#InspireMondays: 6 Traits of a Smart Money Woman

One of the resolutions I made this year, was to become a better manager of my personal finances. No more earning and not having anything to show for it. I’m ready to build and secure my financial future and make the sacrifices today to ensure that happens. So when Arese Ugwu of Smart Money Africa advertised the Smart Money Woman Workshop, you know I registered in a quick hurry.

Now, If you weren’t there, I am going to be brutally honest….YOU MISSED! Like REALLLLLY MISSED. I am sure Arese will have many more of these workshops in the future so make sure you attend. I went through my notes from the workshop and I realised that becoming a smart money woman was about having a mindset and lifestyle shift. It isn’t about being purposeful and intentional about what I want my money to do for me. So I have come up with 6 lifestyle habits of a smart money woman….

1. A Smart Money Woman has a wealth mindset:  She understands the difference between a broke and wealthy mindset. She knows that ‘broke’ doesn’t mean not having money, it means continuously spending your earnings on non assets. A smart money woman, understands the importance of investing in assets that will give her enough money to live the life she wants. So she invests before spending, spends less than she earns and sets aside a proportion of her income towards the purchase of assets.
2. A Smart Money Woman sets financial goals: a smart money woman thinks about multiple ways of earning an income. She knows that fast money doesn’t hardly exist legally and creates financial goals which ultimately allow her passive income to support her lifestyle needs (and also her basic needs). Her financial goals also reflect her values and life goals.  Every year a smart money woman aims to increase her networth and works judiciously towards it
3. A Smart Money Woman has a spending plan: she takes responsibility for her money and spends intentionally. She has an emergency fund (usually 6-9months of her salary) saved because she knows that letting circumstances and situations drag her finances at every turn will never give her the opportunity to create wealth. So she divides her income into 3 parts- 70% on living expenses, 10% on short term goals and 20% on long term financial goals.
4. A Smart Money Woman thinks long term: She knows that long term investing creates a secure future, so she saves to invest not to spend. She doesn’t think creating wealth happens overnight, rather she knows it is a process that requires conscious effort, intentional purposeful spending, saving and investing as well as clearly articulating her money goals.
5. A Smart Money Woman is informed: because a smart money woman invests long term, she knows she must understand the economy in which she lives and the best way to invest her money. She builds her financial knowledge and doesn’t just rely on her relationship manger. She asks questions and makes it a habit to know what is happening in the economy. That way she knows what investment strategy best works for her
6. A Smart Money Woman is about her business: a smart money woman who is a girl boss, knows her numbers. She keeps all her financial records and knows exactly how much it takes to run her business. She understands the time value of money and the opportunity cost of the capital used in her business. For the smart money career woman she knows exactly how much it costs to live her life and saves to create a future devoid of hustling.