22 Nov 5 Money Habits of Women Who Are Never Broke

Save your coins, the constant reminder to live under your means is something we’ve heard for pretty much all of our adult lives. As millennials, we support each other’s questionable financial habits- where treating ourselves is not something we do once in a while, it has become a part of our self- brand. The Fuck It, You Only Live Once (FIYOLO) mentality has lead us to purchasing $1400 Saint Laurent shoes on a whim, and book between 4-5 vacations a year. While we do well for ourselves in our day jobs, sustaining BAD Bitchery is something we learned takes balance, budgeting and good financial acumen. 

Whether your goal is to save for lavish vacations, home ownership or to have a nice cushion to fall back on,  we’ve experienced it all and share below how you can maintain the lifestyle you want whilst saving for your future.

Your financial glow- up can be attributed to these 5 categories you must focus on; 1. track your spending, 2. make a budget, 3. cut down on extras, 4.automate savings and 5. find ways to make extra money. Here are some tips on how to begin your financial glow-up. 

1. Track your spending: When starting to take your finances seriously you need to have a plan in place which includes outlining your goals. From there you will need to get honest with yourself, don’t ball park these numbers be as specific as possible. Keep a detailed record of what you spend each month so that you can identify areas where you can cut back or save more. This will help you create a budget and stick to it. Apps such as Emma can help you track your spending and help with budgeting.

2. Make a budget: Once you have tracked your spending, use that information to create a monthly budget, this is what will set you on the correct financial path. It is important you don’t get too caught up on instant gratification. The FIYOLO mentality, will only get you so far before you look around and all of your money has been spent on clothes, vacations and miscellaneous things you can’t even remember. Be sure to include both income and expenses in your budget so that there’s no room for overspending.

3. Cut down on extras: Look for areas where you can cut back on non-essential expenses. For example, the monthly facials that you may be getting can be reduced to quarterly and substituted by investing in a good skin care routine. List the things you must have on a monthly, and everything else schedule them quarterly, or bi-annually. In our case our Kryptonite are luxury goods and vacations. To maintain these wants while still being responsible, we compromise and cut down in other ways to ensure we can continue enjoying while reaching our financial goals.

4. Automate your savings: Have multiple accounts,  whether it be at the same bank or different banks, this practice can be useful for managing different savings goals, and won’t impact your credit. “Having multiple accounts can be a way to keep yourself on task with the specific goals you’re saving for, without the risk of funds getting commingled,” says Greg McBride, CFA, Bankrate chief financial analyst. Set up automatic transfers from your checking account each month into a designated savings account.  Our multiple accounts include, an account for ”Spending”, “Bills” chequing accounts, and saving accounts which include,  “Vacation”, “Short- Term Savings”, “Home Ownership” , “Investment TFSA” etc. As soon as we are paid, the money is automatically divided into each bucket. This helps us ensure that we are saving consistently and regularly.

5. Find ways to make extra money: Consider taking on a side gig or starting an online business to increase your income. This can help you build financial security and reach your financial goals faster. Saving money requires discipline, but it doesn’t have to be difficult if you are organized and have a plan in place.

During the Covid-19 pandemic, millions of North Americans took on second jobs. The flexible remote schedules allowed individuals to manage their time more effectively and created an environment where the reclaimed time can be used to make more money. If you feel you can take on another gig, it may be a clever way for you to reach your financial goals sooner, while enjoying the luxuries you want.

Invest, Invest, Invest…. we both wish we started in our early 20’s as investing is another critical component of financial success and smart investments help you grow your wealth and can serve as a source of passive income. If you haven’t started, its never too late. Be sure to think long- term when investing as this mentality often yields the best results.

Honorable mention! 

Be smart with your career moves. Jump! The idea of being a lifer has come and gone and most young professionals see greater income increases when they jump around early in their career.  Moving careers can help you reach your financial goals a lot faster and help you advance your career sooner. Be sure to make smart moves and when leaving one position for another-ensure that the income increase wont just be gobbled up by taxes.