Money… it’s at the heart of everything, even if we don’t like to admit it, and that means it has to be more than just numbers on a screen – you can think of it as freedom, choices, and confidence as well. But the fact is that for a lot of women, managing money can be an issue because it’s such a balancing act between short-term needs and long-term goals (as well as everything in between). So no matter what you’re doing with your life or what your ultimate aims might be, understanding your finances has to be a priority because it gives you power and confidence. With that in mind, keep reading to learn more about the confident woman’s guide to managing her money.

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Know Where Your Money’s Going

Before you can even think about growing your finances, you need to understand them, and you can start by tracking your spending for at least a month, meaning everything from the big bills to the little treats. Seeing it all written down gives you a much clearer idea of where your money really goes, and once you know, you can make changes if you need to.

There are plenty of budgeting apps that can help you do it, or you can just use a simple spreadsheet or even a piece of paper, but however you do it, you’ve got to be honest about it, and don’t miss anything else, even if it seems like it’s unimportant – it literally all adds up.

And of course, once you know what you’re spending, you don’t have to cut everything out that makes you happy, but if you do notice that you’ve got a lot of monthly subscriptions that eat into your spare money or you have a few more takeaways that you thought, you can make a decision about what to do next.

Have Financial Safety Nets

Something to bear in mind is that if you want to be confident with money, you need to know it’s secure, and having a buffer means you can feel safe no matter what life throws at you. An emergency fund, which should be at least three months expenses, but ideally more like six, is a great idea because it means that even if something unexpected happens or something goes wrong, you’ll still be able to pay your way.

If saving that much isn’t possible (and it’s definitely not easy), just start small because even a little bit each week is going to add up over time. As long as you’re consistent, you’ll see your savings build and that gives you motivation to save more and more.

Learn The Basics Of Investing

Saving money is definitely important, obviously, but letting it grow is how you’re really going to build real wealth, and the good news is that investing isn’t as scary and complicated as you might think – there’s always a risk, yes, but you can minimise that risk as much as possible. The best thing to do is start small, with manageable steps like learning the difference between savings accounts, ISAs, pensions, and so on. Then you can pick the right option for you.

The truth is that a lot of women hold back from investing because it feels intimidating or as though it’s not for them, but actually, it’s for everyone, and when you invest, you’re making a good future for yourself, as long as you don’t rush into things and you know what you’re doing.

If you’re not sure where to start, research some low-cost investment platforms or perhaps talk to a financial advisor who can point you in the right direction and answer your questions.

Protect What You Build

So what happens next once you feel more confident about managing your money? The next step is to make sure you’re protecting your assets because the last thing you’ll want is for anything to happen after spending time and energy amassing them. So that means having the right insurance for your home, car, income protection, and so on, and it’s also crucial to have your important documents in a safe place.

More specifically, if you own property (which can be a wonderful investment) or manage rentals, good systems are going to make all the difference, and using one of the best tenant screening services, for example, helps you protect your investment by ensuring you have reliable, trustworthy tenants in there. That’s going to save you getting stressed and it protects the income from your investment at the same time.

Think Long-Term

It’s easy to feel secure with your money right now, especially if your bank balance looks nice and healthy, but what you really need to do is think about the bigger picture – try to think a few steps ahead when you’re making decisions so you don’t find you’ve wandered off in the wrong direction and have to retrace your steps (which can be expensive).

Long-term planning also means thinking about retirement, even if it seems like it’s so far away you can’t imagine it. One good thing to do is set up an automatic pension payment to a good provider if you haven’t already, and make sure you have all the information about any workplace pensions too – the more information you have, the better and more secure you’ll feel.

Make Money Conversations Normal

One of the best ways to feel confident about money is, perhaps surprisingly, to talk about it. We say surprisingly because talking about money is usually seen as taboo, and something that really should be kept private, but the fact is that open conversations give you much better understanding, you can make better decisions, and you’ll get support if there’s a problem – plus you’ll realise there are other people in the same situation as you, so it won’t feel quite so worrying (if you’re worried, that is).

So make it normal to talk to your friends about things like savings goals, or perhaps you could share budgeting tips or even discuss salaries and salary negotiations (and how to do it), for example. You’ll probably be surprised at just how many people have the same questions and insecurities you do, and making those discussions normal helps everyone in the end.