August is National Women’s Month and it is the ideal time to sharpen up your money know-how.
“Drawing up a monthly budget and keeping track of your income and expenses on a weekly or monthly basis comes more naturally for some women than others. A few small adjustments can easily lift your financial performance regardless of your skills,” said the Head of First National Bank (FNB) Consumer Education, Ms Eunice Sibiya.
The first steps to becoming a financially savvy woman is not signing up for a course in finance, but rather a change of mind-set and an understanding of your relationship with money.
Ms Sibiya suggested the following tricks that women, with financial flair, can use:
- Women with financial flair do not use money to make themselves feel good. Splurging is an instant gratification that leaves one feeling guilty as soon as one puts her parcels down on the bed.
- Being vigilant about impulsive shopping is a display of emotionally intelligent financial behaviour.
“The only way to fight emotionally driven spending is to put alternatives in its place that tackle the root of the problem. When you realise that your rush to the shops is emotionally charged, ask a friend whether you can pop over, take a run around the block to clear your head or make yourself a cup of tea and work through your emotions.
“When feeling stressed or depressed, a short distraction may save you from a shopping spree you might regret,” said Ms Sibiya.
- Apply the “have-to-have-it” rule. “This rule can save you from incurring unnecessary expenses or debt,” said Ms Sibiya.
Before you buy another item of clothing, ask yourself if you really need it. If the answer is no, put the item down.
- Invest in you.
“The mistake some woman often make is relying on their partner or husband to look after all the finances as well as their future,” said Ms Sibiya.
Make sure you look after your own financial future by understanding what money comes in and out of the household. Be part of the household budget discussion. An annuity is a great way to boost your retirement; you can choose the amount you want to save every month, increase it at any given time and enjoy the tax benefits.
- Do not live beyond your means. Women who are financially stable never spend more than what they earn. One of the easiest ways to do this is to stop carrying debt, in the form of a credit or retail store card.
“With purses full of store and credit cards, it has become easy to spend more than what we are in actual fact able to afford, and the ease of swiping is but the beginning of the problem.
- Be prepared to say no.
“Whether it is your children or your family, women tend to put other people first and their finances suffer as a result,” said Ms Sibiya.
Remember that children do not understand the value of money, unless you are financially disciplined and teach them about financial concepts.
The same goes to lending money to family and friends; rather send them to a financial planner or help them set up a budget and financial goals.
“Each and every woman has the capability of having financial flair. Empower yourself by taking control of your finances: sit yourself down this Women’s Month, write down how you would like to change your mindset and then hold yourself accountable to it.
“Personal financial management is achievable – set your goals and remain disciplined. Strive to manage your finances smarter and see your dreams fulfilled,” said Ms Sibiya.