5 Practical Money Tips for Modern Women

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Women are in a tough position in today’s world. More often than not, we make a lot less money than our male counterparts, yet we often pay more on things like beauty, personal hygiene, and self-care too. That means that girls need even more help making their cash work for them. 

As we head into a new year, now is the perfect time for women all around the world to re-think the way that they approach their financial strategies. Fortunately, the following practical tips will ensure that modern women can make the most out of their cash, without spending too many restless nights worrying about bills and expenses. 

Find Out What You Need to Survive

Step one in becoming more confident with your money is figuring out how much you actually need. This means creating something called a bare bones budget. Essentially, you go through your bank statements and figure out exactly how much cash you need to pay for all of your essential bills, like gas, electric, rent, and so on. 

You can apply a basic amount of cash for food and entertainment too – but nothing over-the-top. Imagine you weren’t earning an income and you had to use nothing but savings to survive – how much would you spend on food? Once you have your bare bones budget, you can begin to cut down on the things that you don’t really need in your life, like gym subscriptions you never use. 

Be More Adaptable

Women are usually pretty flexible creatures. We know how to pivot to suit the needs of an ever-changing environment. However, sometimes, we can have some trouble adjusting to a changing financial situation. When you’re making sure that you’ve got what to take to survive in today’s money-focused world, make sure that you’re as adaptable as possible.

Remember that the amount of cash that you need to spend this month might be different to the amount that you spend next month. If it helps, go through your entire year and plan the unique expenses that you need to be ready for, like birthday presents, or Christmas festivities. This will ensure that you’re not taken by surprise when new costs emerge. 

Invest In Yourself

There are times when the last thing you want to do is spend any more money. If you’ve gone through your entire clothing budget for this month, then you shouldn’t buy another pair of shoes just because they’re on sale, for instance. However, if an opportunity comes up that will benefit you in the long-term, then it may be worth the investment. 

For instance, if your job gives you an opportunity to take on some training for an upcoming promotion, but it means traveling out of town, it makes sense to take out a cash loan now, so you can reap the rewards in the long term. Whenever you need to decide whether you should spend money, ask yourself how it’s going to benefit you in the future. 

Be Honest With Yourself

Sometimes, when you sit down with your bank statements and look at what you have really been spending your money on, what you see can be a little shocking. We like to tell ourselves that it’s okay to spend a little extra cash here and there on things like a coffee on the way to work – because it will help us to be more productive. However, you could be cheating yourself out of cash this way. 

Instead, be honest with yourself, and recognize when you need to cut costs. Rather than ignoring expenses because they’re just a couple of dollars here and there, make a list of everything you spend each month, and what you realistically need to get rid of. 

Try Some Online Tools 

Finally, if you’re relatively new to managing your own money, and you don’t have a strategy that you feel comfortable using yet, then you can try using some online or digital tools. There are plenty of tools available online today that can help with things like tracking how much you spend or offering advice on how to reach your savings targets. You can even download applications straight to your smartphone that tell you whether you can afford to spend some extra money this month or not. 

The digital world can make tracking your money and your spending habits a lot easier, particularly if you don’t feel happy using just a basic spreadsheet, or a pad and piece of paper. 

What to Do When a Loved One Asks to Borrow Money

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One of the most difficult things is not being able to help out a loved one. Even though we want to help them, sometimes it just isn’t possible. Saying no becomes very difficult, especially if the matter is financial.

Helping a loved one financially is a tough situation, no matter what your answer is. It doesn’t matter if you are giving them the money or aren’t, things tend to get awkward. If you don’t give them the money, then they can get offended, the relationship can turn sour as a result.

If you do give them money, getting it back is another headache. They expect you to understand and can get lazy returning the money. Fights escalate when you do ask them to return the money.

Although you want to help them, you have to think about yourself first. If loaning them money is going to put yourself in a tough spot financially, then that is not a good situation to be in. You have to make a decision based on how it affects you. Yes, we want to save our loved ones from all the issues, but when we are all adults solving our own problems becomes a priority and everyone is responsible for their own life. 

No one is entitled to anything, no matter what their relation to you. If you don’t want to give them money, then you shouldn’t feel pressurized to do so. And if you do, then that is a clear red flag to not give them money, because chances are you will never see that money again.

Lending money to family often ends up breaking your budget, because it is an unexpected expense and chances are that the amount is big.

What to do when a monetary request does come your way from a loved one?

  • Figure out how much you can spare without going into a financial crunch yourself.
  • If it does not affect your budget, then go ahead with it.
  • Set a few ground rules though
    • Set a date at which they are supposed to return the money.
    • Make it clear that you will never help them again if the given money isn’t returned first.

Setting boundaries is really important to make it clear that you can’t be used as a financial crutch. You have your own commitments and responsibilities to take care of. If this person is always borrowing money, and never seems to change anything financially to not be in this position, then it might be time to let that person go.

While the main thing that we are frightened of is losing the person when it comes to financial matters, sometimes that is exactly what needs to happen for the peace of your mind and health of your wallet.

Final Thoughts

If you really want to help the person, then take your budget into account before lending them money. Set ground rules about repayment of the money, and if they are a serial borrower, then cut them off. Learn to say “no.” It is one of the most important things that you will need to learn to save yourself from people who are going to use your money as their own.