“Habits are important. Up to 90 percent of our everyday behavior is based on habit. Nearly all of what we do each day, every day, is simply habit.”~Jack D. Hodge
Some women seem never to be broke and have made wealth from seemingly nothing. The truth is they are just plain smart with their money and have disciplined themselves to be accustomed to some habits.
They may not be super wealthy per se, but they have through these habits created enough financial stability for themselves that they never have to struggle or think about ever going broke.
Do you want to be that woman who never goes broke, here are some helpful habits of women who are never broke;
1. They Live Below Their Means
No matter how much you earn, you cannot achieve financial independence without spending less than you earn. As a woman, there is a tendency that as your income increases, you may increase your expenses and make extravagant choices.
You may have fancy cars, designer clothes, and exquisite accommodation but you may still not be close to having financial independence because you have not lived below your means and did not give enough room for savings and investments.
Focus on yourself and do not try to compare yourself with friends or colleagues. It’s a popular notion that if you cannot afford to buy a thing three times consecutively and comfortably then you really cannot afford it.
As a woman, when you are just starting in your career, keep your expenses below what you can afford and as your career progresses, avoid increasing your expenses proportionately to the increase in your income.
2. They Have Financial Goals
Nothing remarkable stands without a feasible goal and to avoid going broke as a woman you must have a Specific, Measurable, Attainable, Reliable, and Time Conscious goal.
Your financial goal should consist of where you want to be financially in the next 6 months, 2,3 or 10 years; and how you hope to achieve these goals. I must state that you must write down the goals and state deadlines alongside.
This creates a sense of consciousness and urgency in your mind. In setting your goals, create a budget that would consist of your income and your expenses.
Write down how you plan to increase your income maybe by taking up a new course needed for a job promotion, learning a trade, or mastering your skills better.
Write down the most important things so you don’t find yourself spending frivolously. In your financial goals should be plans on how much you intend to save and investment plans. Debt sucks really but lack of financial goals is what leads to getting stuck in debt. Start to draw up your financial long-term and short-term goals now and you will never go broke.
3. They Know How To Prioritize
In prioritizing, you must first know your financial standing. Do not prioritize based on anything else except your actual income. To never go broke, it is important to know the difference between a need and a want. Your priority is to establish an immediate obligation fund.
What I mean by this is making sure you have enough money to cover your expenses until your next earning or paycheck. If you get paid at the end of the month, you should have enough money to comfortably sustain your feeding, transportation, utilities, loan offsetting (if you have any) for the whole month.
I should remind you that your immediate obligation fund does not involve the purchase of a super double drawn bone straight hair. Another priority is saving up an emergency fund that should make up of about 3-6 months of your earnings so you are not thrown off balance when an emergency arises.
Investing is a top priority. You can do your research on how to safely invest your money or you could inquire from trusted professionals or your bank. Prioritizing involves a great deal of discipline and only a strong-willed woman can keep up. I trust you are one!
4. They Say No To Emotional Spending
Emotional spending occurs when you purchase something you don’t need or want as a result of boredom, unhappiness, a feeling of incompetence or stress, and sometimes happiness. It’s not a bad thing to spoil yourself from time to time as long as it does not affect your financial goals.
Avoid impulse buying. Next time you are about to purchase that item you’re not sure about, wait for at least 24 hours and there is a high tendency that you would forget about it.
Limit yourself exposure to the situations and places that tempt you to spend. If you find yourself spending more when a particular person is around, try to schedule expenses-free activities with that person. Be accountable to yourself so you get a check when you find yourself about to spend emotionally.
You could speak to trusted friends and colleagues about your decision to avoid emotional spending so they caution you when necessary.
Another helpful way is to keep a list of your important priorities so you stay cautioned. For example, keeping a sticky note inside your purse listing your financial priorities so when you get too excited about your income and you are about to buy that expensive jewelry online, you see the sticky note reminding you of your almost-due-rent right above your credit card in your purse.
5. They Track Expenses And Save Up
Cultivating a habit of consistently tracking your expenses will help you control your finances and promote the habit of saving. Tracking your expenses helps you identify and eliminate wasteful spending habits.
You cannot track your expenses without a budget. The truth is if you do not keep track of your income and expenses, you will always be wondering where it all went. Make it a habit to check your account statements to see if it’s in line with your budget and financial budget.
There is a savings rule known as the 30-day rule which states that instead of making an unplanned purchase, you instead keep that potential purchase for 30 days and deposit the money in your savings account instead.
If after 30 days, you still feel the need to purchase that item, you can go for it. Start saving now. Saving is a habit that every woman must cultivate irrespective of the fact that you feel your income is not enough. Drop unnecessary shopping and re-examine your expenses.
6. They Begin With The End In Mind
I believe you understand by now, the need to have a written and feasible financial goal. You cannot picture an end without planning at the beginning. Beginning with the end in mind here is to decide where you are going and take the necessary steps to get there.
It means beginning with a clear destination in mind. To never go broke as a woman, you must be strong-willed and determined. Determination involves controlling and deciding the outcome of something.
It is moving in the fixed direction of your goal and its achievement without getting distracted by impulse buying or frivolous spending. Wasteful spending that leads to being broke happens because you do not have an end in mind or a financial goal you are focused on.
7. They Have Multiple Streams Of Income
There is an adage popular among the elders that “the road to the market consists of more than one.” This means that if one way seems to be blocked, you are not expected to get stranded because there are numerous other ways. As a woman who never wants to go broke, you must not depend solely on one source of income.
You must have at least one additional source of income. It is risky to have your job as your only source of income because the inevitable might occur. Sometimes it is just impossible to cut down your spending any further; you must create a new source of income to keep up.
There is no limit to the amount of income a woman should have so as long as it does not get overwhelming or cumbersome and produces positive cash flow.
You can diversify your investments, offer a service, invest in real estate, or even start a business in something you are passionate about. There are so many easy ways on how to make more money, take advantage of what you are good at to solve other people’s problems and get paid for it. If you are dishing out value, I assure you there is a very low tendency in you ever staying broke.
Be creative and distinctive. Your colleague at work started a hair business does not mean you should do the same. Take time to think of what you are really passionate about, make a plan, generate capital, and watch your new stream of income bloom.
8. They Figure Out Their Needs Versus Wants
Needs are those things you need for basic survival while on the other hand, a want is something desirably good but not necessary or essential for survival. To be more practical, a need is saving up for your rent and a want is a Louboutin shoe that would look nice on you and match your outfit for your next party but costs a fortune (part of your rent maybe).
To never go broke as a woman, you must learn to discipline yourself to set boundaries and know the difference between a need and a want. As women, we like to look good, and always radiate that boss chick vibe which pushes us to spend recklessly most of the time.
Of course, you must look good, but sometimes you want something and you have the money but deep down you know it’s not necessary and you can make do without it.
You could get that Louboutin shoe and days later there is a high possibility you are thrown out of your home or you have to resort to begging. Don’t forget, without your needs, you cannot survive but you can live comfortably without your wants except there’s a new designer shoe that houses people that I don’t know of.
9. They Develop A Positive Money Mindset
Your money mindset is a unique set of beliefs and your attitude about money. This is what drives the decisions you make about spending, saving, and financial life.
Your mindset is one of the most powerful forces you have when it comes to your accomplishments in life. Joyce Meyer in one of her books said “you cannot have a negative mind and a positive life.” Whatever perspective you hold towards money is exactly how it would work for you.
To develop a positive money mindset, define your financial goals. I must add here that you shouldn’t set myopic financial goals.
Your goals should not be limited to your income only. Ask yourself questions like “What is it that I want to accomplish in life when it comes to money?” Look for positive examples to follow. Read books on financial intelligence. Attending seminars on financial awareness.
Your belief about money is a leading contributor to how you view your financial situations. If you focus on the right systems and mindset instead of working so hard with little or no financial progress to show, you will find your results more productive and you will never go broke. Again, you can never go broke with a positive money mindset.
FOR YOU:
Hey there! Thank you so much for reading this article. I believe that you are going to take a few points, and make them your reality.
Habits are essential parts of every human existence. Hence, it is essential to know the habits that you allow in your life. Cheers to never going broke, ma’am!
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