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Women\u2019s week has commenced. As a person, I have always found these \u201cdays\u201d sort of ridiculous. My reasoning \u2013 so, women do not matter rest of the 364 days?<\/p>\n
However, for the first time, Women\u2019s Day and Women\u2019s Week are very very special to me. 6 other female Personal Finance bloggers (Melanie, Liz, Kristine, Penny, Ms. Financier and Emilie) join me for a very special series of 3 posts (all of this week) to discuss women, money and what got them so interested in it. Before reading ahead, I urge you to read more about all the contributors right here<\/a>.<\/p>\n The post today, talks about the basics \u2013 why women should manage money, the personal finance basics they must know about and some personal finance habits to cultivate.<\/p>\n Read on\u2026<\/p>\n \u00a0<\/strong><\/p>\n Melanie @ Dear Debt <\/strong><\/a>says:<\/strong><\/p>\n Yes! I am newly single and manage my finances on my own. I think it’s important for women to manage their finances for so many reasons! We’re living longer, making more money and have to manage relationships and family life. Having our finances together gives us options<\/p>\n Liz @ Chief Mom Officer<\/a> says:<\/strong><\/p>\n Yes, I manage my families money \u2013 and I always have. Throughout my sixteen plus years of marriage, my husband has never really been interested in all this financial stuff. He always listened politely while I would talk about Warren Buffett<\/a>, or wisdom from the Bogleheads<\/a>, or whatever the financial news of the day was \u2013 but he never sought it out. In fact, when we married he was a financial bobble-head \u2013 the kind of person who never saved a dime, lived paycheck to paycheck, and even sometimes bounced checks. It was my good financial management that brought him out of that and into the savings-conscious person he is today.<\/p>\n It\u2019s important to me because I\u2019ve always had big financial goals and dreams. Even back when I was in community college<\/a>, working full time and going to school full time, I dreamed of becoming a millionaire before I was forty. Since I only made $22k US dollars per year at the time, it seemed impossible. But I had read the books, done the math, and I knew it most certainly was possible. So, I focused on my education and job \u2013 eventually obtaining an MBA and my current position as an IT program manager for a very large company.<\/p>\n I feel strongly it\u2019s important for all women to at least be involved with the financial decisions, even if they\u2019re not interested, and even if they think their spouse has a good handle on things. I\u2019ve heard too many horror stories from women who know nothing about the families financial situation \u2013 then their spouse passes away and they learn their fancy lifestyle was built on a house of debt and is now gone forever. Or their spouse deceives them or leaves them, and they\u2019re financially helpless.<\/p>\n Don\u2019t be financially helpless. Get involved in your money.<\/p>\n Kristine @ Frugasaurus<\/a> says:<\/strong><\/p>\n Yup. My partner and I have what we call “shared, but separate” finances. Which means we have one shared account from which we pay into, and from that, we pay all shared bills, rent and electricity.<\/p>\n Groceries, for instance, has been my partner’s responsibility lately because work has been busy. In that case, we do a quick scan of receipts at the end of the month and I transfer roughly half to his private account, so no one is left “worse off” for being the one to go to the shop or paying for that night out or whatever.\u00a0It is not as if we are very nitpicky about this and walk around with spreadsheets everywhere. I am the higher earner at the moment, so I will often chip in more, especially on large expenses.<\/p>\n I have always managed my own money, so to be honest, I can’t imagine not having some idea or control of what’s going on. On the other hand, this dual system keeps us both accountable and responsible. We hear so many stories about how one partner took control of all the finances, and the other partner had no idea that they had racked up tens of thousands in debt. This is not just a strain on family finances, but also on the relationship. By separating things, we know that at least half our savings will be safe, should one of us suddenly just go mad and hoard credit cards.<\/p>\n The latter is very unlikely at this point as we are so focused on our goal, but we figure, why even take the risk?<\/p>\n \u00a0<\/strong><\/p>\n Penny @ She Picks Up Pennies<\/a> says:<\/strong><\/p>\n I do! My husband and I have been married for almost five years, and I’ve always been more interested in our finances. I am the one who does a lot of the spreadsheet work, but we do have conversations every month where we decide what we want our money to look like.<\/p>\n Even if women aren’t all passionate about finances in the same way that female personal finance bloggers are, it is so important for every woman to understand her money. Money is a tool for us to leverage to get what we want out of life. To do that effectively, you have to keep an eye on numbers. Plus, no one cares more about your money than you!<\/p>\n \u00a0<\/strong><\/p>\n Ms. Financier @ Feminist Financier<\/a> says: <\/strong><\/p>\n I do manage my own money, and have been doing so since I started working as a teenager. While personal financial advisors<\/a> can provide a valuable service, I believe that every woman should have an active role in her finances.<\/p>\n A recent Fidelity study<\/a> found that 92{76b947d7ef5b3424fa3b69da76ad2c33c34408872c6cc7893e56cc055d3cd886} of women want to learn more about financial planning, but eight in 10 \u201c…confess they have refrained at some point from talking about their finances with those they are close to.\u201d Women report that talking about money is \u201ctoo personal.\u201d Ownership of our personal finances, and talking about money more frequently, will improve our collective confidence when it comes to money.<\/p>\n \u00a0<\/strong><\/p>\n Emilie @ Wise Mind Money<\/a> says:<\/strong><\/p>\n Yes, I manage my money, and I’m the money manager in my household between my partner and me. Money management is important to me because money is a tool for freedom and opportunity. It’s important for women to manage money, or at least to understand money and understand what is going on with their own finances because it’s empowering to have a sense of control over your money. It leads to a more active path to reaching your goals (whether they are financial or not – money is a factor in most goals and decisions) when you are able to see and direct your finances.<\/p>\n \u00a0<\/strong><\/p>\n My Take:<\/strong><\/p>\n As I mentioned in my recent post, the time for financial feminism<\/a> is here. The onus of financial independence and financial responsibility lies with us ladies, and us alone.<\/p>\n Melanie @ Dear Debt<\/a> says:<\/strong><\/p>\n 2. Knowing your bare-bones budget — what you need to live. How much money do you need to make each month to survive?<\/p>\n 3. How to open a bank account<\/p>\n Liz @ Chief Mom Officer<\/a> says:<\/strong><\/p>\n 2.\u00a0The power of compound interest<\/u><\/strong>. Teach yourself how compound interest works, and use that to inspire yourself to save early and often.<\/p>\n 3.\u00a0The importance of a good (financial) foundation.<\/u><\/strong> Before tackling investments, make sure you have a solid financial foundation. That means getting out of debt, saving an emergency fund, and having the right insurance lined up. You don\u2019t want to build your financial freedom on top of a crumbling foundation, or it will collapse at the slightest life event.<\/p>\n Kristine @ Frugasaurus<\/a> says:<\/strong><\/p>\n 2.\u00a0Realise that money is just maths, and treat it accordingly.<\/u> For many people, money is deeply emotional, and it is difficult to separate ourselves from it. By pulling out a good old spreadsheet or calculator, and sitting down to do the math on any given topic (be it getting a loan, paying down a loan, or buying something expensive) makes it so much easier to reach the right decision. Learn\u00a0 to do the maths for compound interest and percentages in general. If you always keep that in the back of your mind when spending or saving money, you\u2019re in for success.<\/p>\n 3.\u00a0Set up automatic saving every month.<\/u> And treat it like you would any other bill. Don’t allow yourself to cancel it or postpone it. This is your present self funding the financial peace of mind and resilience of your future self. Set it at a place you are comfortable with. Once you know you can manage it easily, you could try to increase it bit by bit. Just don’t you dare cancel it, you are more important than that.<\/p>\n \u00a0<\/strong><\/p>\n Penny @ She Picks Up Pennies<\/a> says:<\/strong><\/p>\n 2. How to make a basic budget<\/p>\n 3. How to pay bills (by check, online each month, automatic payments).<\/p>\n \u00a0<\/strong><\/p>\n Ms. Financier @ Feminist Financier<\/a> says: <\/strong><\/p>\n \u00a0<\/strong><\/p>\n Emilie @ Wise Mind Money<\/a> says:<\/strong><\/p>\n 2. How to manage your banking and bill pay online.<\/p>\n 3. What makes up your credit score<\/a>, and know what your credit score actually is.<\/p>\n \u00a0<\/strong><\/p>\n My Take:<\/strong><\/p>\n 2. Knowing that stock markets can be deciphered and are better in the long run<\/p>\n 3. It is never too early to start saving and investing for retirement<\/p>\n Melanie @ Dear Debt<\/a> says:<\/strong><\/p>\n 2. Put your savings on auto-pilot.<\/p>\n 3. Always ask for more — more money, more time, etc. We need to speak up for what we need!<\/p>\n Liz @ Chief Mom Officer<\/a> says:<\/strong><\/p>\n 1 \u2013 Spend less than you earn<\/u><\/strong>.<\/u> It\u2019s simple but effective.<\/p>\n 2 \u2013 Save early and often<\/u>.<\/strong> Don\u2019t waste time kicking yourself over not starting sooner, or thing it\u2019s \u201ctoo late\u201d. It\u2019s never too late, but the earlier you start the better. And don\u2019t worry if you feel like you can\u2019t save \u201cenough\u201d \u2013 save what you can and work on increasing it over time. Starting early with small amounts is better than starting later with large amounts.<\/p>\n 3 \u2013 Make it automatic<\/u><\/strong>.<\/u> The more you can automate good financial decisions, the less likely you are to make financial mistakes \u2013 and the more likely you are to be financially successful.<\/p>\n Kristine @ Frugasaurus<\/a> says:<\/strong><\/p>\n -1- Track your spending:<\/u><\/strong> I know it is repeated everywhere, but it is so, so important. I have a neat little app where I just write what goes in and out of my checking account. As a student, I had a tiny notebook that went with me everywhere. This way, I never have to wonder if I have enough to pay for something, I always know what is in my account, and I cannot lie to myself about what I actually spend money on.<\/p>\n -2- Money can either work for you or against you.<\/u><\/strong> Lending money is stealing from your future self, while saving does the exact opposite. If you cultivate a habit of saving a solid chunk of your paycheck when you get paid, you are investing in the happiness and security of your future self. If you are saving for 10 years or more, find some index funds with good reviews and invest in those. Ideally, try to automate it so that you don\u2019t even see the money. Some of the best investors are those who forgot they even invested anything!<\/p>\n -3– Get organized.<\/u><\/strong> It doesn’t have to be hard, and it doesn’t have to take a long time. I have friends who, in a very real way, are afraid of walking to their mailbox to check if there are more bills to pay. When that hurdle is overcome, they have another terror of actually opening up those bills to see what they owe.<\/p>\n \u00a0<\/strong><\/p>\n Penny @ She Picks Up Pennies<\/a> says:<\/strong><\/p>\n My mom<\/a>\u00a0modeled this for me growing up: save (and invest), meet your obligations (bills), THEN spend. Aside from those three habits, I would add that women also need to get more comfortable talking about money with other women. Knowledge is power, and it’s more powerful when it is shared.<\/p>\n \u00a0<\/strong><\/p>\n Ms. Financier @ Feminist Financier<\/a> says: <\/strong><\/p>\n \u00a0<\/strong><\/p>\n Emilie @ Wise Mind Money<\/a> says:<\/strong><\/p>\n 2. Have a plan.<\/strong><\/span> Direct your money based on what your goals are for your life. The plan can certainly change as your situations change, you just need to know what you’re doing with your money and how that relates to your “why.”<\/p>\n 3. Hold yourself accountable.<\/strong><\/span> Whether you see a financial coach or advisor, talk to your family or friends about your financial goals, or put some kind of system in place so that you will be accountable to yourself, when you’re held accountable you are much more likely to follow your plan and reach your goals.<\/p>\n \u00a0<\/strong><\/p>\n My Take:<\/strong><\/p>\n 2. Automate your investments.<\/strong><\/span> There is a reason that SIPs (monthly installment Mutual Funds) in India have grown at such a rapid pace.<\/p>\n 3. Invest time in financially educating yourself.<\/strong><\/span> Today with the available opportunities, there is no excuse for any of us to not be financially literate or aware.<\/p>\n So, there you have it from 6 enlightened ladies about why it\u2019s so important for women to manage money and some starter ideas for you to start taking your finances seriously.<\/p>\n Watch out for the next 2 posts, coming your way on Wednesday and Friday.<\/p>\n Take your first step today. Sign up for the Elementum Money Weekly Newsletter to download the Financial Feminist checklist. Also,get nuggets of financial wisdom with our 3 posts every week, directly to your inbox. Have more questions, feel free to send any of them my way at aparna@elementummoney.com<\/a>.<\/p>\n <\/p>\nDo you manage your money? Why is it so important to you and to all women?<\/strong><\/h3>\n
What are the 3 personal finance basics every woman must be familiar with?<\/strong><\/h3>\n
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What are 3 money habits that every woman should have or cultivate?<\/strong><\/h3>\n
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