Why Is Money Such a Difficult Topic for Women?
Money is a challenging topic for many women. In this post, I'll share some tools that have helped me navigate these challenges and might help you too.
Understanding the Complex Relationship with Money
Money can often be a sensitive subject. Thinking about it can make many women feel uneasy. Growing up in a household where money was frequently discussed, I didn’t develop a healthy relationship with it.
For women, money can be an emotional and complex issue. We often struggle to balance the desire for independence with the fear of appearing greedy. We face patriarchal structures that have historically limited our earning potential. We've been socialised to be polite and not pushy, making it difficult to negotiate better salaries. This also affects our ability to set our own prices as entrepreneurs.
For many men, financial transactions like spending, investing, lending, and borrowing are straightforward. Money is seen as a tool to drive progress and business growth. However, research shows that women can outperform men as investors when they take control of their finances. It's crucial to understand that money is simply a means of exchanging goods and services.
Challenge Societal Beliefs
Media, advertising, cultural norms, and socialisation often make us believe that wealth equates to happiness and success. We’re bombarded with messages suggesting we need to buy certain things to be content.
Interestingly, during the Covid lockdown, many people's shopping habits changed. We rediscovered that we need very little to be happy. As the world speeds up again, finding the right balance is key. Supporting small businesses and the economy is important, but you must prioritise your own financial stability.
Take Control of Your Finances
Money issues can be pressing, but they don’t have to be permanent if you keep moving forward. Don’t make the same mistakes I did when I struggled to pay for basics like electricity and food. Remember, no situation is permanent, and the world keeps moving. You need to keep moving forward with it.
Over the years, I’ve developed strategies to manage financial anxiety. These strategies have brought me financial freedom through discipline and the principles of the Ziva Way. Here are some tips that might help you too:
1. Determine Your Financial Minimum
I know I can survive on £1,200 per month. When I lived in South Africa, my minimum was £380. Everything extra was a bonus. What is your minimum?
To find out, track every expense for one month. Write everything down and distinguish between essentials and leisure activities. Be honest with yourself. This exercise is about taking control of your life and understanding your spending habits.
2. Build Your Savings
Knowing your financial minimum is crucial because the rest should go towards your savings. Make no excuses! Watching your savings grow can be a joyful experience.
Establish an Emergency Fund:
Create a savings account with at least six months' worth of your minimum expenses. This is your "Emergency Fund" for true emergencies like losing your job, car repairs, or health issues. Don't touch this account for anything else. It will give you a sense of security and reduce financial anxiety.
Create an Essential I Deserve It Account:
Set up a second savings account for fulfilling your dreams, like a new car, additional education, or starting a business. Use this account to achieve significant goals that bring you closer to your desired life.
Create a Pleasure Rewards Account:
This account is for fun and indulgences. Start small and add funds from bonuses, gifts, or even a reward system for yourself. Use this money for non-essential treats, like new shoes or a fancy dinner.
Understand Money
Many women are not taught how to manage money and see it for what it is. Money is a global system that allows us to trade, but it’s not always fair. Salaries, product prices, and service costs can seem arbitrary.
However, you can learn to play the money game and set your own prices. Negotiating salary increases or setting your rates as an entrepreneur can be challenging, but it’s a skill that can be learned.
Promote Fairness and Equality
One disturbing trend is women undercutting each other. If we want equal pay, we need to start paying each other fairly. Stop bargaining with your sisters and pay women what they are worth. Many women are worth more than their male counterparts.
There Is Enough for Everyone
There is enough money for everyone to thrive, although the distribution may not always be fair. By focusing on your community and supporting those around you, you can create a more equitable environment.
Stop competing with and comparing yourself to other women. Focus on what really matters and build others up. Everyone is unique, and there is space for all of us to succeed.
If you’d like to learn more about negotiating and managing finances, check out resources from MoneyHelper, UK Finance, and the Financial Conduct Authority.
References
- [MoneyHelper: Financial Education](https://www.moneyhelper.org.uk/en)
- [UK Finance: Contactless Payments Surge](https://www.ukfinance.org.uk/)
- [Financial Conduct Authority: FCA Survey 2022](https://www.fca.org.uk/)
