In theory, freedom is the absence of enslavement or imprisonment. In a way, financial freedom aligns well with this definition, in the sense that it means being free of the chains that derail our economic progress. Money is not everything, yet it is a crucial part of life that ensures security and safety. Although it is next to impossible to map out a perfect future, having some sense of control over it is an exhilarating feeling. Earning doesn’t just mean the flexibility to buy whatever suits our fancy; it also means the ability to rely on ourselves and call our own shots.
Particularly for women, financial freedom is of tantamount importance. For a very long time, we have endured the disadvantages of a status quo that has been focused on clipping our wings. However, times are changing, and it is time to take that first step toward freedom and agency.
Tips To Achieve Financial Freedom As A Woman
Multiple Streams of Income
Do not rely on one job or one business model. You definitely need a side hustle or an investment opportunity. This will lower the risk and increase your financial potential. No matter how passive the income is, do it. Learn to invest in mutual funds and shares in the market. Invest in real estate for a safer investment. We live in a world that is crowded with opportunities. All you need to harness them is a good eye and a willingness to learn.
Invest
Once you start making the extra money, find ways to invest it so that the extra money becomes useful and effective. Be smart about investing. Let your assets pay for your liabilities. Simply putting all your money in a savings account is not going to fully help you reach your financial goals. Once you start making passive income, actively working becomes more optional.
Eliminate Debt
Although it is impossible to avoid paying your debt completely, credit is of great importance in some places. It plays a great part in securing loans for you. You can easily get rid of high-interest rates using the “avalanche method.” This pay-off strategy lets you minimize debt payments while at the same time letting you put an extra amount toward your debts with higher interest rates. You can move on to the debt with the lower interest rate after you have paid off the debt with the highest interest rate.
Track Expenses
It is prudent to be well-versed in your family’s finances and financial obligations. Thanks to e-statements and online banking, checking your bank statements has never been easier. It’s a good idea to check all of your bank accounts, credit cards, and e-wallets, at least once a month. With this, you will be able to better manage your finances and have a clearer picture of where your money is going. A good way to organize and track your expenses is to use apps for budgeting and tracking expenses.
Emergency Fund
Keep aside six months’ salary as an emergency fund. God forbid anything happens, you will have enough saved up for a rainy day. As the saying goes, it is always better to be safe than sorry.
Get Insured
In spite of an increase in awareness regarding health and life insurance, a good majority of us are still far behind when it comes to insurance coverage. Many women and their partners are unaware of the significance of purchasing insurance for women. The loss of income may have an impact on your family’s way of life if you are a working woman. Even if you are a stay-at-home mom, you still work more than 12 hours per day without any time off. You manage the household budget, tutor your children, and perform household chores. Even if these services are performed with love and go unnoticed, the absence of a homemaker can leave the family emotionally and financially empty.
Retirement Fund
Retirement savings is one of those things you should do but haven’t yet. Personal finance is often about making short-term sacrifices for long-term gains. By saving a little bit each year, you’ll be able to set yourself up for a dignified retirement. It is always wise to have an eye on your future. It is ideal to eliminate as much uncertainty as possible.
More financial responsibilities are being placed on women today than ever before. It is of the utmost importance for women to be aware of how to save, invest, and safeguard their financial future as they begin to play an increasingly significant role in all major life arenas. The true enabler of individual freedom will be mastering financial freedom.
