Women and men make the same money mistakes, but there are some mistakes that are more exposed to a particular type of person. Just like any other person, women should not fall into traps that make them lose money or spend money on things they don’t need.
Here is a list of things you must avoid if you want to be a financially savvy woman.
Abusing the credit card
The credit card is called as such for a reason. It takes credit, meaning you are not getting it for free. In fact, you are paying for more just so you can buy it now.
It’s not bad to own a credit card. It’s very useful and it will help you purchase things that are too expensive to pay one-time-big-time. However, using a credit card comes with great responsibility. Make sure that you don’t swipe and feel that you got something for free. You will have to pay with cash when your bill comes and you have to make sure that you pay everything on time so that you won’t get a bad credit score.
Giving into peer pressure
With social media’s role in our everyday lives, it is so easy to see how our friends are doing.
Oh, she went on a beach trip? Again?
Another new phone?
Wow, they sure love eating at buffets!
Do not allow social media to pressure you into buying things you don’t need. You can purchase things you want but make sure that before doing so, you have already covered your basic necessities, your bills, your savings and emergency funds, your retirement, and your investments. Only have a “fun fund” once all of these are checked.
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Retail Therapy
Retail therapy is a myth. You do not have to buy things you do not need just to influence your mood. It is both common and unwise.
According to a study done at the University of Hertfordshire, 79% of women shop to “cheer themselves up.” Here’s the deal: You can also cheer yourself up without having to break your wallet. Emotional shopping is a bad habit that must be avoided.
At the same time, stores and businesses fool women into spending and buying their products. They will make you feel ugly and bad and then they will provide the solution.
Before purchasing anything, make sure you ask yourself first:
Do I need it? If yes, buy it.
Do I want it? If yes: Can it be sold for at least half the price when I don’t want it anymore? If yes, buy it.
Will it make me more money? If yes, buy it.
Will it make me feel better? If yes: Can something else make me feel better? If yes: Is the alternative for free? If yes, don’t buy it.
Remember: There is no need for you to impress people online. You only need to impress your past self.
Thinking money is a taboo topic
Money is not evil. Whoever said this clearly is an evil person. Money only becomes the root of evil if the person handling it uses it for bad things, much like how a knife can be a tool for murder or a tool for a great dinner.
Do not make the mistake of thinking that money should not be talked about because it’s disrespectful. It is more disrespectful to not be transparent about issues that must be tackled, especially if you’re in a relationship or if you’re part of a family.
The cause of many relationship blunders is the lack of transparency when it comes to money. You must know what your partner’s habits are and he must be aware of yours too. In this way, you can talk about ways in order to achieve your financial goals together.
You must also be open about your money issues so that you won’t have to go through peer pressure. Can’t afford the trip your friends want to go to? Then tell them. Want to save money for your retirement than use it for grand gifts for Christmas? Then be open about it. You don’t have to lie to yourself, to your goals, and to your future.
These are just some of the financial mistakes that women must avoid. They are very common and they are also disastrous to your financial health. However, do not worry. As long as you commit to fixing your finances and avoid these things, all will be well.
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