Gone are the days when men were the primary bread winners and women cooked and tended to their children. In many countries, women are taking big strides financially and contributing significantly to family finances.
However, when it comes to finances there fundamental issues that many women face. Here we look at some of them.
Mixing money with relationships: Very often women are unable to separate money from relationships. They are more likely to lend money to friends or loved ones on the basis of relationships and bear the consequences if there is an issue with repayment. Women need to remember that it is not good sense to sacrifice your future by putting the needs of others before your own.
Lack of negotiation skills: Negotiation is a word that frightens most women. Whether it is negotiating a good deal on a home, or a salary raise with a boss – women prefer not to get into it. This becomes a crucial factor in building personal finances. In many cases, women do not make as much money as men simply because they do not ask for it.
Emotional spending: When it comes to money concerns, emotional spending is a factor many women face. Following an emotional disturbance, women love to soothe themselves by buying expensive clothes or shoes or anything that they have had their eyes on for a long time. Sometimes impulsive buys prove very expensive and women run the risk of huge credit card bills.
Lack of confidence in handling money: Many women admit that they lack the confidence when it comes to financial planning and investments. Traditionally men have saved for the future and taken big investment decisions while women have handled everyday finances and running of the household.
Women often say that they do not find it enjoyable and sometimes lack the confidence to get into financial planning and investing for the future. It is very important to get over this mind block and start by educating yourself about various financial instruments. A good place to start is by consulting with a financial advisor.