Finances: Money Habits of Smart Women


money1Did you know that your personality has a lot to do with whether or not you’re on your way to financial wealth or whether you are dead broke and up to your eyeballs in debt, with no hope of digging yourself out? A National Center for Women and Retirement Research (NCWRR) study showed a direct correlation between a woman’s personality characteristics and her financial habits.

Decades ago, when women were expected to stay home and not have careers outside of their homes, it made sense that a lot of women did not educate themselves about money and finances. Now, in spite of women having made changes in their lifestyles, there still seem to be a lot of women who rely on their husbands or other people to manage their finances or to just take care of them. While there should be no judgement towards women who choose to be in traditional marriages and relationships, where the man takes charge of the finances, it is also important for those women to still educate themselves and be smart about money, in general.

The following are the ten habits of women who make great financial decisions:

If you aren’t where you should be financially, examine what drives you emotionally when it comes to money and try to figure out the psychological stumbling blocks that keep you from becoming financially independent.

Here are ten of the most important things women can do for themselves and their financial future:

1.  They set goals. Setting goals is very important for financial success.

2. They don’t  rely on someone else, like a husband or boyfriend, for their financial security. Smart women educate themselves about money management and investing.

3. They don’t use money to make themselves  feel good. That type of high only last a short time and then you end up right back where you were, or feeling even worse because you have spent too much money. Instead, do things that increase your self-respect and creativity so that you don’t try to fill that void with money and things.

4. They spend less than they earn. This seems so simple but it is the secret to creating wealth.

5. They are educated. People with college degrees make, on average, significantly more money than those who don’t have degrees. Even if you don’t get formal education, get in the habit of reading and learning about money management and other life skills.

6. They have an emergency fund. Without one, losing your job or some other major life event could force you to take on a lot of credit card debt or just devastate you financially.

7. They are involved in the day-to-day management of their family’s finances. Talk about money with your husband or partner.

8. They don’t take on their partner’s or spouse’s debt when they get marry. It may be wise to wait until you’re both out of debt before tying the knot.

9. They invest. Don’t let the fear of losing money, fear of failure, or fear of the unknown stop you from investing. Start small and then as your knowledge and comfort levels increase you can re-think the investment amounts.

10. They learn from their money mistakes. When you make mistakes, use the information to do better in the future, rather than repeating the same patterns.

At the end of the day, how well you do financially depends on your attitude and beliefs about money and how willing you are to take your financial future into your own hands.


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