3 Steps Towards Financial Freedom For Women
Financial independence for women is getting more and more important — that’s why, here at FinMarie, we never tire of picking up the topic. Actually, we whole-heartedly invite you to take a glance at our posts on how you can
- change your attitude towards money,
- negotiate your salary more proficiently, and
- find more time for your finances.
If the mental and monetary presupposition are set in your favor, you can take the next steps towards financial independence for women that we consider the most crucial ones.
Financial Independence For Women: Self-Sufficiency! — Step 1
The first step that makes women financially free is to assure that they are not depending on other people’s money. It’s about becoming self-sufficient. You’ve achieved the status of self-sufficiency, once you own enough money to cover all your expenses with your own assets.
Do your parents or relatives support you financially? Or are you even depending on your partner’s or husband’s wealth?
In this case, it’s about time to make some changes. In times of increasing divorce rates, a husband is neither a reliable way of safeguarding the future nor of planning your retirement. Ensure to be able to sustain yourself and your children when things get rough. And as spouses and parents ask yourselves: are we really independent? Can we cover all costs at any time without having to ask for support from relatives.
Open a separate bank account where you’re saving up your nest egg. No matter, if you have to quit your job or your relationship goes down the drain — with this tactic you are and, what’s maybe even more important, will be self-sufficient. See to preferably put aside an asset of at least 3 months’ worth of salary, 6 months’ worth is even better.
Financial Independence For Women: Create Stability! — Step 2
Once you’ve reached your first savings target and put aside your six net salaries, it’s time to take the second step towards financial independence for women: create stability!
First of all, this requires you to take care of your liabilities. There are good debts and bad debts. Good debts result from investments that create a revenue or gain value over time. That’s, for instance, when you pay for an (expensive) advanced training or build up your own business.
Bad debt is when you’re currently holding installment loans or financings, paying back liabilities or credit card bills. Hence, it’s the sort of debt that can easily spiral out of control. If you have bad debts in your life, think of a strategy to get rid of them as soon as possible, maybe by converting a debt or by raising your installments.
After you have successfully dumped your liabilities, you may now proudly pat yourself on the back. You’ve saved up a small nest egg and transformed your financial minus into a huge plus by settling your liabilities. This provides security and stability. You’ve come a long way and have made headway on the road to financial freedom for women.
Financial Independence For Women: Spend Money! — Step 3
Next up is what women according to stereotypes allegedly do best: spending money! It might sound contradictory at first. How should spending money make women financially free?
Well, see, if you keep your money in a coin bank or a bank account, its value decreases. This means, one Euro today might be worth only 80 Cents within just one year. So, in consequence, it does, indeed, make women financially independent, if they spend their money.
However, it’s always important to spend your money wisely, of course!
Let’s say, you love to buy expensive clothes. That’s perfectly fine, as long as you consider the resell value of all your luxury handbags, costumes, shoes, and more. Some luxury items — especially purses and watches — are even considered investments, because over time the become rarer and rarer, so collectors and aficionados are willing to pay good money for them.
But the best way to spend money, is, of course, to use it to buy funds, shares, stocks, and bonds. Because those have a sustainable effect and make financial independence for women more tangible than, say, Louis Vuitton.
If you want to know more about how to most profitably spend your money, while staying as flexible as possible, and avoiding risks that might make you lose your hard-earned stability and self-sufficiency, have a chat with our FinMarie investment consulters:
Lookout On Financial Independence For Women
The road to financial freedom for women starts the very moment you’re capable to spend your money self-determinedly on what you want and need without fearing it might threaten your financial existence.
Real financial independence is when you’re able to live off your yields and returns in a way that working for you is no longer mandatory.
So, cut your own path with confidence and walk the road to financial freedom without compromise!
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