Welcome back to your one plug to all things relating to personal finance and how to be on your way to becoming a financial boss chic…..
Did you go through our last blog post where we discussed about ‘common financial challenges women face’? If you did, then we continue with this post discussing ‘common financial missteps women make’…..
Any millennial here, do you remember that ‘Biggie’s popular rap line… ‘more money more problems? Sounds like a cliché, but it is so true… Interesting thing is these missteps occur at various stages of the life cycle of women. Let’s start with the millennial woman. In your 30s you are most likely well settled in a career or doing life as an entrepreneur, it is assumed that you are earning, in a marriage, raising kids and having dependents. It is also assumed that, at this age, your routine is fairly stable and even predictable, but the problem is sometimes we get overly too invested in the day to day routines, we forget there is a future and the honest truth is, the day to day is fraught with way too many demands and financial pressure.
So here is misstep 1 – not seeing the bigger picture, which is learning to not only make money, but manage and multiply the money for the future.
Misstep 2 for most millennials is also leaving all the handling and managing of their finances to their partners. Yeah, we get that finance is pretty boring and can be quite challenging for most, but that is no excuse to not get involved and know all you need to know about your money, where it goes and what you want to do with it.
Let's jump to the 40's
In your 40s, you are most likely at the very peak of your career, caring for children and also ageing parents especially in this part of the world, this is no time become overly flamboyant and not dig in on your finances; rather it will be a huge misstep to dial down on savings or investment.
Misstep 3 for women in this age bracket will be to think earning more means the opportunity to spend more, hence getting complacent on their savings and investment routines.
Misstep 4 will be not having a life Insurance and Misstep 5 takes us to not settling outstanding debts and of course Misstep 6 will be to not take into serious consideration, your contribution towards your retirement funds.
The Gen Z is not left out; it is easy to think you have all the time, and to fall into the trap of finally being able to earn real money so it is meant to be spent lavishly, that will be not only irresponsible but a mistake one may keep paying for in the future. Having financial knowledge in your 20s gives a young woman the best opportunity to start early to building a nice financial nest for herself. There is nothing cast in stone that suggests one must retire in their 50s or 60s. Too many times, our career robs us of the opportunity to really enjoy life or even do what we truly have a passion for. However, that can be remedied in the future when one does not have to worry about the state of their finance.
Misstep 7 will be that most Gen Z over pay for their accommodation and against prioritizing their financial resources towards building a solid financial foundation.
Misstep 8 cuts across board of all age bracket; as women it is easy to trust a reckless spouse or partner with the family’s finance. We encourage that communications should be open to encourage transparency and financial security for all.
These missteps are not limited to these, we trust that you will take the time to take a look at how you are managing your finances and be open to finding better ways to do better.
Don’t forget, achieving this is not as hard, but it does take commitment though..
Go strong! Be the smart, savvy and boss lady!
Your Personal Finance Coach