Both men and women need to be financially literate but the need for women is higher. Women constantly juggle many activities at home and work. From childbearing to maintaining the upkeep of the home, and still actively doing office work. These activities take up so much of their time and money that they end up paying little or no attention to their financial wellbeing. Simply put, women end up going through life with no income of their own, little or no savings and no investment to boost about.
So how can you take control of your financial future, you may ask?
All you have to do is say yes! to understanding financial matters today. Here are 5 components you can use to start managing your money the right way.
The first step is earning your own money. It means you will have more money at your disposal to spend and save. If you think that your salary is too small, then have multiple sources of income. You can sew very well, do it as a side business or hustle. Open an online business and sell your ready-to-wear clothes. With the increasing demand for skilled workers, women have more opportunities to increase their income. An independent income separate from oga’s money is crucial to being financially independent.
Remember that MI song, money slow to enter…money quick to leave. I’m sure you get the gist! Making money, legit one is hard but spending it is so easyyyyyyyyyyyyyyyy! If you are not careful, you can splurge your full salary in one shopping outing. Scratch that! You can do that while seating in the comfort of your couch.
That’s why you need a budget!
A budget helps you to map out how and what you want to spend your money on. Allocate your budget for both fixed(utility bill, savings, rent)and variable expenses. Fixed expenses are bills that stay the same every month (utility bills, rent) while variable (food, entertainment, etc.) expenses and those bills that fluctuate every month.
You can’t talk about being financially secure if you do not have savings. For women, in particular, healthy or fat savings will give you peace of mind and act as a “cushion” in times of financial stress and uncertainty. For example, your phone could get lost or stolen. Instead of waiting for someone to buy you another one, you can dip into your “emergency fund” to sort it out. Or when you come across an opportunity to buy a heavily discounted item you have always wanted. If you don’t have savings of your own, you might miss out on such a great opportunity.
Contrary to popular opinion, borrowing money is not bad. You can borrow to enhance yourself by learning a new skill or taking a professional course. What is considered a bad debt is borrowing for consumption like buying the latest iPhone 13 pro-max or the latest fashionable lace for Owambe. These kinds of debts can be financially crippling. You will never secure your financial future by spending recklessly.
Tip. Check for interest rates before taking any loans from the bank and fintech. Remember, the lower the interest rate, the faster you can clear out your debt.
A good investment is a jewel in the crown. Get your money to work hard for you! Women always think it takes millions to secure a good investment. Not at all! Use that N3000 to get shares and in the next 10 years, you will be surprised. Invest in assets such as gold, stock, cryptocurrency, and real estate.
You can also consider opening a pension account or protecting your life and properties with insurance. Doing these means you are planning for the future. And your future self will thank you for it.
Financial literacy is your ticket to making good financial choices. Understanding core areas of earning, spending, saving, investing, and protection, is the foundation of healthy spending habits and accelerate your way to wealth.
Which of these components are you practicing, please tell us in the comments section