Source: R1 Digital / other
March signifies Women’s History Month—a period dedicated to honoring the extraordinary contributions made by women throughout the ages. Despite significant progress, many women continue to face hurdles in achieving financial independence and security. Financial expert Jini Thornton shares essential advice tailored specifically for women to navigate their financial journeys, emphasizing effective strategies to build wealth and secure a prosperous future. Here are her five invaluable tips.
1. Confront Your Finances Courageously
Jini encourages women to take charge of their finances without fear. “The running is over,” she states, urging individuals to embrace their financial realities. While it may be tempting to avoid confronting financial challenges, understanding your current situation—whether that’s debt, unclear budgets, or insufficient savings—is a sign of empowerment. Recognizing your starting point is the first step toward achieving lasting financial wellness.
Action Steps:
- Evaluate your income, expenditures, debts, and savings.
- Develop a realistic budget that places you in control of your financial narrative.
2. Set Up Automated Savings
If the thought of having no savings worries you, Jini’s approach is to incorporate “automation and separation” into your savings strategy. By having a portion of your paycheck transferred to a separate savings account, you can eliminate the temptation to spend the money before saving it. Consider using a bank account that doesn’t offer easy online access to your funds, making it more challenging to withdraw savings impulsively.
Action Steps:
- Establish automatic transfers to a savings account on payday.
- Utilize a savings account that you don’t check frequently to minimize the temptation of withdrawals.
3. Secure Your Future Starting Young
For young women, particularly those in their twenties, Jini stresses the importance of making financially responsible choices today for the benefit of your future self. “Your older self is depending on your decisions now,” she reminds her audience. Building financial discipline through consistent savings, investments, and contributions to retirement accounts lays the groundwork for long-term security and stability.
Action Steps:
- Begin contributing to a retirement fund, however small.
- Adopt a habit of regular saving and investing.
4. Leave a Well-Planned Financial Legacy
Jini emphasizes that older women should aim to establish a clear financial legacy for their loved ones. “We need to ensure order in our financial lives,” she explains. Beyond accumulating assets, the goal is to guarantee that beneficiaries are well-informed and prepared to handle the legacy left behind. Key actions include updating wills, specifying beneficiaries, and organizing crucial financial documents to avoid confusion for future generations.
Action Steps:
- Review and update your will and life insurance beneficiaries.
- Compile a list of essential financial documents and inform trusted individuals of their locations.
5. Treat Savings as a Non-Negotiable Expense
Jini’s final crucial mindset shift is to prioritize savings as a non-negotiable expense. It should be the first “bill” you pay each month. By reassigning funds for savings before addressing other spending needs, you create a framework that challenges you to manage your remaining budget effectively. Even initiating savings with just $10 per paycheck can foster habits that lead to long-term financial stability.
Action Steps:
- Design your budget so that savings are the first allocation.
- Start with an amount you can manage, regardless of how small—every bit counts.
In conclusion, Jini’s empowering message highlights the significance of intentional financial practices for women. Building a safety net, preparing for the future, and creating a lasting financial legacy are all attainable goals. “Being intentional means being focused,” she expresses. By being proactive about your finances and committing to these empowering steps, you can shape your financial destiny and foster a secure future for yourself and generations to come.
