Welcome to the PFDN Blog! Without further ado, let’s dive right into the sizzling tips we bring you today on how to be the Financially Savvy Woman!
Women being the natural caregivers that they are often have to juggle the demands of work, taking care of husband and raising children(if married), maintaining a household, caring for aged parents and still trying to float a business always most often times forget that they exist in the scheme of things. You see, while it is okay that everyone understands what financial planning is all about, women NEED to know that beyond the activities and responsibilities they are saddled with consciously or unconsciously, financial planning is not something they can do away with.
Don’t forget, our goal is to learn, unlearn and relearn everything we can about our Personal finance and what we can do to secure our financial future. As a woman, you need a couple of strategies to help you achieve that goal! So let’s start with the need to understand the role of PLANNING. Get this, your personal financial plan should detail your short-term, medium-term and long-term goals, adequately laid out and how you will reach them. This financial plan should address different aspects of your life cycle no matter what stage you are in in (investing, protection, education, retirement and estate planning), once you are able to identify what stage you are in the life cycle, then it gives clarity on what you need to do in the now, and for later.
The SAVE FIRST and SPEND LATER strategy is at the very core of being an empowered and financially savvy woman; knowing that it is important to put something away for the future before paying for present expenses is so woke and one of the surest path ways to financial freedom.
Hey, woman, let me burst your bubble. It is getting more difficult to save in an economy as ours, with the interest rates as low as 1.25%, and with so many demands and expenses with too many expectations from different quarters. So savings come in different forms, you can save on your expenses, that is the first step. Then the next step is to save towards a goal, it could be an emergency fund, an investment or even getting an asset.
Woman, do the world a favor and OWN YOUR FINANCES…. It is so easy to hand over financial responsibility to your partner or family member and rationalize that you trust them to do what is best for you….. hmm, sister, there is nothing wrong with that school of thought oh, but guess what, It is way better to be aware of where that your money is coming from, where it is going, how it is being used and how you and yours are financially protected. Please do not be sold out on the narrative that a woman has no business understanding money, it is all a wash! If you are married, have regular discussions on the status of your finances as a couple and even as a family. Please understand that your value for money and understanding or belief about money is entirely yours and are valid! Your finances should reflect how you want to live your life now and in the future.
Okay let’s come to the part where you begin to learn that it is not enough to make and manage money, you have got to learn how to multiply it as a woman. We may not necessarily earn great, but with the right strategy, it is easy to make a nice pile from a small sum. How do you multiply, MAKE THE FINANCIAL MARKET YOUR FRIEND! It is so easy to fall prey to quick get rich schemes but sisters, that is not a sustainable path, it is fraught with risks not many of us can handle besides, it is just downright reckless. Why will you want to gamble your hard earned money away like that? There is a less risky path that can be learnt, it requires an education and the resources to make informed decisions are available. Your hunting ground to multiply your wealth is a diversified portfolio that includes stocks, bonds and alternative assets such as real estate, commodities etc. C’mon women, we need to be smarter with our money, the time to do that is NOW, not tomorrow.
Here is one strategy you have to perfect; you see when it comes to being financially empowered, you need to be able to be comfortable talking about money. It does not matter the cultural, religious or social narratives we have been fed, it is okay to talk money, infact absolutely! Ask questions, seek knowledge, be willing to make, manage and multiply your own money, SPEAK UP on money matters because the more women are financially literate the better for us all.
So ladies, whatever your age, it is never too late to start your own financial journey towards securing your future and living a BALANCED life. Women are naturally great at balancing priorities, so all we need to do is apply the same logic to money. It is not about hoarding cash or depriving yourself of buying things you love, but it is about understanding that there is wisdom in delayed gratification.
Take a step in the right direction, begin today.
You can and you should.
Your Personal Finance Coach