5 Financial Habits Every Powerful Woman Needs

What is your long-term vision for your financial life? Many of us haven’t thought much beyond the immediate future, meaning what is happening next month.

It is the short-term outlook on our lives that catches up with us in the long run.

As women, it is important to talk about money and develop a positive relationship with it as soon as possible.

Why?

Because we want to have the ability to choose the life that is best for us and have the time to pursue those choices.

These reasons make it critical to take the time to understand and define your financial goals. 

Your goals will change over time, and that is precisely why you need to implement these 5 financial habits as soon as possible. 

These habits will give you the ability to easily transition into new phases of your life as new priorities emerge.

Financial Rules to Live By

Paying Yourself First:

Think of this as your safety fund. I missed the boat on this one for so many years. I was in the habit of paying myself last, because I thought it was better to take care of everyone else first. 

It is important to honor all of your financial obligations; but understand your biggest financial obligation is to yourself first. 

If you do not get in the habit of paying yourself first, what will your future look like? I believe this is the number one habit that will save you from being at the mercy of someone else or being obligated to do something you do not want to do.

It is not about saving lots of money, especially if you are just starting out. It is more important to build the habit of paying yourself first, regardless of the actual amount. You will look back and thank your younger self for creating this habit. 

Create a Spending Plan

How will you know where your money is going if you don’t keep track of it? I know this seems like a very obvious answer, but it is not enough to just notice where your money is actually going every month.

The other component is creating a spending plan that reflects your values and priorities. This requires you to actually make decisions and put systems in place to enforce the rules you have decided upon.

Don’t do what I use to do. I would observe where the money was going and get mad at myself for overspending. I didn’t make any decisions about what mattered most to me in the long-term, so I just spent the money.

Live Below Your Means

It may be hard to believe now, but you will be much happier when you are able to choose the direction you want to go in your life, not when you accumulate more stuff.  

The way to do that is to live below your means and to account for all of the unaccountable things in life in order to yourself breathing room. The more of a gap you can create between what you earn and what you spend, the easier it will be to navigate a sudden job loss, an unexpected medical condition or major car repair.

Living below your means will give you peace of mind when unexpected emergencies come up, because it gives you time to consider your options instead of being forced to react immediately.

Eliminate Debt

I know this may seem like a no brainer, but unfortunately it is too easy to get caught up in the debt cycle. Again, I am speaking from personal experience as a survivor of many financial disasters. 

The obvious answer would be to not take on any debt, but if you find it a bit too late to consider this as an option, take a look at your budget and consider the following:

• Where can cut your spending and redirect the money to reducing debt?
• Can you decrease your housing, transportation and food expenses to pay off debt faster?

Another option would be to think of ways to increase your income in order to reduce debt as fast as you can.

Create and Contribute to Your Opportunity Fund Regularly

The opportunity fund is for all of your big goals and long-term plans. It could contain money for things like the once-in-a-lifetime-vacation you want to take, the business you want start in the future or the ability to take time off of work to write your novel. 

Whatever long-term goals you may have, deciding to create an opportunity fund for yourself will give you the ability to say yes to your deepest desires and dreams in the future. 

Having these financial habits in place will allow you to create a foundation to build a better future.

There is no better feeling in the world than having the time and means to be able to pursue the things that truly matter to you. That is what being a powerful woman is all about.

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