Why do most people live without any savings and never consider investments?
The answer is simple: Most people are not financially aware. Especially women.
Financial literacy is every woman’s guide to financial independence. While it sounds simple, it’s not. It takes investing time and practice to master how to manage your money and financial affairs. And it starts when you decide to say yes to understanding financial matters.
Once you understand how money works, it’s easy for you to develop healthy money habits and teach others too. Here are the four important lessons on financial literacy.
Wants vs Needs
One of the fundamental pillars of financial literacy is to know the difference between your wants and needs. A need is something you cannot do without it.
For instance, food, water and shelter. Maybe clothing. On the other hand, a want is a good thing to have. Something to enhance the quality of your life or elevate your status. Let’s make it practical! Having a phone is a need but having the latest iPhone 15 pro max is a want. I’m sure you get the gist! The earlier this difference is clear, the faster you are as a woman can embark on the journey to gain financial independence. This brings us to the next point.
Track your Expenses and Create a budget. Creating a budget is easy, sticking to the budget is what tests your determination to be financially free.
Once you start to track your expenses, you will be surprised at where your money is going. Then create a budget. Remember to set money aside for savings, investments and wants. Money is not good or bad. It is amoral: Due to sociocultural factors, women tend to be less concerned, less confident and less interested in pursuing money. Instead, they would rather rely on their men for money. This mentality has to change. And it begins with teaching children (especially the girl child) to have the right attitude and responsibility toward money. Wealth belongs to Long Term Thinkers: Spending money is easy but making money requires skills. Instead of living salary to salary, financially illiterate people (or in this case women ) can try to build wealth. To build wealth, you need patience and discipline.
The discipline to spend less than what you earn and patience for when you save or invest. If you master these superpowers, then you will be able to secure your financial future. What other lessons have you learned from financial literacy?