Last Updated on January 15, 2021 by NandiNN
Women and Finances
I have gotten a lot of bad advice about money in the past and that’s why I wanted to share 6 budgeting tips for women to think about as you go about your day to day business.
I encourage all women to have a solid plan when it comes to finances.
The other day I was in a Facebook group and the ladies were discussing our stand on infidelity.
A question was asked about what one would do if their partner cheated.
And I clearly remember a lady saying her husband cheated so many times to the point of catching an STD.
But she wasn’t able to leave due to finances as she is a stay at home mom to her 11-year old daughter.
This broke me.
Becoming financially independent is really important and I am not saying having a separate account from your husband but knowing how to manage funds so if you were ever in a tricky situation, you could get out.
There are so many reasons I encourage financial planning for women.
Here are just a few:
- So you can have money for retirement
- You can invest to grow your money
- If you have kids, save for the future
- Emergencies do happen, be prepared
- Not relying on others for money
At the end of the day, don’t let money or your finances control you, be in a position to control the money.
With that in mind, what are the best budgeting tips for women?
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Financial planning for women
What do we mean when we say financial planning?
In our case, we want you to consider these things when it comes to your finances:
- Effectively budgeting
- Cash flow management
- Your savings and emergency funds
- Your retirement plan
- Investments opportunities
We are going to break down everything you need to know about this as well as discuss some of the best budgeting tips for women so that you can be better informed to make your own financial decisions.
You need to read this if you want to understand more about the benefit of budgeting your money each month.
Before we get started on the best budgeting tips for women, we did want you to follow us on Facebook for more awesome ideas on saving or making more money. You can also follow us on Instagram for more tips.
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6 Budgeting Tips for Women
The budgeting tips are perfect for women that either really do not like budgeting, or are not sure where to beginning.
Budgeting may seem like it takes too much time or that you need to be good at math, but once you get a hang of it, it will do a lot for you.
Even if it looks like you have your finances in order, we urge you to still budget and manage your money accordingly.
A really good budget can help keep your spending on track and even uncover hidden cash flow problems that you might not have known that you had.
Can you imagine finding out that you actually have more money to spare towards your financial goals?
I hope these simple budgeting tips for women will encourage you to organize your finances today.
1. Organize your Finances
The first step you need to know about budgeting and creating a financial plan is to organize your finances.
You can’t create a budget without first knowing what exactly you make, and what needs to be paid out each month.
The only way you will have a proper idea of getting this correct is by printing out the last 3 to 6 months of your financial statements and recording everything.
This will also tell you how much you make after all deductions have been made.
Don’t create a budget by recording the wrong numbers.
Read this to learn more about how to properly organize your finances.
2. Calculate your Income
Now that you have all your records and you have organized your finances, you need to calculate your income.
We consider income anything that goes into your bank account regularly.
Your family sending you money is not income.
You want to start with how much money you make from working after taxes each month.
If this changes on a regular basis, go with your average take-home number.
And if you have other sources of income, be sure to add this.
Examples include and not limited to:
- Child support
- Child benefit (although this should go to the child)
- Interest from investments
- Rental Income
- Part-time / side jobs
This will give you a better understanding of how much you are making overall and where you should really be distributing that money.
3. How Much Do You Spend Monthly?
This stage can be a real shocker for most people.
When I calculated exactly how much I was spending, it was a lot more than what I THOUGHT I WAS SPENDING.
The reality was I was spending money on irrelevant things.
For example, my coffee habits cost me just less than $3000 each year!
This is a lot of money I could have used to pay off my car soon.
Break your spending up into little categories so things don’t look overwhelming.
- Food (don’t include restaurants – those are extras)
- Car + Gas (Or transportation)
Then you have the extras
- Dining out
You can grab our FREE budget template here.
Alternatively, we have a FREE spending plan that you can use as well to better record your overall spending.
Finding out why I prefer tracking my expenses on a spending plan!
4. Balance Your Income and Expenses
It’s to total your income and expenses so you can balance things out.
So go to step 2 and total up your monthly income.
Let’s say that is $3000.00 take home (this does include any deductions such as tax or employment insurance).
Then total up all your spending or expenses that you have each month.
Let’s say that comes up to $2650.00.
From here you want to subtract your expenses from your income.
So $3000 – $2650 which leaves you with $350!
If you have money left, great.
You can use this extra money to pay off debt especially debt that has a high interest or you can put the money into a savings account.
What if your account doesn’t balance out?
Meaning you are spending much more than you are making.
Then you will need to go back to your budget and work on it so that it balances out.
Take a look at your spending and find things you can reduce or eliminate to make your budget balance out.
If your expenses or spending is more than what you actually make, consider reducing, eliminating or reorganizing your finances so that it makes better sense financially.
A few things you can eliminate from your expenses:
- Coffee habits
- Eating out
- Reduce grocery spending
If you need help, I would suggest reading this post: Re-imagine your Budget: Reorganize, Reduce and Eliminate!
And if you really can not cut off anything because you are just tight on cash each and every single month, consider making more money.
Here are a few ways you can increase your income every month!
I know a lot of people that are in desperate need of money each month and honestly, getting a part-time job or freelancing is the best way to get by even if it’s for a short time.
5. Paying Yourself Monthly
It’s important that you find the money to pay yourself each month out of your budget.
And this money should go into a savings account or it can go to pay off high-interest debt.
But let’s talk about savings first.
Would you be financially okay if you had to lose your job tomorrow?
How would you pay for rent, mortgages or other important bills if you suddenly lost your job?
If you have kids you need to save for the future and if an emergency happens, you need to be financially prepared as well.
I know some people suggest that you pay yourself first before paying anything else.
I am not sure what your financial situation is, so do what’s best or consult with a specialist at a bank or a financial advisor.
A good way to start saving money each month is to set a savings goal of accumulating $1,000 in your savings account!
And from here, you can proceed to build that into a 3-month emergency fund.
You can start by saying that you start saving 5% or 10% of your income each month.
And once all your debt is paid off, you can increase this percentage.
You can also grab my money-saving challenges today to help you start saving money right away.
One of the best budgeting tips for women I ever got was to save!
We have flexible challenges that you can easily use to help you save some serious money in 30 days or over the year (52 weeks).
Whether you are looking to save $100 or $10, 000, we have money-saving templates you can use to reach your goals faster and easier!
Grab it now!
They are over 8 amazing challenges:
- Save $100
- Save $500
- Save $1000
- Save $3000
- Save $5000
- Save $10000
- Save $15000
- Save $20000
Grab the full bundle right here!
6. Get Rid Of That Debt
Let me confess – It is technically highly recommended that you pay off debt FIRST before you save or invest any of your money.
Yep, I said it.
When I save, I typically put my savings in a high-interest tax-free savings account.
This way I can also invest.
However, if I am also paying off debt, I will have very little money to invest each month.
The interest rates that you pay on your debt is usually much higher than the interest rates you can potentially earn from a high-interest savings account.
So why not just get rid of that debt and use the extra money you now have to invest big?
Go ahead and pay off your debt and use the extra money to save and grow your money.
You can also grab this tool – pay off debt planner I regularly use and recommend to keep you on track when paying off debt fast!
I hope you enjoyed our awesome list of budgeting tips for women!
Don’t forget and sign up right here for the full details.
Now that you have a great idea of how to make a budget work for you, try to stick to it.
It will take a money-mindset shift to really get used to budgeting and staying financially safe for things to work.
Need more budgeting tips for women? Read this next:
- The Best Budget Planners For Beginners to Help You Budget
- Personal Finance Tips That Will Change Your Life And Make You More Money
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