Wealth building for women can become an ever-growing challenge in the never-ending pursuit of a balanced life. Basic budgeting for daily consumption, children’s education funding, personal expenses, recreation, and financial independence are a few essential elements of wealth building for women and their families.
If you’re a woman building wealth in your professional career or a stay-at-home mom, these wealth building tips are for you. Whether you want to reduce financial obstacles, save up for your grand family vacation, grow your business, or build your dream house for an awesome retirement, here are 10 wealth building tips for women.
Wealth Building for Women Tip #1:
Take Initiative In Your Family’s Wealth
One of the common mistakes many women make is letting your spouse or partner manage all of your family’s money and the wealth management strategies related to your family’s financial affairs. Then, when divorce, death, or disability happens, and you end up suddenly single, you’ll be in a terrible position to deal with your family’s financial challenges.
In my book, Make Your Money Count, I recommend that women take a leadership role in managing the family’s wealth. Women tend to bring a fresh perspective to the issues related to family wealth management. I strongly suggest you always maintain a seat at the head of the table when it come to Financial Planning.
Your input, direction, and control of your family’s wealth strategies can be a critical element that will often positively influence outcomes at every stage of your family’s financial life.
Wealth Building for Women Tip #2:
Consider Multiple Revenue Streams
Women who search for additional earning opportunities tend to have an uncanny ability to create more wealth. Women who settle for a single revenue stream (or whatever allowance your husband gives you on a monthly basis) may not develop the muscles needed for true financial independence.
Women who have multiple revenue streams, on the other hand, tend to have plenty to spare when things get tight or in the event of family emergencies. And more importantly, industrious wealth building women can be a powerful example for the next generation.
Women can create passive income by running a business a home or by making investments that let you earn without physically working.
I have one client who enjoys doing investment research and the profit from her investments pay for some amazing family vacations. Another friend said “yes” to her unique ability for public speaking and her opportunities provide a steady income that far exceeds her husband’s income.
And, while the money is helpful, her sense of purpose has inspired many women to take bold steps to make a difference using their own unique ability.
Wealth Building for Women Tip #3:
Plan Your Financial Future Early
As professor of Personal Finance at the Bauer College of Business at University of Houston, I encourage everyone, especially young women, to start investing in their retirement now. For a sneak peek at this semester’s lesson, check out this short youtube video: The 3 Laws of Personal Finance.
Wealth Building for Women Tip #4:
No Debt is Cool
Women who are buried in debt often experience more stress than men. The longer a woman waits to tackle debt, the more the mountain grows. In my class at UH, I’ve seen debt, especially student loan debt, create mountains of anxiety in women.
If you owe money to anyone, create a plan to pay it off as soon as possible. Dave Ramsey’s snowball effect is a simple and effective way to shrink your mountain of debt fast.
Wealth Building for Women Tip #5:
Save More for What Matters Most
Most women I meet have some sort of savings on the side. Maybe you have a hidden vault at your house, a secret account at the bank, or stash of cash in your couch. The Women’s Institute for a Secure Retirement notes that one savings account may not be enough. Instead, women should build three sources of wealth, including:
- individual or personal savings,
- Social Security, and
- pension or retirement savings plan like a 401(k).
Because women often take time off work to give birth or take care of the family, their Social Security benefits and retirement savings tend to be less than than their husband’s. So, it is important that women build wealth by storing up additional money for What Matters Most.
Wealth Building for Women Tip #6:
Plan for Success, Significance, and Satisfaction
When you consider the growing demand of each individual in your family and the impact of inflation on your wealth, it’s important to have a solid plan to save even more than you think you’ll need for your future.
Keep in mind that taxes and health care expenses can also blow your budget fast. So, make sure you have an effective plan for your financial future.
I recommend The Blueprint for Financial Success as a tool to help you gain more clarity, confidence, and contentment. It’s part of our Free Consultation at FamilyWealthBuilder.com.
Women who achieve Success, Significance, and Satisfaction tend to have a clear plan, specific goals, and action steps that move them — and their family — from where they are today to where they want to be in the future.
Wealth Building for Women Tip #7:
Fundraising Outside the Box
Women who earn income from corporate jobs can quickly learn how to fund business ventures from home. If you have a good idea for a business venture, you can stretch the value of your start-up dollars’ through a number of crowdfunding sources.
Wealth building for women with good business ideas is easier today than ever before thanks to Crowdfunding and Crowdsourcing websites such as Kickstarter, Indiegogo, and GoFundMe.
Wealth Building for Women Tip #8:
Barter and Bargain Hunting
Women who want to start a business can save on startup costs by offering your services in exchange for another service. For example, maybe you’re a blogger or web designer. Let’s say you need to hire financial planner. It’s super easy to find a Certified Financial Planner™ online.
I know a CFP® Professional in Houston who would gladly exchange Financial Planning for work on his website.
Instead of paying cash, make a deal to provide a Certified Financial Planner™ in your area of influence a year’s worth of new and fresh financial articles for her website.
Many professionals, including most Certified Financial Planner™ professionals will have plenty of great content. However, most CFP® professionals don’t have the time or the skill for posting, organizing, and promoting that content online. This is just one example of barter and bargain hunting that can help you save money and build wealth.
Wealth Building for Women Tip #9:
Avoid Advertising Costs
Women can easily market a business simply by putting it out there. Women who want to build wealth can save thousands of dollars by avoiding the cost of so called marketing experts. With today’s technology and the pure power of social media like Facebook, Twitter, LinkedIn, and Pinterest, you can avoid traditional advertising costs and simply market your business or your brand by showing up as yourself.
Think of marketing as serving rather than selling. Women who have discovered their own unique ability find it super easy to connect with people on social media. Promote your business on a more personal level by simply communicating what you do and why you do it.
Women who are clear about the value of the service they provide will attract more business than they can handle.
Wealth Building for Women Tip #10:
Know Your Value… And Don’t Discount!
When it comes to selling your unique ability, women seem to have a tendency to undervalue their service, skill, and talent. When you know your value, you can easily charge what you deserve.
The same wealth tip applies to women who work in traditional corporate jobs. For example, if you know how to negotiate a higher salary, you’ll easily command a higher salary. When you know your value, you can offer your services at a fair price and you don’t need to discount your value. Obviously, this wealth tip is also true for men.
In my experience, women are generally more likely to discount their services. What’s your experience?
Wealth building for women is easy when your purpose is clear and you understand your unique ability. Women with this kind of clarity have a lot more potential to make a difference wherever they are — whether in a corporate role, entrepreneurship, politics, community service, or at home with your own family.
Have you taken the time to discover the truth about who you are, how you show up, and why you do what you do? It’s a lot easier to get clear about your unique ability than you might think — and being clear makes a big difference — especially if you’re a women who actually wants to make a difference.
Hopefully these 10 tips wealth building for women will give you some actionable ideas for building your financial future — and, lasting wealth for your family.
Please consider sharing this iTunes podcast and the post at FamilyWealthBuilder.com with a couple of women you know who make a difference in your life. Search Wealth Building for Women in itunes and please leave a 5-star review if you found this article helpful.
