5 Financial Wellness Tips Just for Women

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Women face a financial literacy gap in this country. Keep reading to learn how to transform fear into freedom. [[{“value”:”

In the landscape of personal finance, a concerning term, “Girl Math,” highlights a stark reality: nearly 4 million U.S. women face a financial literacy gap, possessing skills below what’s expected of a third-grader. This stark statistic, however, doesn’t spell defeat, but rather a call to arms.

It’s time to harness wisdom from leaders like Veetahl Eilat-Raichel, a fintech entrepreneur who has navigated the highest echelons of corporate finance, to empower women toward achieving financial wellness. Here are her refined strategies to transform your financial health, debunking the “Girl Math” myth for good.

1. Face your financial fears head on

Imagine a world where the mere thought of peeking at your checking account balance doesn’t send shivers down your spine. For a majority, this is a distant reality, with over half of Americans admitting to a deep-seated fear of confronting their financial status. The first step toward empowerment is confrontation.

Log into your account and learn where every dime is spent to help dismantle your anxiety surrounding money. This practice isn’t just about tracking numbers; it’s about establishing a relationship with your finances based on transparency, control, and, eventually, pride.

2. Embrace the role of financial therapist

Your relationship with money, much like any relationship, requires introspection and understanding. Begin with a simple exercise: review several months of bank statements and identify your spending patterns. What expenses bring you joy, and which ones trigger regret? Which costs are essential, and which can you live without?

This process might unveil some uncomfortable truths about your spending habits, but acknowledging these patterns is the first step toward financial wellness. Armed with this knowledge, setting realistic goals and a budget that aligns with your values and financial objectives becomes not just possible but empowering.

3. Reassess and reset your budget

In an economy where prices seem to be constantly climbing, adjusting your budget to mirror the current cost of living is more crucial than ever. In February, the seasonally adjusted Consumer Price Index for All Urban Consumers increased by 0.4% and experienced a 3.2% rise over the past 12 months without seasonal adjustments. The allure of solving financial shortfalls with credit cards is understandable, but fraught with long-term pitfalls.

Instead, take on a budget recalibration, grounded in realism and foresight. This can guide you toward living within your means. This approach encourages a proactive stance against debt accumulation, fostering a healthier financial mindset prioritizing sustainability over momentary satisfaction. Budgeting apps help many people get a better grasp on their finances.

4. Guard against lifestyle creep

With its endless stream of targeted advertisements and one-click purchase temptations, the digital era makes maintaining financial discipline a formidable challenge. Yet, safeguarding against lifestyle creep — a phenomenon where increased income leads to proportionally higher spending — is essential for long-term financial health.

Implement practical barriers against impulsive spending: remove easy payment options like Apple Pay from your devices, clear saved credit card information from online stores, and unsubscribe from marketing emails. Though seemingly small, these steps can significantly diminish the temptation to overspend, reinforcing your commitment to financial wellness.

5. Cultivate robust credit health

Credit scores are the gatekeepers to financial opportunities, influencing your ability to borrow, the rates you’re offered, and even your eligibility for certain jobs or housing options. Start by obtaining a free credit report to gauge where you stand.

Then consider reducing your credit utilization ratio by paying down debt — transferring high-interest balances to cards with 0% APR offers can make this easier. Contrary to intuitive thinking, having multiple credit cards with low balances can positively affect your credit score by demonstrating responsible credit use and management.

Achieving financial wellness is a journey marked by education, self-awareness, and proactive management. By facing financial fears, understanding your spending habits, adjusting your budget to reflect real-world economics, guarding against lifestyle inflation, and nurturing your credit health, you can lay the foundation for a robust financial future.

Let’s challenge the “Girl Math” narrative by empowering ourselves with the knowledge and tools to achieve financial independence and wellness. Let’s redefine what it means to be financially savvy, not just for ourselves but for generations of women to come.

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