Most of us have enviable money habits and know how to keep our money or make it work for us. On the other side of the spectrum, are the few of us who don’t know the first thing about managing money and make one or two minor to major money mistakes.
Here are seven common money mistakes women make and how we can correct them.
1. Retail Therapy Spending
For some of us, emotional spending is most times the fitting solution when we feel emotionally down. You feel better instantly, but only for the short term. When you engage in retail therapy or emotional spending, you buy things you most likely will never need and end up with a huge feeling of guilt at our action afterwards.
Understand that emotional shopping only offers short term succor but brings a long term guilt and financial deficit. Resist the urge and channel all that energy to something more productive.
2. Letting Someone Else Make All the Financial decisions
It’s easy and convenient to leave all the financial decisions to your husband, afterall he has your best interest at heart and will make favourable decisions. However, things could go the way you least expect and most of the money could be gone before you know it; spent on a project you never expected.
Get financially educated and take an active part in the finance of your home. Even if your husband makes all the decisions, take a keen interest in what goes on and how it is carried out.
3. Sacrificing it All for the Kids
Many times we hear of women who resign from very lucrative jobs to take care of the kids. Soon they fall into a financial rut and become desperate for money.
While wanting to dedicate adequate time to your kids and their wellbeing is a great quality, it shouldn’t be done at the expense of your financial source.
Putting your kids first is a selfless and enviable trait, however, certain financial decisions should be done only after careful consideration and great planning.
It’s hard being a career woman and a super mom, but you can make it work. Most women employ the services of child minders to look after the kids while they at work. However, if this idea doesn’t sit well with you, you might want to look into establishing a business and waiting through the teething stage for it to become established before leaving your job.
4. Keeping Up with the Joneses
It’s quite easy to fall into the habit of comparing yourself with your neighbours ( what they have and the lifestyle they live) and trying to live up to this lifestyle. However, doing this is setting yourself up for future financial crises and heartache.
Understand that this habit is the fastest way to financial bankruptcy. Live within your means; a lifestyle you are comfortable with and can easily afford and you will be happier for it.
5. Thinking Negotiating is Cheap
Most people who work for their money and value it want the best deal for it. Failing to negotiate because you think it’s cheap will see you losing out on a lot of wonderful deals most of the time. Negotiating is also great as you’d also be saving money too.
Learn to negotiate on just about anything and save money in the process.
6. Not planning Long Term
Making financial decisions for the now is great, but it won’t secure your future. Things may be great one minute, but take a u-turn the next, placing you in a position where you are unable to work anymore.
You should plan early towards your future and retirement so you don’t start struggling to save up as it draws near.
7. Spending out of Guilt
Yet another money mistake women make is spending money out of guilt. Lending money to a boyfriend who is having a cash crunch or a friend with a bad debt habit is okay, if done occasionally. It becomes a problem when it becomes a habit, you are guilt-tripped into spending or if it affects your investment.
You should only lend money you can afford to let go if it doesn’t come back to you. Also, never give out cash if it will greatly affect your investment negatively. Saying no once is a while is not a bad habit. With time friends will come to understand they can’t just run to you to bail them out of a financial rut all the time and learn to sort their own problems.