financial independence for women

Personal finance may not be every woman’s favorite topic – but it’s one of the most important things she’ll ever take care of in her life! Here are six steps to financial independence for women, with inspiration from the strong, successful author Ayn Rand.

“You can avoid reality, but you cannot avoid the consequences of avoiding reality.” ~ Ayn Rand.

If you’re not taking control of your money, sooner or later you’ll face the consequences of your inaction (or your irresponsibility – ouch!)…and it won’t be pretty. These steps towards financial freedom for women are from Lois Frankel’s Nice Girls Don’t Get Rich: 75 Avoidable Mistakes Women Make with Money– click for more information. And, read on for six ways to strengthen your sense of personal finance….

6 Steps to Financial Independence for Women – Ayn Rand

1. Schedule your “retire rich” or “find financial freedom” time. Take an hour a month to think about how you can be a financially independent woman. Do you need to learn about basic personal finances, figure out where to invest $100 a month, or learn how to put money towards your retirement or children’s education? Block off an hour a month (or an hour a week, if you’re really motivated!) to pursue your financial goals.

2. Identify the flaws in your personal finance plan. If you’re not financially independent, then figure out where the wheels fell off the bus. Are you charging up your credit card bills and avoiding your student loan or mortgage loan debt? Are you financially supporting a spouse or family member when they should be doing it themselves? If you’re not financially independent, it’s for specific reasons – and the sooner you uncover those reasons, the further along the road to financial independence you’ll be.

3. Attend one personal finance course or investment seminar a month. “You can find these classes at community colleges, extension programs, credit unions, and even online,” writes Frankel in Nice Girls. “Many investment firms offer short evening programs designed for the financial novice.” If you’re going to a seminar at an investment firm, resist their sales pitches…learn as much as you can about investing your money, building your retirement income, and living within your budget. As Ayn Rand said “The ladder of success is best climbed by stepping on the rungs of opportunity” – and those opportunities may be right in your back yard!

4. Learn where your money “should” be going. Financial experts say your income or earnings should be divided up in specific ways. For instance, 10% of your income should be going to savings or investments, 25-40% to mortgage or rent, 8-15% to home-related expenses, 10-20% to food, 15-25% to transportation, 8-15% for medical expenses, 3-5% for clothing, 5-10% to personal or miscellaneous, and less than 5% to personal debt such as student or personal loans. If you’re spending more than these suggested amounts, then it may be time to consider shifting your expenses.

5. Take care of your credit rating by balancing your checkbook every month. “If you’re one of those women who make deposits but don’t reconcile their checkbook, then you’re more likely to treat money as dispensable – not something that has to be cared for and looked after,” says Lois Frankel. She encourages women who want to be financially independent to reconcile their accounts every month (or more often!). Your financial activities directly affect your credit score, which affects your ability to get mortgage or business loans. And if you want to be a female entrepreneur or start your own business one day, you’ll need a strong credit rating.

6. Remember that you can control your money – it doesn’t have to control you. Ayn Rand said, “Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” Maybe you were taught to let men manage money when you were growing up, or that money isn’t feminine or ladylike. Banish those thoughts! Remember that money is just a tool to help you enjoy life – it’s doesn’t have to be something to avoid. Use your “financial freedom time” to learn as many money lessons as possible.

Here’s one of my favorite quotations for successful women: “The question isn’t who is going to let me; it’s who is going to stop me.” ~ Ayn Rand.

The only person who can stop you from achieving financial independence is you. Get out of your own way – and See Jane Soar!

If you have any thoughts or questions on these steps to strengthening your sense of personal finance, please comment below…

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