Money Mindset — Tips for Young Women
5 tips to get you thinking about building the right mindset to become financially independent.
Money can be a challenging topic to tackle. Many of us dream of achieving a better lifestyle while others are aiming at maintaining their current ones when they become financially independent. No matter which one of these two is your goal, achieving the lifestyle you desire requires the right mindset.
Your mindset affects how you frame your thoughts and think about the steps you take, by shaping your habits and your decision-making. Having a positive mindset allows you to keep a good attitude with your goals in sight, no matter how distant they may feel at the beginning.
So let’s dive right into what the 5 tips are!
Tip #1: Knowledge has Many Facets🧠
Being book smart is only one of the many facets of knowledge, and a lot of them you can learn outside of school. Here are some skills you can practice both in your private and professional life.
Emotional intelligence. Emotional intelligence, also known as EQ, refers to the ability to comprehend, use, and address your emotions in order to relieve stress, empathize, and communicate effectively with others. Intellectual ability alone is not enough. EQ can affect your performance at school or work, physical and mental health, as well as your relationships.
Critical thinking. Critical thinking refers to being able to objectively evaluate an issue in order to make the right decision. Developing this skill will help you while making decisions about your finances as well as in multiple aspects of your life.
Communication skills. Successful communication can improve both your private and professional life. Like most things, it requires practice and time to be improved. When talking to others, give them your full attention, so that you can truly understand them and give a relevant answer. This will also show that you can be trusted and that you care about the conversation.
Tip #2: Aim to be Your Own Provider💁♀️
All of us have different socio-economic backgrounds, upbringing, and cultures. Nonetheless, as young women, we can all work towards becoming our own provider. Even if you are not the “breadwinner” in your household, having your own job or side hustle can truly make a difference in your life. It will help you develop and maintain the skills to be able to provide for yourself and for your children if you have any. Even a hobby or a side hustle can turn into income over the years. Work hard for yourself and whoever that may depend on your financial support. Financial independence and stability take years to achieve, so thinking long-term, while setting short-term goals along the way, will help you with keeping yourself motivated.
Tip #3: Intentional Investments 📈
Intentionality is key and investments are not just in terms of money. Your time and energy are valuable because YOU are VALUABLE.
Being a young woman with a clear path you have yet to define can be challenging. There are so many different things requiring our attention, whether it is school, work, family, friends, volunteering, being active… the list goes on. As women, we tend to underestimate the worth of our labour, whether it is physical or emotional. This issue is also known as the confidence gap.
So, take some time and ask yourself:
“ Why I am choosing to do this activity?”
“What is the goal that it contributes to achieving?”
“Is it helping me grow?”
Nowadays, so many places ask for volunteers or unpaid interns. While doing something out of the kindness of your heart is great, and having something on your resume is a good idea, is this something that is actually going to boost your job search in the future? Or would there be a better way you could be using your energy and time? It goes without saying that time is money does have some truth to it: what you invest your energy and time in, will make a difference.
Tip #4: Learn to Live on Less Than You Make 🤑
How many of us have gotten their first paycheque and immediately went out to spend it? Having a bit of extra money at the beginning feels good and makes you want to satisfy your wants. And by wants, we do not mean needs. This is not to say that you should not treat yourself every once in a while, but when we have more money available, why not save it or invest it? The return on it will likely be higher in the future and we will certainly not regret it.
If you can live on less than what you make, by satisfying your needs such as food and rent, as well as a few wants, such as an occasional shopping spree, you will be walking towards more financial stability in the future. Maybe you are a student and you can only save 50$ a month of your paycheque, or maybe you can save more, but in the end, learning to live on less than you make, even if it is only a little bit less, will get you in the right direction.
Tip #5: Gain Experiences 👷♀️👩⚕️👩🎓
Yes, experiences plural: try new things, try getting a new part-time job, or check out a new book you have had your eye on. The more open to trying new things we are, the likelier we will be able to tell what we want in life, and what we do not. Experiences, positive and negative, contribute to making us grow.
Staying open-minded, being open to making new experiences and meeting new people will all contribute to building your “money mindset”. This journey can be long and daunting so don’t be scared to ask for help or advice, and don’t be too hard on yourself. Focus on your strengths, rather than what you need to work on more. When talking to yourself, speak as you would to a friend: you would remind them about their qualities and how important they are to you, not about what their shortcomings are, or that they are unworthy. Be kind to yourself, just as you would be to your friend!
We hope you enjoyed this article and would love to hear from you in the comments ❤
This article was written in collaboration with femininiteas.
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Write up: Martina
Charts: Sigrid
