As the year 2021 is fast looming, some people have the sense of being given a fresh start to correct some mistakes they made in the previous year. They start by making notes, either mentally or on paper, their new year resolution that they are determined to accomplish. Though some might stumble over the first steps of change and quietly retreat to old, unhealthy habits.
Setting goals and abiding by them without defaulting is totally not easy, but 50% of your goals can be achieved when you are determined and persevere. Some of the goals are as follows: changing your job, starting a business, setting financial goals, furthering your education, etc.
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Setting a financial goal is important especially for women who are struggling to gain financial freedom. In as much as some women are financially inclined, some are still struggling with their finances. Reason being that they lack some basic tips about personal finance. For example, budgeting, saving, paying a debt and investing. This lack of financial tips usually makes it difficult for them to handle their finances which can have a negative impact when it comes to creating a solid financial future for themselves.
The good thing is that you can still get your financial life on track for the year 2021 if you are still striving to do so. Here are some Financial tips that will give you a heads-up.
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Here are 5 Financial tips for women in 2021
1. Financial Planning
When setting a financial plan for 2021, it is important to detail what you want to achieve and how long it will take you to actualize it. Personal finance experts usually advised that you need to identify your short-term, medium-term, and long-term goals and strategize on how you can reach them.
Your financial plan must address different aspects of your life. (savings, investing, education, insurance, and estate planning). When you are setting a financial goal, it is important to note how much it will cost, and the date you want to achieve it.
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2. Manage your everyday expenses
Women make 75 per cent of retail transactions in Nigeria. This means they often have a good idea of where their money goes. However, it is a good idea to make a list of your regular and essential expenses, so you know the minimum amount of money you need to “keep the lights on”. Also, you need to understand your spending on items with greater variation in cost and track your expenses for at least two weeks to understand your spending patterns.
To make tracking your expense easy, you need to look at your bank statement and bills for 2020 to help you figure out how much you need to set aside each month for your expenses.
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3. Save first and spend later
The Save first and spend later strategy is 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 pathways to financial freedom.
You can decide to save with a commercial bank, an online savings platform or buy a piggy box to enable you save at home, whatever works for you.
Saving is important for any woman who wants to gain financial freedom. As you can save towards a goal, which can be saving towards an investment, getting an asset, or even furthering your education.
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4. Prepare for a rainy day
Putting money aside for unexpected costs and emergencies improves your ability to withstand financial shocks and gives you peace of mind. We might not know exactly what unexpected costs we will face in the future, but we can be sure that we have money set aside for it.
A ‘rainy day’ fund is a pool of money that we can use to pay for expenses when unexpected events occur. Putting aside money regularly, even a small amount, will help you to build up your ‘rainy day’ fund over time.
A major lesson that the event of 2020 taught us is to have an emergency fund. As the major happening of this year took us unaware. For example: If you put aside just 500 daily, you will have savings of N182,500 in a year. The more money you have in your ‘rainy day’ fund, the better prepared you will be. Remember, any money saved for a rainy day is better than none.
5. Make Financial Market your friend
Another Financial tip for the year 2021 is to learn how to multiply your money as a woman. You may not necessarily earn great, but with the right strategy, it is easy to make a nice pile from a small sum. The best way to multiply your money is to make the financial market your friend. A lot of scammers are out there trying to reap people off their hard-earned money in the name of trading on forex/bitcoin.
Though, these digital currencies (Forex/Bitcoin) are genuine, but some miscreants are using them as an avenue to scam people. Some women are so easy to fall prey to quick get rich scheme, nevertheless, it is not a sustainable part as it is fraught with risks not many people can handle.
There is a less risky path that can be learned, it requires an education and the resources to make informed decisions. Your hunting ground to multiply your wealth is a diversified portfolio that includes stocks, bonds, and alternative assets such as real estate, commodities etc.
In a nutshell, if you have been mismanaging your money as a woman, it is not too late to get your financial life together and live a balanced life in 2021. Women are naturally great at balancing priorities, so all you 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.
Thanks for your thoughtfulness.