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Financial Advice for Women

Why Women with Money Can Create a Better World

It’s time to break down our biases.

Much of the research around how and why women feel the way they do about money management isn’t surprising to us women. According to statistics, 81% of women said they’ve personally been a victim of negative stereotypes – including about their investing abilities. And while this is extremely sad, it’s not surprising to most. I, too, have experienced this firsthand on more occasions than I care to remember, even though I am a finance professional with the experience and qualifications to back it up. 

I remember how every conversation was directed at my husband when I was talking to banks and brokers about obtaining a mortgage. I’d ask a question, and the broker or advisor would proceed to answer it looking at my husband as if he’d asked. As a regional head of finance who was responsible for billions of dollars in company revenues, you’d think I’d be taken seriously – and that’s notwithstanding the fact that the mortgage application was 100% based on my salary and would be my liability! It felt like my gender was overshadowing my financial credentials and my experience. Of course, as a woman, I can’t possibly be the decision-maker or capable of understanding a complex mortgage agreement, right? Wrong.

So much of that bias is unconscious, and it’s present in both men and women. We, as women, often display this bias against ourselves. We believe the stereotype that women are simply not good at managing money – that we cannot control our spending and we’re not good at investing. This idea is widespread and spread across cultures, geographies, and generations. When it comes to money, there is often a canyon of space between our mindsets and money-belief systems. But why is it this way? Thankfully, there is much research on this topic and I’m going to discuss some key facts here. 

How Are Men and Women Different? 

Women are socialised to save money, keep it safe, and not be greedy. Our male counterparts, on the other hand, are socialised to invest, seek out ways to earn as much as possible, and be proud of their financial achievements. For men, earning vast amounts of money is seen as powerful and impressive.  Because of this, women tend to hold 71% of their assets in cash and shy away from sharing what they earn or have. Men, on the other hand, hold 60% of their assets in cash and are more likely to boast about promotions and what they earn.

What I hadn’t considered before was our tendency to use our money to benefit everyone except ourselves. Studies have shown women use money to create a lifestyle in the present. We do that by buying the groceries, making 70% of travel decisions, and organising the day-to-day lives of our families. This is a different spending perspective from the stereotypical one portrayed by the media, where women spend all their money shopping and even need to be given tips to stop or reduce.

On the other hand, we are less likely to plan for retirement, buy life insurance, or be involved in arranging mortgages. In contrast, men use money to create a secure future. They take on the role of decision-maker in significant and long-term financial decisions. Ironically, we women tend to live longer than men and, yet, we are leaving our retirement security in the hands of people we are likely to outlive.

Financial Wellness

Why Do Women Feel Less Financially Confident?  

Money is genderless, and it’s as much of a tool for women as it is for men. So why do we feel so differently about it? This is where it gets particularly frustrating. The divide in money isn’t just about gender pay gaps, there is also a worrying gap in how men and women are spoken to about money. Men are taught the benefits of investing, blockchain, and NFTs, while women are told to stop drinking artisanal coffee so they can save for a pair of designer shoes. 

A study carried out by Starling Bank in 2018 found that 90% of articles targeted at females focus on small ways to save money. 71% encourage seeking out vouchers, discounts, and coupons to save money. 65% define women as excessive spenders, urging us to limit, restrict, and better control our ‘splurges’. Our male counterparts, on the other hand, are targeted with articles about the importance of making big investments, how to mitigate investment risks, and how money can enhance one’s status as a man. Furthermore, 50% focused on how to protect themselves from future harm, including financial harm from divorce. Is it any wonder that arguments over money are consistently reported as the number one cause of divorce?

Why Is It Good to Get More Money into Our Hands?

As women, we use our money to help others. Women invest 90% of their income back into their families, while men only reinvest 44%. When I first came across this, it surprised me, but when I sat back and thought about it, it all made sense. When my mother spoke to me about money, it’s clear now that she assumed my income would be used to pay for my family’s needs. She also urged me to always keep enough aside just in case – which I did, but I too had unconsciously internalised her assumption. My income went back to my family and, for years, I didn’t invest or think long-term either. It was a real wake-up call. 

Despite how the media portrays us, we are more financially responsible than men. When we do invest, we are more likely to invest long-term, we are more patient, and we achieve better returns. Studies show women are more likely to invest in ESG and sustainability, so we use our money to invest responsibly and do good for the planet. We use our money to help our families and our communities, so communities thrive when women make more financial decisions. We currently control over $31.8 trillion in worldwide spending – imagine the positive change we can create with that level of wealth if we felt empowered to use it in line with our values and help others?

Female Empowerment

What Can You Do to Feel More Financially Confident? 

Put yourself on the path to financial wellness by taking small actions that you can do now. What’s most important when you begin is clarity. It means knowing how much money you have, and then creating a plan for where you want your money to go. Ensure the cash flow plan is in line with your values, not what others or the media tell you it should be. Set financial goals that are true to you and then build your budget to achieve those goals. Make peace with your money situation and forgive any past mistakes – every human makes money mistakes. 

If you’d like to know more about financial wellness, get your free copy of my Conscious Finance Coaching Financial Wellness Checklist here.

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Unlocking Prosperity: Three Fundamental Money Principles for Abundant Living

Wealth Unveiled: Prosperity Principles

Money affects every part of our lives. It can bring joy and security, but it can also bring stress and worry. As women, we tend to have a different relationships with money. One thing is certain though: We all want to live a life of abundance and prosperity. Here are some “Money Principles” are not just theoretical concepts, but practical guidelines that can and should be applied in our daily lives to manage our finances effectively. Let’s create a positive relationship with money.

Understanding the dynamics of money and how it works is the first step towards achieving financial prosperity. Firstly, money, in itself, is not the end goal, but a means to an end. It is a tool that can provide us with the resources we need to live a fulfilling life. However, without the right knowledge and understanding, money mismanaged can be a huge blow to our dreams and sustainability. Therefore, it is crucial to learn and understand these fundamental money principles.

The Importance of Money Principles

Money principles serve as a guide for our financial decisions and actions. It’s about creating a framework for managing our finances effectively and responsibly and help us make informed decisions that align with our financial goals and values.

Its imperative we develop a healthy relationship with money. Instead of viewing money as a source of stress or worry, we can see it as a tool without our emotional involvement. Once we remove anger, fear, lack and other negative feelings from the equation, a shift is created in our energy field. This shift in perspective can have a profound impact on our financial well-being and overall quality of life. It can help us overcome financial challenges, achieve our financial goals, and live a life of abundance and prosperity.

The Three Fundamental Money Principles

Principle 1: Spend Less Than You Earn

This may seem like an obvious principle, but it is one that many people struggle with. As of today, we are an out-and-out consumer-driven society. This is an easy trap for anyone to fall into leading to overspending and living beyond their means. This is how one gets sucked into financial stress and debt, hindering our ability to live a life of abundance. It is therefore crucial to develop the discipline to spend less than we earn and live within our means.

The first step to implementing this principle is to create a budget. This involves tracking your income and expenses and setting limits for your spending. It may require making sacrifices and cutting back on unnecessary expenses, but it is crucial for living within your means and avoiding debt. A budget not only helps us control our spending but also gives us a clear picture of our financial situation, enabling us to make informed financial decisions.

Another important aspect of this principle is to save and invest wisely. By setting aside a portion of your income for savings and investments, you are not only preparing for the future but also creating a safety net for unexpected expenses. This can also help you achieve long-term financial goals, such as buying a house or retiring comfortably. Think about building wealth over time.

Principle 2: Give Generously

What goes out must come in! True prosperity is not just about accumulating wealth, but also about sharing it and using it to improve the lives of others. We are not talking about just giving to charity, but also being generous with our time, talents, and resources. It encourages us to share what we have with others and use our resources to make a positive impact in the world.

Giving generously not only benefits others but also brings blessings and abundance into our own lives. It helps us cultivate a mindset of abundance and gratitude, and reminds us that we have more than enough to share with others. By giving generously, we also contribute to creating a more just and equitable society, which ultimately benefits everyone. Give that tip to your hairdresser, sponsor a kid, help out a local charity in UAE.

Principle 3: Seek Wisdom and Guidance

The final fundamental money principle is to seek wisdom and guidance when it comes to managing our finances. This can involve seeking advice from financial experts in the UAE, reading books and articles on personal finance, or even seeking guidance from religious or spiritual leaders. This principle encourages us to continuously learn and grow in our understanding of money and financial management.

When we learn from the experiences and knowledge of others it also helps us stay accountable and motivated in our financial journey.

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