9 Financial Habits of Women Who Are Never Broke

If you live from paycheck to paycheck, then you’re a broke lady. Being broke is not a sin, but staying broke as a lady is.

Women who are rich aren’t rich by luck or by winning the lottery; rather, they made smart, intentional choices with their money.

You too can be a rich woman by learning from the financial habits of women who have achieved financial freedom and stability.

Here Are Nine Financial Habits Of Women Who Are Never Broke:

1. They Are Financially Disciplined: They Live Below Their Means

Rather than spending lavishly, women who are rich keep a low profile by living below their means — i.e., they spend less than they earn despite having a high income level.

Rather than following social trends and making all efforts to appear rich while you’re not, you should focus on saving and investing a large portion of your earnings by being intentional with your purchases.

To build wealth for yourself, you need to learn the habit of financial discipline: instead of a new car, a used car in good shape and condition will do; prefer to cook your meals at home rather than ordering frequent take-outs.

Have a clear focus on building long-term wealth and stability.

2. They Budget Consistently

Women who are never broke are always consistent with budgeting; they never spend outside of their budget, hence it is easy for them to track every dollar spent.

You should imbibe the habit of budgeting consistently for your monthly needs by creating a realistic budget using a notebook, spreadsheet, or budget apps that can help you track your income, expenses, and savings.

Also, you can review your budget periodically to make room for changes.

Taking up the budgeting habit will help you to avoid overspending, prepare for expenses way ahead, and keep you in control of your finances.

Read Also: 9 Easy Passive Income Ideas for Women

3. They Have Emergency Funds to Fall Back On

Women who enjoy financial freedom don’t have their feathers ruffled when faced with emergency situations like sudden job loss, medical bills, car repairs, or other disasters because they have it under control.

When faced with an emergency situation, they make withdrawals from their emergency funds to solve the emergency without falling back on credit cards or high interest loans.

To cultivate this habit, aim at saving at least six months of your living expenses as an emergency fund. Also, open a high-yield savings account that is easily accessible for your emergency funds and automate your savings to ensure consistency.

Over time, you wouldn’t need to fall back on credit cards or loans when you’re faced with an emergency situation, but you will enjoy peace of mind knowing that your emergency fund has got you covered.

Read Also: 10 Financial Habits That Will Make You Wealthy

4. They Avoid Bad Debts

Debt in itself is not bad, but knowing what type of debt to get into is what makes the difference between a rich and a broke lady.

Women who are rich avoid piling up debts on high-interest credit cards.

Even when they spend from their credit card for whatever reason, they pay off their debt before it starts accumulates into a gargantuan debt.

Also, they have knowledge about the differences between productive debts like mortgage, student loans, and business loans; and destructive debts like credit card debt, auto title loans, payday loans, high-interest personal loans, and buy now, pay later schemes.

Hence, they thread carefully, understanding the terms and condition backing up credit types before making their decision.

Learn from this habit of avoiding unnecessary debts; plan, save, and spend with intention.

Read Also: 6 Habits You Can Learn from Successful Savers

5. They Prioritize Investment

Financially-smart women understand that savings alone won’t make them rich. Hence, they are focused on building long-term wealth by building a diversified investment portfolio.

You too can make a smart decision of not just saving, but investing consistently. You can start by investing small but consistently through retirement accounts like a 401(k) or IRA, stocks, index funds, or real estate.

These investment vehicles build wealth faster over time compared with a savings account.
If 20% of your income goes into savings, you can split it into two equal parts: 10% for savings and 10% for investment.

Additionally, income realized from other sources or extra money realized from trimming down your budget should also go into your investment account.

6. They Educate Themselves Financially

Women who build lasting wealth don’t leave their financial future to chance – they make a conscious effort to understand money by engaging with finance books, blogs, podcasts, newspapers, and magazines, as well as consulting finance experts to gain an understanding of how finances work.

To have control over your finance and attain financial stability, you should start by learning the essentials of finance such as distinguishing between needs and wants, budgeting, saving, spending, investment tools, and various financial concepts.

Read Also: How to Set Financial Boundaries in a Romantic Relationship

7. They Are Intentional About Their Spending

Women who are intentional about how they spend their money are never broke because they make mindful decisions on what to spend their money on rather than be controlled by impulse, trends, emotions, and social pressures.

When next you’re tempted to make an impulse purchase, pause and ask yourself if your purchase is in line with your budget or not; understand the difference between needs and wants and prioritize your spending based on what can give you lasting value rather than a fleeting moment of satisfaction.

If you’re spending on ‘wants,’ do so within the limits of your budget; by all means possible, let your spending reflect self-control, clarity, and purpose.

8. They Are Consistent With Monitoring Their Finances

Financially smart women keep a close, keen watch over their finances with the help of finance tools like budgeting apps, spreadsheets, or notebooks to consistently track income, savings, debts, and expenses to help them identify and block leakages in their budget that can slow down their progress toward their financial goals.

You can take control of your finances by giving a close and consistent watch over your money and monitoring the progress you have made so far in achieving your goal of building an emergency fund, paying off debts, or building your investment portfolio.

9. They Set Clear Financial Goals

Women who are never broke are financially intelligent enough to know that financial decisions taken today have a great impact on their future.

Hence, they set clear financial goals that can help them achieve financial freedom in the future. You too, can set clear financial goals for yourself by defining what you want and how to achieve it.

Whether you dream of living a debt-free life, owning your own home, building wealth, funding your children’s university education, or retiring early, set your goals and let your goals be your motivator and financial compass guiding you on how to save, spend, and invest your money.

Conclusion

Now you’ve been let in on the secret: women who are never broke never rely on luck, high pay, or even inheritances to be rich.

Rather, they rely on financial habits that help them make intentional financial choices like planning, saving, investing, and monitoring their money, which all align with their future goals.

Regardless of your income level or background, you can adopt these financial principles one habit at a time.

Over time, these habits you have imbibed will bring you financial freedom and peace of mind—ensuring that you’re never broke and caught financially unawares again.

Read Also: How to Save For Different Financial Goals & Benefits of Planning Your Finances