Money mistakes you should avoid

Financial empowerment is essential for women, yet sadly, many still find themselves making avoidable money mistakes, usually out of habit, misinformation or societal pressure. Whether you’re managing a home as a single mom, building a career, or running a business, the way you handle your money can shape your future. But the good news is, it’s never too late to shift course.

Many women focus on short-term needs like paying bills, covering family expenses, without thinking long-term. A recent study by Fidelity Investments found that only 33 per cent of women feel confident planning for retirement. Start by setting clear goals. Whether it’s saving for a home, your children’s education or retirement, a plan will give you direction and peace of mind.

Again, many women are guilty of this. If she’s not relying on her partner or a parent, it’s on someone else. Allowing those financial decisions to be made on your behalf can leave you vulnerable. Financial independence is key. Open your accounts, track your expenses and make sure your name is on important assets.

From under-pricing a service to not negotiating salaries, women frequently sell themselves short. Do you relate? This impacts not just your income but long-term wealth. As financial coach Suze Orman advises, "You are not just working for a paycheck, you are working for your future." Know your worth and ask for it. The ripple effect on your savings and investments is significant.

Life is unpredictable. If 2020 didn’t teach you anything, you risk a long, tough financial road ahead. Yet many women lack an emergency fund, turning to debt when unexpected expenses arise. Aim to save at least three to six months’ worth of expenses in an easily accessible account. Automate the savings if possible to make the process efficient.

Women tend to save more but invest less often out of fear of risk. But avoiding investments entirely is a risk in itself. Think about it. Before writing it off, why don’t you learn the basics of stocks, mutual funds or real estate? Start small if needed and research on beginner-friendly platforms that have done most of the heavy lifting for you. 

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