5 Ways successful women manage their finances

Author: Natasha Gabrielle

Source: The Motley Fool

Women of all ages are taking charge of their finances. If you're a woman looking to make life-changing money moves, you may seek advice on managing your finances to live a more comfortable and secure life. Making small financial changes can benefit your wallet and improve your life. Here are a few ways that successful women manage their finances.

1. They make career moves that result in higher earnings

Many successful women thrive in their careers. They put time and energy into making career moves that allow them to increase their skills and gain more experience. They're also willing to take risks that enable them to earn more money throughout their lifetimes.

One example is leaving a lower-paying job to transition to a different industry with more job opportunities and better pay. It may also look like asking for a raise or negotiating for a higher salary before accepting a new job, even if it requires an uncomfortable conversation. Change can be scary, but it can also be rewarding and allow you to reach your financial goals sooner.

2. They make strategic spending decisions

Another way successful women manage their money wisely is by making strategic spending decisions. They're not afraid to spend money -- but that doesn't mean they overspend beyond their means or rack up costly credit card debt.

Successful women also know that spending money is OK. But they make meaningful money moves when they spend their money. Many successful women understand that it can be beneficial to pay for convenience if it frees up time to earn more money.

One example is paying for a grocery delivery service. If you can earn more in the time it would take to shop and drive to and from the store, spending money on this convenience may be well worth the cost.

3. They save for emergencies

Successful women understand the importance of saving for emergencies. Many women who are committed to making financial progress have sizable emergency funds. They continue making regular contributions if they have not reached their savings goal.

You never know when an unexpected life change could disrupt your financial situation overnight, so it's wise to stash some emergency savings in the bank. Keeping your extra money in an interest-earning bank account is recommended.

4. They prioritize investing

One way that women can fight the gender pay gap is by taking steps to build wealth. Many successful women prioritize investing their money. Although investing involves risk, history has shown that it can be a powerful way to build wealth. Women who are tackling big financial goals invest their money.

One option is to contribute to a tax-advantaged account. If you can afford to invest more, review your annual contribution limits and see if you can contribute more of your earnings. If you hope to retire someday, investing can make that possible.

5. They continue to boost their financial knowledge

Another way that thriving women successfully manage their money is by continuously increasing their financial knowledge. Many women look to social media, friends, and peers to boost their knowledge so they can continue making big money moves.

This article was written by Natasha Gabrielle from The Motley Fool and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.