If wishes were horses, we would all be rich…
But does that mean we are all doomed to be poor or that some of us are destined to be poor?
No, it simply means that we cannot become rich by wishing, we have to work for it and more importantly, be financially savvy.
There are so many habits that make women go broke; if you engage in them, it is no surprise you are struggling financially.
The good news is that you can make a change; all you have to do is know the habits that make women go broke and avoid them.
What are the habits that make women go broke?
- You lack a financial plan: One of the habits that make women go broke is lacking a financial plan.
Whether you are a salary earner or a business person, it is important that every month (advisably), you make a financial plan or what is called a budget.
Make a comprehensive budget on what you are going to save, what you are going to invest, how much to spend on your needs, what to set aside to give, what to set aside for luxury and for miscellaneous.
It might seem like a bad financial plan to set money aside for luxury but for a well-balanced life, a little “play” is necessary.
What becomes an issue is if you dip into your savings or spend more than you budgeted on luxury.
2. You are an impulsive buyer: A lot of women are guilty of this, especially if they are into fashion. There are just so many things that are pretty that catches our attention.
It is even worse now with so many people advertising on the internet. If it is part of the money set aside for luxury, you can indulge in one or two.
But when you start going beyond your budget and even dip into your savings to buy things impulsively, that is a bad financial habit and it will only make you broke.
It takes serious discipline not to buy impulsively but it is not impossible; you can do it.
3. You lack saving culture: Financial experts will tell you to save first and spend the rest.
Personally, I have found that advice to be very useful. If your plan is to spend first and then save the rest, the truth is that you will likely never save or even if you do, you will be saving less than you actually should and it will be inconsistent.
Saving is not really about the amount but the consistency. So, once you get your income, save the amount you have decided on before touching the money for other things.
If you are religious and a “tither” like I am, then you can pay your tithe first, save, then make a budget on how to spend the rest.
It might seem like the rest will not be enough but it will be. I have discovered that man’s needs are insatiable and the more money we have, the more the needs appear.
Whatever amount you have left after saving will be enough for you EXCEPT in cases of unforeseen circumstances.
4. You buy more than you need: I have already explained that I personally don’t think indulging in a little luxury is an issue, as far as it is within the plan.
But if you make a habit of spending more than you need, trust me, you are setting yourself up to keep going broke.
Try as much as you can to spend money more on needs and less on wants.
5. You are a borrower: Some women make a habit of spending beyond their income and then resort to borrowing even before their income comes in.
The problem with that is that you will be pushing today’s financial issues to tomorrow.
My theory for borrowing is that it has to be a matter of life and death or at least, an emergency – that is, if you are not taking a loan for business.
Spend within your means and you will hardly ever have to borrow. The problem is that when your income does come in, you are likely to spend more paying back what you borrowed instead of planning your life with it.
6. You don’t give: You are probably surprised this is in the list but I am a strong believer in giving and that is because it is tested and tried.
Even if you are not religious, there is a law of sowing and harvest that we all can see in the universe.
If you are a giver, you are likely to get more than if you aren’t. That doesn’t mean you should give everything you have; wisdom is profitable to direct.
Personally, I suggest including it in your budget and sticking by it EXCEPT in special cases.
Financial intelligence is very important, especially in these times. We have great examples of wealthy women who are doing great things and there is no law that says you cannot join the list of wealthy women. All you have to do is work hard and avoid habits that make women go broke.
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