivating good financial habits helps us tremendously in this journey of financial freedom. Today I will be sharing with you some important habits every woman should cultivate while building sustainable wealth for financial freedom.
7 habits to build sustainable wealth
1. Define your Financial Goals
Setting goals for our life is something we practice yearly, monthly, and so on. Setting financial goals for yourself is also very important. Get into the habit of setting yearly, quarterly, and monthly financial goals for yourself. Pro Tip: When setting financial goals endeavor to be as realistic with yourself as possible. Your goals are there to help propel your growth and not to depress you. Set goals attainable realistic goals and be ready to work towards achieving these goals.
2. Become Financially Smart
Financial intelligence is simply the ability to know the best ways to spend your money, you can only become financially intelligent through gaining financial knowledge. Endeavor to take out time to read books on personal finance, read articles, join communities, and so on. You can also speak to a financial advisor or educator about areas of confusion and if you have difficulties in defining your financial goals.
3. Live within a Budget
Unlike popular perception, to live within a budget isn’t deprivation. A budget simply helps you define your finances, it is a plan that helps you spend your money better. Budgeting helps you balance your expenses according to your income. According to Warren Buffet, “A wise man lives below their means and a foolish man lives above their means“. Living below our means is a smart financial move and a budget helps us achieve this. One of our goals as women working to build sustainable wealth should be to live below our means as this affords us the opportunity of saving regularly from our paycheck and also investing. Every month endeavor to create a budget and be committed to using it. Also, check your budget regularly to ensure you are not overspending and adjust accordingly.
Cultivate the habit of saving, a lot of women spend money so freely that they forget to save. Wealth building all starts with the ability to save regularly. Ensure you have a separate account for your savings. Saving regularly does not only help you build wealth, it also helps you build your level of discipline which is great for every individual, as regular saving demands a certain level of discipline.
5. Be Careful with Debt
While it will be super easy to tell you to don’t incur debt, that will be a very unrealistic statement, as debt is incurred in many ways and based on many different events. However, being careful with debt is important as debt causes a level of uncertainty, and in most cases a great level of anxiety. If in debt, ensure you take out time to figure out all debts owed and their respective interests. Also, make a debt repayment plan to also focus on paying off high-interest debts first. Be diligent with your debt repayment installments and try as much as possible to not miss any payments. If not in debt, do your best to not incur debts, this can be achieved by sticking to a budget and living below your means. Also, it is important to always review the repayment terms of any debt before signing the dotted lines.
6. Get Investment Savy
Saving money and earning a higher salary alone cannot help you attain financial freedom. Investing has been proven to be a safe way to build wealth over time. It is important for us to educate ourselves about different investment opportunities. Building an investment portfolio is a good move and you do not have to do this all by yourself, talk to experts in the field and seek advice from financial advisors to give you all the information needed. Pro Tip: Do not invest in anything you do not fully understand. Make it a habit of doing your research and seeking expert advice on investment opportunities.
7. Talk to experts
You do not have to figure out your finances alone, be open to speaking to experts. Discuss your financial difficulties with financial advisors, these experts are trained and have the knowledge to help troubleshoot any challenges or difficulties you may have. There is no shame in having discussions about your money, as speaking to industry experts can go a long way to in helping you figure out your finances.
As you can see, building sustainable wealth for financial freedom is attainable. The secret, however, is all in our cultivated habits. With discipline, we can all build good money habits that will positively transform our finances forever. Remember just as Rome wasn’t built in a day, these habits can only be cultivated over a period of time. We just have to make it a priority and work on it daily with intent and discipline.