Being a responsible and strong woman means taking control of your finances and limiting mistakes, but it’s easier said than done. Mistakes are unavoidable, but when it comes to money, it’s best to avoid costly mistakes as much as possible.
Here are financial mistakes to look out for as well as the best ways to avoid them.
Spending money on the kids and not saving
If you’re a mother, or even an aunt, it will come naturally to always want to spend money on the kids by buying them gifts (sometimes unnecessary). It’s important to always put your savings first, and limit spending on spoils for the children or other family members.
We understand that times are tough, emotionally and mentally women often need to juggle a lot of responsibilities, but you don’t have to clear your cart or rush to your nearest mall every time life takes a knock at you. It’s great to spoil yourself now and then but try to not make it a habit. Although retail therapy may seem effective in the short-term, the long-term effects will probably add to your financial strain.
Not getting involved in managing the family’s finances
Many women (especially stay at home moms/wives) are involved in managing the family’s day-to-day finances, like paying bills, but fewer women are involved in the bigger financial picture. Here we are talking about savings, investments, insurance or even big financial commitments like home loan payments. Know where your family’s money is, how it is being spent, where the information about all the retirement plans is located, what other assets there are, and what they are worth.
Taking loans for partners
Women tend to be “natural givers” but sometimes to our own detriment. (Tinder swindler anyone?). We might know a story or two about a woman taking a small loan on behalf of their partner, or some ladies even go as far as taking out loans to pay for their own lobola. Unfortunately, these often do not end well. Remember, when taking out a loan on behalf of your partner, it is your financial reputation on the line, and not that of your partner.
Spending more than you earn
It’s easy to overspend on luxury items like clothing, vacations, and electronics. When your pay check does not cover the necessities, you may be forced to rely on high-interest debt options. Learning to live within your means is a fundamental financial literacy lesson and requires continued planning and discipline. Refrain from spending more than you earn.
To help you plan and stick to the discipline of running a budget, you can create and maintain your personal budget here.
If you have found yourself in one of these situations, remember that any time is a good time to make a good decision. It’s important to learn from your mistakes, educate yourself so you can make better financial decisions for your future.