Are you ready to change your money habits and take control of your finances? How would it feel to see money growing in your bank account each month? What opportunities would that give you and your family?
It all comes down to the daily habits you do each day. Having healthy financial habits can help you find financial freedom and peace of mind. Let’s explore the smart money habits of women who always have money and are never broke.
Table of Contents
1. They live below their means
Women who always have money live below their means. Even when they get a pay raise or an unexpected windfall of money, they always spend less than they earn.
It can be tough to live below your means when most people are living paycheck to paycheck today. Even if you can save just a small amount of money from each paycheck, this can be beneficial.
It’s not about how much you make because people at any income level can live below their means. This simply comes down to how you choose to manage your money.
To live below your means, you’ll need to know how much money is coming in and out of your bank account each month. You can do this by creating and budget to track your income and expenses.
Small costs like getting take-away coffee aren’t going to kill your budget, but big fixed costs can. This includes housing expenses, financing a car, or lifestyle upgrades like new phones and other gadgets.
Read Next: 100 frugal living tips to save more money
2. They know where their money is
Women who always have money know exactly where their money is. Even if they can afford to pay for a financial planner or advisor, they still keep an eye on their own budget.
This includes paying attention to how much money they’re earning, how much they’re spending, any fraudulent or suspicious activity on their financial accounts, and how their investments are doing.
Read Next: Where did my money go? 4 ways to track your expenses
3. They set financial goals
Women who always have money set SMART goals (specific, measurable, achievable, relevant, and time-bound goals).
Whether this is a small goal, such as saving for a fun date night, or a big goal like saving for a down payment on a house, they make a clear plan for how they will achieve their goals.
If you’re living paycheck to paycheck, saving money can be hard. But woman who always have money don’t loose sight of the big picture.
For example, if your goal is to save $1,000 for a starter emergency fund in 10 months, this means you’ll need to save $100 a month.
If you get paid once a month, you’ll set aside $100 per paycheck. If you get paid twice a month, you’ll set aside $50 per paycheck.
Breaking down your big goal into smaller, more manageable steps can help keep you motivated to stay on track.
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4. They have multiple streams of income
It can be risky to rely on one source of income in today’s economy. Women who always have money focus on building multiple streams of income.
This can include income earned from their full-time or part-time job, side hustle, investments, freelance work, or rental properties.
The first step to making extra money is to focus on building one income stream at a time. Think your hobbies and what you enjoy doing.
Many people have found success by monetizing their hobbies through a side hustle or freelance work.
You can also explore passive income opportunities such as building an investment portfolio.
Read Next: 21 passive income ideas for beginners
5. They have an emergency fund
Women who always have money know that unexpected expenses can happen. Having an emergency fund can protect your savings and ease financial stress when you encounter a surprise expense.
Getting into the habit of setting aside money each month can help when life throws an unexpected expense your way. Even if it’s just a small amount from each paycheck, every little bit adds up.
Most people start by working towards building a $1,000 emergency fund. Although, I recommend having at least three to six months’ worth of living expenses saved.
To figure out how much money you need to save, look through your past bank statements and credit card bills to determine your fixed and non-discretionary expenses. This includes things like rent, mortgage, insurance, debts, groceries, taxes, and so on.
Read Next: How to build an emergency fund
6. They automate their savings
Women who always have money make saving a priority. No matter how much money they earn, they always set aside a portion of their income to put towards their savings.
Ideally, you should aim to save 20% of your paycheck. If you’re living paycheck to paycheck, that may seem impossible right now. Instead, start small, even if it’s only $20 or $50 per paycheck.
The key is to get into the habit of setting aside money into your savings plan. I like using a high-yield savings account (investment savings account) to keep my short-term savings because you’ll earn interest.
Read Next: How stuffing cash envelopes can help you stick to your budget
7. They set aside spending money
Women who always have money know that while it’s important to earn and save money, it’s also okay to spend it on fun things.
This means they spend their money responsibly by setting aside a portion of the income to put towards their “fun budget”.
Fun money can be spent on anything you want, such as travel, manicures, pedicures, beauty treatments, hair salon visits, a new handbag, or impulse purchases.
Read Next: How to budget when you get paid biweekly
8. They are always learning about finance
Women who always have money know the power of education. They have a growth mindset, which means they believe they can improve their talents and knowledge to help them reach financial freedom.
They spend time reading books about money, following personal finance experts, listening to podcasts about money, and seeking professional help from financial advisors to improve their budget and finances.
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9. They practice mindful spending
Women who always have money are intentional about how they choose to save, spend, and invest their money. They have a clear understanding of their “needs” and “wants”.
To practice mindful spending, this means you don’t spend money based on your emotions. You think logically and do your research before making a big purchase. You align your purchases with your values and financial goals.
Mindful spending also means that you’re aware of spending categories that tend to bust your budget, such as restaurants or clothing. You make a conscious effort to adjust your budget accordingly and avoid impulse purchases.
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10. They have a budget and check it regularly
Women who always have money take control of their finances. They don’t set a budget and forget it. They understand that a budget is simply a tool that can help them reach their financial goals.
They know where their money goes every month because they regularly track their income and expenses. They make adjustments to their budget throughout the month as needed.
They pay attention to money leaks such as avoiding bank fees, paying off their credit card in full each month, paying bills on time, and canceling unused subscriptions or membership fees.
Read Next: What is the 70-20-10 budget?
11. They don’t carry a balance on their credit card
Women who always have money avoid high-interest debt and use their credit card responsibly. This means they pay off their balance in full each month.
Credit cards are not bad and they come with lots of benefits such as earning rewards, purchase protection, and maintaining a good credit score.
If you have debt, that’s okay. You can decide to make a plan to pay it off while still saving and working towards your financial goals.
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12. They think and talk about money, even when it’s uncomfortable
Women who always have money aren’t afraid to talk about money. Even if they feel uncomfortable, they know it’s important to discuss money with their partner, children, or parents.
Money can be a significant source of stress for many people and it’s one of the top reasons why people get divorced. It’s an emotional topic and many of us were never taught how to manage our money.
However, those who talk about money feel less anxious, less stress, and more in control of their finances. Talking about money with your partner can also help align your financial goals and foster better decision making together.
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13. They have an abundance mindset about money
Women who always have money believe that there is enough wealth, opportunities, and resources for everyone to thrive. On the other hand, someone with a scarcity mindset believes that there isn’t enough money to go around, which leads to feelings of fear and a constant sense of lack.
To cultivate an abundance mindset around money, it’s important to practice gratitude and focus on the positive aspects of your life.
Instead of viewing money as something that is scarce and must be hoarded, you can see it as a tool that can be used to help create more opportunities for you to earn and build wealth.
Having an abundance mindset also means you’re open to taking calculated risks to help you achieve your financial goals. Women with an abundance mindset see challenges as an opportunity for growth and learning.
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14. They prioritize saving and investing
Women who always have money set aside a portion of their income to put towards savings and investments before they spend it on other things.
If you have money leftover after paying your bills and necessary expenses, it can be tempting to spend it on whatever you want. But wealthy women know that it’s important to save and invest before using that leftover money on non essential things.
When you prioritize saving and investing, this means you’re consistently making progress towards your goals.
You can set up a direct deposit from your paycheck or checking account into your savings account, retirement account, or other investment accounts.
15. They negotiate and know their worth
Women who always have money have spent time developing their negotiation skills. They have learned how to negotiate higher salaries and benefits at work.
They have researched their market value to advocate for fair compensation, they understand their worth and what pay they deserve, and they prepare a strong justification for their desired salary when they negotiate terms at a new job.
They have also learned how to negotiate bills to reduce their household expenses. They have researched competitor prices, and they aren’t afraid to reach out to politely ask for a lower rate.
16. They practice gratitude
Women who always have money practice gratitude daily. This can help improve your well-being, reduce impulse spending and materialistic desires, and encourage better money management.
Practicing gratitude can also help you become more patient so you can focus on your goals and make better long-term financial decisions.
Some ways you can start practicing gratitude include writing in a gratitude journal each morning, keeping a journal of your financial wins, appreciating everything you have, feeling grateful for being able to afford to spend and save money, and giving back to those less fortunate through charity donations or acts of kindness.
17. They know what they truly value
Women who always have money keep their financial goals at the top of their mind before spending money. They know what they truly value in life and make room in their budget for this.
They cut costs in areas that don’t matter to them and prioritize things that are meaningful. This allows them to have enough money to enjoy themselves without feeling deprived.
For example, if going out for dinner at a restaurant on the weekend is important to you, then find ways to cook your meals at home during the week so you can save money.
Or maybe you decide to downgrade to a streaming service with ads because it’s cheaper so you can use that extra money to put towards your emergency fund.
Or maybe you cancel your expensive gym membership so you can stream free workouts at home or pay for a cheaper at-home fitness streaming service.
Or maybe you’re not a big fan of take-away coffee, so you can spend a few extra minutes making it at home to save money.
Or maybe you’ve learned how to give yourself a manicure and pedicure at home so you can use that money towards beauty treatments or skincare that is more important to you.
18. They pause before making a big purchase
Women who always have money don’t let their emotions drive their decision making. They implement a “cooling off” period by forcing themselves to wait at least 24 hours before making a big purchase.
For items that cost more than $100, I like to wait 30 or 60 days. This gives me time to reflect on if I can afford to buy the item, whether I truly need it right now, or if it’s just a fleeting desire.
During this “cooling off” period, it also gives me time to evaluate my budget, practice gratitude and appreciate what I already have, rationalize my feelings and ask myself why I want to buy that particular item, visualize my long-term goals, and remind myself the difference between wants and needs.
19. They have a plan for debt
Women who always have money understand that many people have student loans to pay back after graduating from school and that’s okay.
The key is to make a game plan for how you’ll pay off your debt. If you have high-interest debt, such as credit card debt, that is the first thing you should tackle.
Start by finding room in your budget to pay down more than the minimum payments. Living paycheck to paycheck can make it seem tough to find extra cash in your budget, but it’s not impossible.
Look for low-hanging fruit buy cutting back on unnecessary spending, such as eating out, nail salon visits, or switching to cheaper brands for makeup and food. Put that extra savings towards your credit card payment instead.
If you’ve already cut your budget down to the bone, look for ways to reduce your big expenses. This includes your rent, mortgage, car expenses, reducing insurance premiums, canceling subscriptions, negotiating bills, reducing electricity use, and waiting before upgrading your phone.
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20. They have a plan for their future
Women who always have money prioritize their physical and mental health and make a plan for their retirement. Women have a longer life expectancy than men, so it’s important to assume that you’ll live for a long time.
Think about your current lifestyle and how much you spend right now. Determine how those expenses will change once you retire. You may decide to travel more or pick up new hobbies. You may also decide to move to a smaller home or an area with a lower cost of living.
It’s never too early to start saving for retirement. The earlier you start means the less money you’ll need to save each month. Your money will also have more time to earn a larger amount of compound interest.
There are different registered plans that can help you save for retirement. It’s always best to seek advice from your financial institution to find the right plan or account to help you reach your retirement goals.
