“The dreams and desires you have are usually only achievable if you have the financial capacity to make it happen.”- Bola Sokunbi
One of the best things about starting a new year is setting goals for yourself along with resetting your mindset as you move forward. Over the past year, Covid-19 has wreaked havoc on the country’s health as well as economy. Although everyone has seen a potential loss in income, women are facing this pushback even harder because of unpaid care and an increase in domestic work. Women make up the majority of the employees in many of the industries that were hit the hardest, including food services, self-care services, retail, and entertainment. While a lot of us ladies focus on our health and fitness going into the new year, finances seem to get neglected. Financial goal setting is imperative to achieve the life you have envisioned for yourself. By not having financial goals, you’re more than likely going to spend more money than you should, potentially leaving you in a bind when unexpected bills or expenses pop up. So how can we move forward and make sure our funds are in check? Here are some financial tips that will give you a head start.
1. Managing Your Everyday Expenses
One of the biggest tools that you can use to change your financial future is managing your everyday expenses. It gives you the power to make changes not only to your bank account, but your mindset as well. By checking your budget daily you are preventing yourself from overspending, as well as maintaining control over your money. Tracking your spending whether it be via a financial tracking sheet, budgeting app, or budgeting planner is beneficial. Doing this helps you know exactly where your money is going and can ensure that you spend wisely. Also, by tracking your expenditures you are allowing yourself to understand why and how you’re in debt.
2. Prepare For a Rainy Day
We can never be sure of what financial burden we might have to face in the future. This is where emergency funds come in handy. It is important to make sure you have money set aside, preferably in a second savings account. This is where you can consistently deposit money, even small amounts, to help you build up your ‘rainy day’ fund over time. A rainy day fund signifies a pool of money that we can use to pay for expenses when unexpected events occur.
An example of the need for an emergency fund is the current situation created by the global pandemic. Covid-19 put the country into lockdown and a lot of people, women especially, were furloughed or forced to work from home. Although, outside and non-essential activities were shut down, bills were building up. Instead of depleting your regular savings or checking account, your emergency fund is there for just that, an emergency.
3. Understanding the Financial Market
There’s a lot of moving parts when it comes to understanding the Financial Market. One goal for women is to multiply their money, while understanding what they are potentially investing in. Many of us have been presented with forex trading and bitcoin, and while these companies are genuine, scammers try to take advantage of women. Instead of giving into this easy buy, there are other tools women can take advantage of to educate themselves on these services and resources. If you’re looking to diversify your portfolio, educating yourself on stocks, bonds, and alternative assets such as commodities and real estate can help you multiply your wealth.
4. Financial Planning
When it comes to financial planning having a financial advisor or an accountant is extremely important. As you know finances can be difficult and deciding which one to choose can be even trickier. Accountants work more with auditing, financial forecasting, and putting together financial statements. Depending on your needs, such businesses as Ageras can help you keep your finances intact. On the other hand, financial planners help individuals with wealth management and retirement planning. While accountants are usually detail-oriented and good with numbers, financial planners’ sweet spots are sales and networking. Knowing the difference is extremely important when choosing what can help your financial plans!
It’s not too far into the year to get your finances in order. Don’t forget that women are naturally great at being strategic, balancing multiple priorities, and having sound logic. By following these 4 tips and most importantly staying educated on how to plan financially, you can thrive in 2021 and on.
Images: Getty Images, Stocksy
