Ever wondered why some women are better than the others at handling finances? Is managing money in a better way rooted in genes? Are some just more intelligent or more qualified? A bit of both perhaps. A 2017 Fidelity study shows that women save a larger proportion of their income than men. Another study built on this financially savvy narrative, pointing out that women participate in greater numbers in financial wellness exercises – such as retirement planning.
Handling your finances efficiently is part of a smart lifestyle. Financially literate women achieve it by practicing it on a daily basis. It’s a habit. Just as you take the time to address the effects of stress on your mental health, it is essential to prioritize your financial health.
So what is that these smart women do? What makes them better?
Let’s find out what we should follow in order to handle our money better.
- Keep lifestyle costs in check
Often, women may be labeled as spendthrifts. But a smart woman knows how to prioritize. She keeps a check on her and her family’s spending habits. A financially intelligent woman also knows when to say no. She spends wisely and doesn’t fall into the temptation of unrestricted indiscipline, retail therapy, or the like. Financial smartness is determined by the ways we manage our expenditure and our lifestyle. A smart woman tends to follow a set budget without compromising on the quality of life.
- Deal with your Vices
Without meaning to stereotype in any way – most women do enjoy shopping a lot more than men. Again, this isn’t stereotyping – science and data-backed studies back this up. So, as part of a gender that may make extended, impulsive purchases, like getting a coffee before work or a drink after work, smart individuals need to learn to deal with such vices. Smart women keep low-cost substitutes within reach, which help them curb unnecessary spending.
Catching up with friends over a happy hour is important, but making a routine of grabbing drinks or food just because it’s convenient is not what a financially smart woman would do. Don’t hit up the vending machine for a snack; keep a bag of almonds or fruit gummies in your purse.
- Emergency Funding
Whether it be in the form of FDs or gold, which can be liquidated at any time, or cash stocked on the top shelf of the closet, women generally have considerable savings In addition to these, most financially smart women have an emergency fund, separate from their savings. An intelligent woman hardly ever panics. This is because she always has a contingency plan. She is calm always because she knows that she is ready for an emergency.
- Convert your jewelry to gold investments
Nobody’s against physical gold or silver, and of course, it’s great that you can both afford them. But investments are the smarter way to save. In fact, according to Canadian fintech startup Mylo’s data, women are twice as likely to avoid investment losses as men. Safe to assume that diversified, tried-and-tested investments like gold help.
With commodity investments like gold, you can earn through interest and save by cutting the making charges of physical jewelry. Research thoroughly and decide how much you should invest in gold investments, and how much you should spend in buying physical jewelry.
- Keep a tab on recurring costs
Of course, you can put your internet or phone bill on auto-pay; it is hassle-free. But don’t just forget about it indefinitely. Always schedule a time to reassess your monthly bills. Research and negotiate your recurring costs; it helps you get better rates: insurances, cell phone bills, or even Netflix subscriptions. You’ll be surprised when you get new and improved rates, once you can cancel the old ones.
For women relying on credit to bolster their financial success, monitoring interest rates is another challenge. A considerable amount of money can be saved by refinancing your loans when you can take advantage of a lower interest rate. You can check out EarlySalary; it provides instant, superior, short-term loans at low-interest rates.
Ladies, This List Isn’t Exhaustive
While these habits might help you get started, remember that it’s not always one size fits all regarding spending and saving. You can figure out a long-term plan that fits your lifestyle by taking time to explore your relationship with money. You can also consider taking professional help from organizations, like EarlySalary, where they provide loans and solutions for almost all kinds of emergencies.
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