Not all the time but, sometimes women shy away from being in control of their finances. It depends on the person, but it could be because of the way they’ve grown up with money, or maybe they just don’t have an interest in it. No matter the reason, it’s understandable not to want to be the sole person in charge of the money. Even though it pains me to say it, not everyone has a passion for money management. The thing is, even if you aren’t the person in charge of the money for your family or if financial management isn’t your cup of tea, it’s still YOUR financial life, and you should have some understanding of it. That’s why I put together these five things every woman should know about money.
1. Credit Score
Knowing your credit score is part of your financial health, by knowing your score you’ll be able to make better financial decisions. Your credit score tells lenders how likely you are to be delinquent on a loan based on your past credit history. As a gauge of where your credit is at, a good credit is usually considered 700 or higher. The higher your score is, the better interest rates companies will extend when you’re borrowing money. Also, know the credit scores of your spouse or finances. Once you’re married, your credit scores do not merge into one, but if you apply for joint credit for a house or vehicle, then they’ll look at both scores. If one person’s score is lower, it may mean a higher interest rate for both. Experian, one of the three credit bureaus, is an excellent resource for detailed credit score information.
2. How To Budget
Creating and maintaining a budget is the best way to have an understanding of your financial situation. Through budgeting, you’re learning how much money you’re spending and bringing in each month. It’s easier to stay on track and be prepared for emergencies when you have a full picture of your finances. When a person knows how to budget, they know how to stay out of debt and build their wealth.
3. How To Bank
For most everyone, a bank is where you keep your money and therefore, is a critical part of your money life. Your money is not only held there but is removed by you to pay for bills and for things you want. Understanding your bank accounts through balancing your checking account after spending and deposits helps you know exactly how much money you have. When you know exactly how much money should be in your account, you’ll be aware if there is a mistake made by the bank (it happens more than you think) or if there are fraudulent purchases made with your money. Having an understanding of your bank accounts is an overall good way to avoid money problems down the line.
4. Live On Less
Building wealth comes from spending less money than you make each month. It’s also important to pay yourself first by saving money each month for emergencies and retirement. The ability to do that comes from not spending every penny you make. That’s how to get financially ahead. Creating the culture of “spending less than you make,” will help to reach the success you want with money.
5. To Believe In Yourself
Everyone is at a different place with their money. There are many circumstances and life events that have brought us to this point. There’s no use living in the past about how you’ve managed money, for better or worse. Either you haven’t been managing money well, and you’re going to improve, or you’ve done well with money, but you still have to keep it up. What matters is how you go forward. Believe in yourself and that you have the ability to handle your financial life. No one knows you or your situation better. You’re fully capable of creating and maintaining your money life. Remember that!