Money is an essential factor in our lives. In today’s world, it has become a common practice for women to earn money and become financially independent through education and career.
However, when women get married, the decision is no longer the women’s sole responsibility, especially regarding the budget. Men will most likely decide on what to do with their money, where to invest or what to buy.
If they decide to have children, women will give up their careers in most situations as men continue working for the family. This means the women will have to depend on their husband’s income.
Some still try to earn by becoming freelancers or, perhaps, continue working if the company has a work-from-home setup. They can also start a small business at home, such as e-commerce.
In this article, we’ll focus on the advantages of financial freedom among women and different ways to protect it.
The Benefits Of Becoming Financially Independent On Women
Being financially independent has some advantages. Here are the benefits of financially independent women:
Higher Self-Respect
When women can support their own needs, they can boost their self-esteem. They wouldn’t need to depend on their partner’s income as they can manage to live independently.
It positively impacts their mental health, and they trust themselves more and more.
Better Living Standards
Whether a woman is single, married, or living with a partner, earning money can improve their living conditions. Imagine if two or more people are contributing to the family’s monthly expenses, it would be easy for them to buy or do the things they want, such as going on a vacation.
Higher Financial Security
In today’s world, anything can happen. Your partner might lose the capability to earn, or perhaps there is an emergency. You’d feel more secure with enough funds as there are always extra funds ready.
Less Prone To Discrimination
Unfortunately, women are still discriminated against almost anywhere. Men with traditional thinking believe they are superior to them. However, when they see financially independent women, they’d most likely give utmost respect to the person.
Role Model Of The Next Gen
Becoming financially independent isn’t a one-time process. Women should continue the change to motivate other women to achieve financial freedom. More and more women will become more financially literate in the future, changing the customs.
4 Ways To Protect And Maintain Women’s Financial Freedom
Once you’ve achieved financial freedom, there are some measures you need to take to keep your status. Here are the most effective ones:
Plan for Retirement
We all stop working someday. Because of our age, we won’t be able to do jobs efficiently, so it’s best to enjoy our remaining years. On the contrary, you’ll need funds to enjoy your senior years.
According to WHO, women live longer than men. This means you’ll be able to enjoy your life more.
Planning for your retirement at an early stage is a good thing; you won’t need to have issues living during your senior years. The best thing to do is to protect your retirement from a lawsuit; become more financially aware of the negative impacts and protect yourself by planning ahead of time.
One of the best ideas is to put your money on health investments. This will secure your welfare, especially during your senior years, as we become more prone to illnesses.
Evaluate Your Spending Habits
A common belief is that women tend to spend more than men. They buy bags, clothing, makeup kits, and a lot more.
Despite the stereotypes, men spend more than women. Men’s expenditure averages more than $40,000 a year, while women have about $39,000. This shows that women are better when it comes to financial management.
However, it is best always to evaluate your spending habits as some of our expenditures go to things we don’t need. Instead, track your daily, weekly, and monthly expenses. You may use templates from spreadsheets or simply have a notebook for your budgeting.
When you see that you’re paying for something you don’t need, you may want to consider giving it up or adjusting the budget depending on your income.
Save, Save, Save
Many financial advisors recommend saving 10% of your gross salary for retirement and other important savings. Other people tend to increase their savings percentage; some go more than 30%.
Establishing your emergency funds is also crucial. From the word “emergency”, you’ll only use it for urgent cases, and not on the things you want to buy.
The emergency funds should be enough to support your lifestyle for at least three to six months. This can help you in dire situations, such as sudden loss of income and healthcare.
Tap Into Investments
Aside from savings and your regular income, investments are great in helping your life overcome inflation. With rising prices worldwide, you’ll need security for your funds.
There are many ways you can invest your money. The most common for women is to put their money in the stock market. However, you may also want to consider bonds, mutual funds, precious metals, and real estate.
Generally, short-term investments give you an ROI after three years, while long-term ones take more than ten years.
When you decide to invest, put it in the amount you are willing to lose, so remember not to put all your savings into an investment. Instead, create a separate budget for this so you wouldn’t have any financial issues in case something goes wrong.
Be Financially Independent
You’ve probably seen many successful women in terms of wealth. One thing is for sure; they managed to do it by having freedom in finances. They’ve properly invested their funds, created a budget, and saved a portion of their income.
When you achieve financial freedom, make sure to continue the process, as this will help you in your future, especially when it’s your time to retire and enjoy life. Many women will look up to you, follow in your footsteps, and become financially independent from their partners’ income.