Financial Independence For Women: A Simple Guide

Last Updated July 20, 2024 by Davina Kelly

For many years financial independence for women took a back seat, but now things have changed. Women are working towards taking control of their finances and rightly so.

As someone who used to have debt and live paycheck to paycheck, I will share the steps I took to improve my finances, become financially independent and live life on my terms.

You are going to learn why it is important for women to be financially independent and the steps you need to take to get there.

After reading this post, you will learn how to manage your money, the things you need to prioritise and how to make your money work for you.

This post is all about financial independence for women.

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What is Financial Independence For Women?

Before we get into the meat of this post, let’s define what financial independence is. Financial independence is subjective and will differ depending on your priorities.

On a basic level financial independence for women is being able to support themselves and live the life they want without having to work a job if they don’t want to.

You can achieve this by paying off debt, living a frugal lifestyle and investing in income-generating assets like stocks or property that will make you passive income.

Financial independence for women is powerful. Whether you are single or in a relationship it is essential that you educate yourself about money and learn how to manage it effectively.

This will boost your confidence because you will know that you can support yourself, reach your goals and live your ideal lifestyle.

Now that we have gotten that out of the way, let’s get into the steps you need to take to achieve financial independence as a woman.

Financial Independence For Women: 11-Step Guide

Step 1: Change Your Mindset

If you want to become financially independent and improve your finances you need to adjust your mindset. Everything begins in the mind. Your thoughts will define your actions so you need to ensure that your thoughts are positive and aligned to the outcome you want.

Your money mindset will influence how you manage your money. If you have a scarcity mindset you need to take time to reflect and understand why. Once you have done this you can work towards shifting to an abundance mindset. It is important to believe that you can improve your relationship with money and that there is more than enough for everyone.

You can do this by reading money mindset quotes and repeating money affirmations. Reading the quotes will inspire you and repeating the affirmations will help you to shift your mindset fast.

Another thing that you can do is consume inspirational content from other women who are financially independent. While you are watching tell yourself if they can do it so can you. But don’t just say it believe it!

This is one of the things I did to help me on my journey, I watched a lot of YouTube videos of successful women and I kept telling myself I could do it too. Seeing real-life examples showed me that it was possible and kept me motivated on my journey.

Step 2: Educate Yourself About Money

Financial independence for women begins with knowledge. Knowledge is power especially when it is put into action. Make it a priority to learn about how money works, inflation, investing and anything else you don’t know about finances.

This is important because once you understand this you can begin to make informed decisions about your finances. You can do this by reading books, listening to podcasts, watching documentaries and learning from others that you trust. I will list some of my favourite resources below.

Books

Rich Dad Poor Dad
The Psychology Of Money

Podcasts

Earn Your Leisure

Shows

Your Rich Life (Netflix)

YouTube

Nischa
Jennifer Kempson
Break Your Budget

Step 3: Set Goals

When you are working towards anything in life it is important to set goals. Setting goals will give you direction, keep you motivated and let you know if you’re making progress.

You can set short-term goals like paying off debt in 12 months. Or you can set medium and long-term goals like saving for a property and planning for retirement.

When setting goals you need to ensure that they are SMART goals. They need to be specific, measurable, achievable, realistic and timely.

For example, if your goal is to save money that is a good goal but it is pretty vague. A better goal would be to save $15k in 18 months. This goal is specific and timely. To make it measurable you can include the amount you need to save each month in your budget and you could use a savings tracker to monitor your progress.

Making progress towards your goals will make you feel accomplished and it will boost your confidence. Once you prove to yourself that you can reach your goals you will want to continue challenging yourself to work towards more goals.

Step 4: Create a Budget & Stick To It

Creating and sticking to a budget is one of the best things you can do for your finances. A budget is essentially a plan for your money. It will give your money direction and save you from wondering where it went.

I know that creating a budget can seem overwhelming especially if you are not used to managing your money on a micro level. But it doesn’t need to be, you can create a budget that is simple and effective.

If we take it back to basics a budget is simply income – expenses = net income. From your net income, you can save invest and pay off debt. You can read here to learn how to create a budget step by step.

The easiest way to stick to a budget is to create one that works for you. For example, if you like to go shopping and have brunch with friends you should create room for that in your budget. This should come from what is left over from your net income balance after saving and paying off debt.

I believe in having balance, you should be able to enjoy the fruits of your labour. You can stick to a budget that will help you reach your goals without feeling miserable.

Grab my FREE printable budget planner below to create your budget

Check Your Progress

Once you have created a budget that works for you, you need to ensure that it is working. You can do this by creating a finance routine where you check your progress and update your budget for the next month.

By doing this you will be able to update your budget with any changes and include any improvements you want to make. Your budget should be flexible, things will change throughout the year so your budget should reflect those changes.

Make time once a week or biweekly to update your budget with the actual numbers. You can do this by checking your bank statement. When you are going through your numbers you should reflect and ask yourself if you are happy with your progress. If you are happy, great keep going. If not make an effort to do better next month.

I recommend doing this weekly in the beginning then once are comfortable with the process you can do it once a month.

Step 5: Pay Off Debt

If you have any consumer debt like credit cards, payday loans or car loans you should prioritise paying it off. Paying off debt can give you financial peace and free up more money to put towards your goal of being a financially independent woman.

Make a list of all the debts you have and the amount you owe. Once you have done this you can make a repayment plan and include the monthly payment amounts in your budget. Read here to learn more about how to pay off your debt.

If you can only afford to repay small amounts that is fine, don’t stress. Taking small steps towards your debt payoff goals is better than not taking any at all. Over time it will add up and you will eventually be debt free.

Step 6: Prioritise Saving

Saving is key to being a financially independent woman. Having money saved up will give you financial security and it will make you self-sufficient. It will also give you the freedom to make choices based on your preferences and comfort.

Having savings will give you the confidence to know that if any unplanned expenses come up like car repairs or dental costs you can cover them without having to worry about going into debt.

I recommend having two types of savings. One for your financial needs and another for your goals. For your financial needs, you can create sinking funds which can be used for things like your emergency fund, holidays, and birthdays. Basically any planned expenses throughout the year.

These funds will help you prepare for the upcoming costs by saving incrementally and you won’t have to pay a big chunk of money upfront and be broke the next month.

Next, you want to start saving for your medium to long-term goals such as buying a car, any investment opportunities and retirement.

I recommend using a high-interest savings account for this type of savings so that you can benefit from compound interest. This will help to increase your savings and beat inflation which is important because you don’t want your money to lose purchasing power.

Step 7: Invest Your Money

Once you have the essentials in place like a budget and savings, the next important step is investing. Investing is important in financial independence because it will allow your money to work for you and grow in value.

When you invest your money into the stock market you will benefit from compound interest and long-term growth. Investing is a long game so I recommend making it one of your long-term goals. This will help you to build wealth.

You can choose to invest in individual stocks, ETFs or property. The most important thing is to make sure that your portfolio is diversified because this will minimise risk.

If you don’t know anything about investing take the time to educate yourself about it. You can read here to learn how to invest for beginners. This will teach you everything you need to know to get started.

Step 8: Increase Your Income

A huge part of financial independence for a woman is looking at ways to increase your income. The more money you make the easier it will be to reach your goals and live life on your terms.

If you have a full-time job I recommend starting a side hustle. Having a side hustle will allow you to pursue your passions outside of work and build something for yourself. It will also boost your confidence because you will know that you don’t have to rely on others to make money.

If you don’t have any ideas of side hustles, you can think of ways to utilise the skills you already use at your full-time job. For example, If you work in marketing you can offer freelance marketing services for online businesses.

There are other ways to increase your income such as asking for a raise which you should be doing every year anyway. You work hard so you should be compensated fairly. Or you could make money online by doing things like website testing or proofreading. Read here to get some more ideas for ways to increase your income.

Step 9: Track Your Net Worth

Tracking your net worth will give you a snapshot of your finances and let you know your overall financial position. It will calculate everything you have earned, your savings, investments and expenses and show you the results for the period. This can also be a good way to keep track of everything.

Your net worth is calculated as assets – liabilities = net worth. Your assets include bank accounts, savings, investments, property and your car. Liabilities include mortgages, loans, credit cards, and any other debt.

Knowing these numbers can show you if you are doing well or if you are off track and need to make some changes. For example, if your net worth is negative that means you have more liabilities than assets and you need to prioritise changing that.

This can be a very helpful tool when you working towards financial independence because it will show you what you need to do to reach your goals. Your results will fluctuate over time, but as long as your net worth increases, you are on the right track.

You can track your net worth by creating an Excel spreadsheet with all of your numbers or you can buy a template from somewhere like Etsy.

Step 10: Learn To Negotiate

When it comes to finances most things are negotiable. Things like your salary, service provider bills, and house and car prices can all be negotiated. Don’t always take the first offer, try to negotiate it will save you money.

I know it can feel uncomfortable especially if you are not outspoken. But with practice, it will become easier. I never used to negotiate until I got serious about managing my finances, now I never take the first offer. Even if your offer is rejected you can take pride in knowing that you are getting the best possible deal.

Step 11: Invest In Yourself

“The best investment you can make is in yourself.” Warren Buffet

You are your most valuable asset so you should make time to invest in yourself. Investing in yourself will boost your confidence and self-esteem and help you to progress through life in a meaningful way. There are 3 important ways that you should invest in yourself.

Personal development

Investing in continuous learning is a powerful tool for financial independence. Personal development and personal finance go hand in hand. By learning new skills you will increase your earning potential and be able to reach your goals faster. You can do this by taking classes on Skillshare.

Skillshare is the largest online learning community with classes on everything from writing and blogging to productivity and time management.

Once you sign up you’ll get access to unlimited classes, it’s like Netflix for learning.

Sign up here and try it out FREE for 30 days.

Health

Health is wealth! You need to prioritise taking care of your health as well as your finances. Your body is a vessel and keeping it healthy is very important, if you neglect this you won’t be able to reap the benefits of financial independence.

Taking care of your health includes getting enough sleep, eating balanced meals, and moving your body. You can find simple ways to incorporate this into your daily life. For example, you can go to sleep and wake up at the same time every day, plan your meals and go for daily walks. Making this a part of your daily routine will simplify the process and make it easier to stick to.

Self-care

Prioritising your well-being and self-care is an essential part of living a healthy balanced life. If you don’t make time to take care of yourself being financially independent won’t matter because you won’t be able to enjoy it.

You can take care of yourself by making time for mindfulness activities like journaling and meditating. Plan your day so that you can manage your time effectively and get things done without feeling overwhelmed. Seek new experiences, pursue a hobby, take breaks when you need to and maintain boundaries.

Frequently Asked Questions

How Can Women Take Control Of Their Finances?

Women can take control of their finances by first understanding their current position. This will help you to identify the areas you need to work on. For example, if you are living paycheck to paycheck you will need to prioritise reducing your expenses and saving.

Once you have identified this you can create a budget that works for you and look for ways to increase your income. There are a few more steps you can take like setting goals for your finances and educating yourself about money. I have gone into more detail about each step in this post.

What Does It Mean To Be Financially Independent As a Woman?

Financial independence for women will mean different things to different women. For some, it may mean being able to take time off work and be a stay at home mom without stressing about money. For others, it may mean being able to sustain themselves financially and live life on their terms.

In its simplest form, financial independence means being able to support yourself financially without having to rely on other people.

Whatever the definition is for you financial independence does include similar things such as knowing how to manage your money well, making your money work for you and saving. These things are essential in being financially independent as a woman.

Final Thoughts

Being financially independent as a woman is powerful. It will boost your confidence and allow you to live a fulfilled life with financial peace. It will take a lot of hard work and sacrifice to get there, but the journey is worth it.

To take control of your finances as a woman you need to learn how to manage your money, educate yourself and consistently work towards your goals. Believe in yourself and your abilities you’ve got this I believe in you 🙂

I hope you have found this post helpful and now feel prepared to embark on your journey to be financially independent. What are some of the steps you will take to get there?