Although the word “slavery” conjures up strong feelings, it’s not too dissimilar from what you might go through if your marriage isn’t financially secure. Even the most devoted husband, for example, can experience a collapse. They effectively have influence over you if they own all the money.
Naturally, getting reprimanded for spending a lot of money on shoes initially seems like nothing. However, it might signal the beginning of a downward trend. After all, if you have the money, who should tell you what to buy?
A woman who is financially independent, however, is free to make decisions about her life. Additionally, since things can and do go wrong in life, it is wiser to have a plan.
Reaching financial independence is classified by psychologists as one of our basic needs to feel safe.
If that’s not enough, look at the following reasons to be a financially independent woman:
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1. Divorce and death
Why a woman should be financially independent starts with the fact that things go wrong in life. For example, if your husband owns your property portfolio and you get divorced, you’ll have to go through expensive legal proceedings to get your share.
If you’re not a financially independent woman, you also run the risk of being excluded from your husband’s will. Not all children cover the costs of their estranged mother’s lifestyle.
2. Be a role model
Being a financially independent woman means not giving away your power. If you were brought up with a traditional viewpoint, you might expect your husband to oversee money matters.
Instead, be a role model to your children and appreciate that you have a choice. You can set boundaries and be your own person by showing how women and financial independence go together. Moreover, you’ll encourage mutual respect in your marriage.
3. Life choices
We make choices every day ranging from simple decisions about clothes to life changing ones. Children are always big on the list of decisions and often, it’s women who stop their careers.
A financially independent woman can still balance being a stay-at-home mum with having her separate income stream. This can be passive in the form of investments or creating a side gig selling online, for example. Creativity is the key to how to be a financially independent woman.
4. Longer life expectancy
The average age for women to be widowed is 59, according to this CNBC article. That’s a great reason why women should be financially independent especially considering we tend to live into our 70s and 80s.
5. Mental health
As this paper describes, a financially independent woman is a more balanced person with greater wellbeing. Money might not buy happiness but it does give autonomy and a sense of competence. So, follow the steps to becoming financially independent described in the next section.
15 ways to become financially independent
What does financially independent mean? As mentioned, everyone has their opinions but the following methods give you a starting point to be the financially independent woman you deserve to be.
1. Define your goals
One of the first steps to becoming financially independent is to work out what you need and what you want. For instance, what do you aspire to?
To become a financially independent woman, you need short, mid and long term goals. Another tip is to have at least 3 to 6 months saved away for an emergency.
2. Separate bank accounts
Getting married doesn’t mean you hand everything over to your husband. Of course, many couples have a joint account for shared expenses. Nevertheless, you can and should hold onto your accounts to remain a financially independent woman.
3. Know your cash flow
How to be a financially independent woman means knowing what comes in and goes out. It sounds simple but many forget this especially with the ease of credit cards, for example.
To calculate your cash flow, you need to include every tiny detail including birthday presents, your coffee break, and dry cleaning. You can simplify this though and just allocate an amount per week for extra spending.
4. Save with a growth mindset
It’s easy to forget that the future comes around quickly. A financially independent woman looks ahead and puts money aside every month. Many suggest saving at least 10 to 20% of your income wherever possible.
This becomes easier with a growth mindset where you believe you can save if you make some personal changes. In contrast, a fixed mindset stays stuck in the belief that nothing can ever change.
Listen to behavioral scientist Wendy De La Rosa who describes 3 psychological tricks to save money:
5. Avoid credit cards
You have to pay off debt before you can be a financially independent woman. Credit cards are how many have become slaves to their husbands if they don’t have their own means of paying. No one wants the debt collector banging at the door.
6. Learn the financial basics
There’s no doubt that women should be financially independent but it does take a bit of effort. You’ll need to understand not just cashflow but also how to diversify your assets.
There are many more options available to a financially independent woman than just savings accounts. The best place to start is to research online, take a course or talk to a financial advisor.
7. Get a prenup
If you’re a financially independent woman, you’ll know all about prenuptial agreements. While they might sound cold and calculated, there’s nothing wrong with mitigating risk when you can.
No one plans to get divorced, but things happen in life. Moreover, if your future husband has an issue splitting things equally then you have to wonder what he’s hiding.
8. Consider health insurance
Health issues can suddenly bankrupt you if you’re not careful. Most of us hide behind youth for most of our lives and one day, we wake up and realize we’re old, which is when it’s harder to get good health insurance.
Even if your work offers health insurance, you never know when you might lose it or even if it covers what you need. Financial independence is about knowing your needs and expectations.
9. Understand your credit score
A financially independent woman is free to make her life choices, including purchasing decisions. No one wants a nasty surprise when trying to get the relevant loan because they have a bad credit score.
Instead, make sure that a good credit score is part of your financial goals. This includes getting rid of debt and credit cards.
10. Build your wealth
Educate yourself about how to make money with money. This includes investing in stocks that give out dividends using savings accounts and tax rebates, among other ideas.
