01 Jul Areas of Personal Finance African Women Need to Master
We all know the important role that women play in societies, right? However, when you speak about the women of Africa, it’s a sad fact that that they are generally not as empowered as the women of the rest of the world. Bearing that in mind, here are a few areas of finance that African women need to master:
The Money Mindset Check
When you speak of a majority of Africa, it is nothing short of a fact that women are more dependent than any other part of the world. Having that been said, it is imperative for the women in that part of the world to understand the importance of financial independence. With financial independence, not only will the African women be liberated from the feeling of helplessness but be able to contribute to the development of their communities as well. We all know how strong mothers nurture strong children, right? Not only is the financial awareness of women in their own interest, but it is in the interest of their communities and nations as well.
Show Bad Money Habits the Door like a Pro
Impulse purchasing, over-reliance on credit cards and the love for convenient shopping are some of the bad money habits that are found in women all over the world. The common trait of these habits is that they don’t allow you to experience the full gifts of your hard earned money. What this means is that you need to focus on meeting your needs rather than wants.
When you have successfully gotten a hold of your bad money habits, you are on course for the development of good money habits. The development of good money habits starts from restraining your desires for the higher purpose of fulfilling your needs and obligations. For instance, if you are worried about your mounting bills, then there is no need for you to spend money on that luxury bed, or is there? When it comes to the development of good money habits, it is imperative for you to make saving goals and then stick to them regardless of what happens. By controlling your desires and pursuing the monetary goals that you have set, the good money habits will be inculcated in no time at all.
Make the Cash Last – Ball on a Budget
One of the worst bad money habits that you can have is not to have a budget. A budget allows you to see how much money is coming in and how much is going out. What this means is that with a budget, you will be able to not only make informed expenditures but also be able to accumulate some savings. If you think about, budgets are one of the primary requirements for getting ahead on your monetary goals. With an estimate of your earnings, you can make expenditures accordingly.
When it comes to making a simplistic budget as a woman, you will obviously need an estimate of the cash inflows for the period. With the inflows accounted for, you will need to estimate the expenses on needs (which are absolutely). The remaining money (if any) can be spent on the pursuit of wants and desires. However, the importance of savings cannot be stressed upon enough.
Little Drops of Coins Heap the Cash Up
Saving refers to the setting aside of a fraction of income to be used in the future. With savings, people have got the ability of rising from poverty, over the course of time, to make their lives amount to a little more than day to day struggle. With the development of savings culture in a woman, an entire household can be lifted out of poverty. Or, if the culture could be extrapolated to an entire African nation, then an entire country can be brought out of poverty. When you speak of saving, however, it has to be remembered that they don’t bear dividends overnight. On average, money needs to be saved for several years before the savings can work their magic.
When it comes to becoming a good money saver, women need to start as soon as possible. There’s no need for you to set extravagant saving goals, for you can save as much as you like. It would be better if you have some target of savings to work towards, considering how it will motivate you to cut down on unnecessary expenses as much as possible. From education to house to car—you need to setup a separate goal for each of your goals. On top of that, a smart woman is one who remembers to save for an emergency fund as well. Who knows when an emergency might arise!
Through the mastering of these areas of personal finance, the women of Africa cannot only help themselves but help their regions as well!