How to Be a Rich Girl: 7 Financial Tips Every Woman Should Know

As a girl, your needs and wants are endless, insatiable, and unlimited. This gives rise to the need for you to be a rich woman; to be able to have all your needs and wants met without batting an eyelid; spend more money on luxury while having more money than you probably need stashed away to meet up with future emergencies.

But it all looks like a mirage in the face of the harsh economic reality where you have to work 9-5 and ending up with barely more than enough to meet up with your needs and wants, and a greater effort to commit money for emergency funds.

Not to lose hope or give up on your desire to live a dream luxury life, with these seven (7) tips on how to be a rich girl, you can turn around your life to be the rich woman you have always wanted to become.

How to Be a Rich Girl: 7 Financial Tips Every Woman Should Know

1. Educate Yourself on Financial Matters

To build wealth, you have to understand how finances work and know everything there is to know about money.

Getting financial education will equip you with knowledge and skill you need to manage and build your finances, which always have positive impact on your confidence, while making you financially independent.

Financial literacy starts with getting yourself familiar with basic financial concepts like saving, budgeting, income, expenditure, net worth, investment and investment tools such as stocks, mutual, cryptocurrency, and much more.

Making sound financial decision is your ticket to becoming a rich woman, but that can only be possible when you you’re financially well-educated.

To get financially educated, you should acquaint yourself with books that focus on finances, check out finance blogs, read financial columns in newspapers, and follow up on financial news.

Read Also: 6 Habits You Can Learn from Successful Savers

2. Create a Budget In Advance

Budgeting is not new to you but don’t make the mistake of budgeting only when you have your income at hand.

Always prepare a budget in advanced based on your observed needs and wants to prevent you from engaging in a spending spree out of excitement and fueled by your wants.

I have often heard young ladies say, ‘I don’t know how my money vanishes and I end up being broke in no time.’ My simple response has always been “plan your budget long before payday.”

I consider budgeting early enough a smart move to make because it ensures that you prioritize your needs over wants.

For example, in creating my budget (after automatic savings deduction of course!), I will consider my bills as top priority followed by other essential needs like rent, food, transport, and emergency fund before adding other needs such as personal care, and debt repayment.

I also will not make a mistake of not budgeting a small percentage (less than 5%) on leisure to re-energize and revitalize me.

By learning the act of budgeting ahead of your payday, you will be able to live life intentionally, be well prepared in advance for uncertainties, and also build a long-term financial independence.

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

3. Give More Attention to Your Needs

As I said earlier, needs and wants are endless and insatiable, but the key to becoming a rich girl is by understanding the difference between ‘needs’ and ‘wants’ and giving more priority to your needs than your wants in your budget.

‘Needs’ are what you need to acquire to survive and function daily such as food, clothing, housing, healthcare, education, and transportation; It also include essential bills like light and water.

Hence the reason you should make them top priority in your budgeting.

‘Wants’ which I would term as ‘cravings’ do not affect your survival and ability to function, rather are things that offer you comfort, pleasure, and status.

For example your penchant for designer clothes, shoes and bags, luxury gadgets, frequent family outings, dining out, or vacations.

Most often as a woman, you might tend to overspend on luxury rather than needs, but with budgeting, you will be able to balance both needs and wants by preventing overspending on your wants.

In summary, knowing the difference between your needs and wants gives you more control over your money.

Read Also: 7 Superb Financial Goals You Can Attain

4. Save First Before You Earn

Let’s face it; you can’t enjoy financial freedom if you do not cultivate the habit of consistently saving a percentage of your income (not less than 5%) before spending.

That’s the number rule to follow if you must become a rich woman.

Savings should be the easiest thing to do, but in reality it is the hardest.

Hence, I often advice that savings should be automated for consistency (consult your bank or financial institution for savings automation).

As a lady consistent with your savings, you will successfully build a robust emergency fund to help you handle unforeseen situations, and also give you the freedom to take sound financial decisions like starting a business, planning for retirement, or funding your child’s university education.

Read Also: 9 Practical Budgeting Tips for Easy Money Management

5. Grow Your Savings with Compound Interest

Your savings should grow by earning more money from compound interest, hence where and how you save your money matters most.

Savings account like IRA and 401(K) grow your money on the principle of compound interest.

For example, saving $200 per month in an account that attracts 10% interest annually can grow your money to over $150,000 in twenty years.

The key to maximizing your savings with compound interest is starting early and staying consistent.

Therefore, before you start saving, make sure you make proper finding on the type of saving account that guarantee you the most interest on your savings.

However, you have to let time and interest take control of growing your money by being disciplined enough to resist the urge to make early withdrawal.

Read Also: How to Set Financial Boundaries with Friends and Families

6. Take Advantage of Investment Tools like The Stock Market, Crypto currency, And Treasury Bills

Becoming a rich girl involves more brain than might… being financially educated will familiarize you with various investment tools for growing your wealth rapidly and the risk you stand to face with each investment tool.

Long-term stock investment have the potential for high-yield returns guaranteed by making due diligence on strong and reputable firms to invest in.

Government-backed investments like treasury bills on the other hand offer low risk but yields a modest return on investment compared with stock and cryptocurrency investments.

Cryptocurrency, the most volatile investment tool available offers you the promise of impressive returns that can blow your mind off, but I will advise that you approach it cautiously and strategically, seeking advice from proven financial experts before taking such financial decision.

7. Use Credit Facilities Wisely

Spending from credit cards gives you a false impression of being rich, but invariably sinks you deeper into debt and killing your dream of financial freedom if you misuse credit facilities.

I am not saying that you should avoid credit facilities like they are fleas, on the other hand, they are tools for building a good credit score only if used wisely to meet needs rather than on the spur-of-the-moment spending.

To avoid high-interest charges, and also build a good credit score which can come in handy in the future, you should always make regular payback as at when due.

If you must take up a loan offer, it should be for the purpose of starting a business or investing in a property, and never for spending on luxury.

Wise use of credit facilities can put you on the path of becoming a rich girl, but you should avoid multiple debts at once, keep an eye on your credit rating, and make sure you read the fine prints before signing any credit agreement.

If possible, you should always consult a financial expert before taking the decision to get a credit facility.

Read Also: 9 Easy Passive Income Ideas for Women

Final Thought

Becoming a rich girl is not only about building wealth and having more than enough money to spend on luxury at the moment; it is about you taking full charge of your finances by budgeting, giving priority to your needs, saving consistently, making the right investment decision, and using credit facilities wisely to build a strong financial foundation for yourself.

Finally, don’t just believe in yourself and in your ability to be rich, take small steps that can lead to massive financial breakthroughs for you and your future generation.

Read Also: 9 Financial Habits of Women Who Are Never Broke