Financial freedom is the luxury we all wish to have. With financial freedom on your side, you can lead a comfortable lifestyle, afford anything and everything you desire, and travel the world without breaking your budget. This is what financial freedom entails.
Financial literacy for women is crucial regardless of your current status or background, whether you are single, married, changing careers, starting a family, getting divorced etc. Financial freedom is a form of personal empowerment that brings self-dependency. According to Carrie Schwab-Pomerantz,“Financial independence for women is a matter of necessity.” Nowadays, the modern woman is breaking stereotypes every day, most if not all women are now striving for financial independence!
So, What Does Financial Freedom Mean?
Financial freedom is the ability to support oneself financially without batting an eye and without assistance. According to Moneyfit.org, financial freedom means having enough savings, financial investments and cash on hand to afford the kind of life we desire for ourselves and our families. Nthabiseng Mthafeni, (Executive Financial Adviser Johannesburg Region) defines financial freedom as having the power over how and when you will spend and earn your money. To be free of financial constraints.
In short, financial freedom feels good and comes with lots of benefits.
Benefits of Having Financial Freedom
Below are some benefits of achieving financial freedom. Let’s dive right in!
- Health Improvement: financial freedom brings feelings of a stress free life. While money can’t buy you happiness, it gives you more control. Financial freedom gives you relief from anxiety tied to money.
- More Control over Your Time: having enough time to enjoy hobbies and pursue interests.
- Enhanced Self Esteem: Financial freedom can boost your confidence and self-esteem.
- Enjoy a greater sense of emotional peace.
- It allows you to have multiple options in life.
- It gives you the freedom to be generous
- It allows you to make decisions based on long-term goals, not immediate survival.
- You won’t need to depend on other people for help.
Tips to Achieve Financial Independence
“A woman’s best protection is the little money of her own,” these are the words of Clare Booth Luce. Women with financial sovereignty know how to take control of their money so they can live life on their own terms.
Let’s get started!!!
#1. Evaluate Your Spending Habits and Create a Budget
According to Ramsey solutions, ‘Budgeting is the first step to building wealth on purpose.’ Basic budgeting is important to get your finances on the right track. A good place to start is by listing out how much money is earned each month, then itemizing spending into categories to avoid overspending. Only spend money on things that are necessary or things that will enrich your life.
Review and revise your budget at least twice per year. Financial alertness and money management skills can provide women a deeper sense of security that makes it easier to save and invest for the future. Without a financial plan or proper budget you’ll find yourself wondering where your money went at the end of every month! Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden.
#2. Get into the habit of Investing
The best way to grow your wealth is through Investing. According to Brian Tracy, Financial security and independence are like a three-legged stool resting on savings, insurance, and investments. The expertise of a financial advisor is needed at this stage to help you navigate your long-term investment options. The earlier you start investing, the more time your money has to grow. The corollary to that is the sooner you start, the less you’ll need to save to reach your financial goals.
#3. Be Debt free
Every time you borrow money, you’re robbing your future self.” – Nathan W. Morris. Debts can eat away your salary and fudge your budget. That’s why it’s vital to get rid of all debts no matter how small. The reason being as long as you’re spending a part of your salary in debt payments to banks and lenders each month, you can never truly experience financial freedom. And you won’t reach your money goals if all you’ve got to work with are bits and pieces left over after pay your debts. Your income is the most powerful wealth-building tool and there’s nothing like the feeling of actually keeping the money you bring in every month to yourself! A debt-free life with significant savings and investment can bring you joy.
#4. Bulk up your emergency fund
Emergency funds play a significant role in financial independence for women, especially those who have families. One bad day or emergency could put everything you worked so hard for at risk if you’re unprepared. Unforeseen expenses can derail your financial freedom objective however, A fully funded emergency fund helps save the day in more ways than one.
Nearly anything can constitute an emergency for instance a health scare, job loss, family emergency, car repairs, broken appliances etc. That’s why Most financial experts emphasize the need to keep an emergency fund to cover 3–6 months of expenses once you’re out of debt. This means you do not have to worry about unexpected expenses. Having the cash on hand to cover an unexpected life event gives you peace of mind
#5. Set Financial Goals
Having meaningful goals can set you on a path to a debt-free life, and guide your journey to financial freedom. You need to set some financial goals If you want to take control of your money and create a more financially secure life. Set goals for your savings account, and don’t touch it otherwise.Here’s how to set goals that actually work: make your goals measurable, Give yourself a deadline and Put your goals in writing. When you’ve set your financial goals, you have a high-level view of where you’re going. Financial goals improve your money mindset and chances of success. With proper financial goals set one can focus on their priorities.
To sum up, It is of paramount importance that women understand why they need to learn the basics of financial planning and get started, there’s no change without action! Empower yourself by taking charge of your fiscal wellness with early planning!
