The Path to Better Financial Health
Women are taught to look after their bodies, minds, relationships and education, but there is still a stigma around focusing on their money! Financial health is something many women have never been taught to prioritize, and this holds them back from reaching their true potential. Ironically, the more we ignore our finances, the more our lives become centered around them. It can become a source of anxiety that hovers over your life like a dark cloud and limits your choices. Achieving true financial health is not necessarily about "getting rich", but rather about giving you the freedom to make the choices that are best for you, and to have the flexibility to focus on the things that truly matter. It's time for women to step into their power to take control over their financial situation.
Money Mindset
If you want to change your finances, you need to change your mindset. We're all starting from unique circumstances, and it's important to understand not only your current situation, but also how you arrived there. These beliefs can completely sabotage your relationship with money and long-term financial health. Once you understand the origin of these thought patterns, you’ll begin to have more control over them in the future. And eventually you’ll start to intentionally replace them with healthier ones.
Examples of healthier mindset shifts vs limiting beliefs:
Money is simply a tool which can be used for good or evil vs. Money is evil
Focusing on attaining wealth will give me the ability to help myself and others I love vs. It's selfish to focus on attaining wealth
My family's finances do not determine my own vs. My family has never had financial success, so I never will
I deserve to have financial success vs. I don't deserve to have money
I have the ability to achieve financial success vs. I don't have what it takes to be financially free
Addressing Your Debt
Debt can sometimes feel like a scary hole that's impossible to climb out of, but I'm here to tell you that it IS possible! But not all debt is created equal, and it's sometimes necessary to take on debt to acquire financial freedom. Business loans and student loans for example can potentially be a very wise decision to take on if they have a "positive return on investment". The type of debt that you want to avoid and pay off as soon as possible is the kind that involves borrowing with a "negative return of investment": essentially, borrowing money that doesn't improve your earning potential. This can happen in a number of different ways, but the most common example is credit card debt.
The high interest rates on credit card debt means you end up paying an incredible amount of money to credit card companies with no benefit to you at all. A great option to deal with credit card debt is to consolidate all of your debts onto a single line of credit through your bank, and make regular payments. Lines of credit have lower interest rates, and it will be easier to focus on paying off a single source of debt rather than multiple cards.
Budgeting
Ah, that dreaded “B-word” again! It may not be the sexiest topic, but it’s definitely the most important. Many people fall into debt simply because they don't know how to budget properly and inadvertently live outside of their means. Budgeting doesn't have to be viewed from a punishing perspective and instead should be looked at as examining your priorities and ensuring the important things are taken care of.
It's worth setting aside some time to write out what your total monthly income is, your recurrent expenses, and your spending habits. This is your chance to figure out what your non-negotiables are, and what has crept into your budget without you realizing. You'll be surprised at how easy it is to replace unconscious excessive spending habits into more cost-effective and intentional ones.
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