Women In Business

Money mistakes successful businesswomen never make

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Money mistakes are a common glitch in most people’s lives.  Yes, many of us find it’s incredibly easy to splurge at sales on something we never use, or forget the impact that major life events could have on our future bank accounts.

But there are also small ongoing mistakes many of us make, that add up to big drains when calculated over time. However, successful businesswomen are always sure to avoid such mistakes.

Instead these women focus on using their money to grow their success, because money mistakes have the potential to have a long lasting impact on both your professional and personal life.

 

Not having a budget

In order to be a successful businesswoman you need to keep track of where you are spending your money at all times.

Having a budget is a necessity for businesswomen as it allows them to determine how much of their money they are spending on essential expenses and how much on lifestyle choices.

This way you can determine where it would be best to cut down your expenses and save more money, instead of not knowing where it is going at all.

Spending money trying to impress others

When picturing successful and wealthy businesswomen, it’s common for people to picture women with a closet full of expensive designer clothes, shoes and other luxuries.

But just because you can afford all of these things, it doesn’t mean you should spend your money on them because of a stereotype.

Instead, work on saving your money for the things that will help you achieve your goals and continue your success, because splurging on unnecessary things will only serve to weaken it.

Overspending

If you find yourself preparing for something such as a business event or party the worst thing you can do is overspend.

This applies to everything you spend your money on; make sure that you have bought everything you need but nothing unnecessary as it only wastes both your time and money and you can’t afford to lose either if you’re serious about becoming a successful businesswoman.

Not saving

While you will use each paycheck for things such as bills, groceries etc. you also need to make sure that you’re putting some money away into a separate savings account.

No matter how small the amount may seem at the time, eventually your savings account will grow into one you can use in emergencies should you ever need to.

As a businesswoman you need to ensure you’re being smart with your money and saving some of it, no matter the amount, is always a good thing.

Not adjusting to life events

It’s inevitable that at some point in time you will be forced to deal with an event that completely changes your life.  It could be a change in careers, homes or going through a divorce… or even the arrival of a baby.

That is why as a successful businesswoman you always need to have a plan when it comes to your finances, no matter the circumstances.

Keep in mind that while you may be able to adjust to a big life event quickly, your bank account won’t unless you sit down and organize it to suit your new lifestyle – and this will work better if you are prepared with a money ‘buffer zone’ in the first place as outlined in tip 4.

Spending money on unnecessary fees

It’s always important to determine what you spend most of your money on and how you can reign in unnecessary expenditure.

Spending money on fees is something many people do, but successful businesswomen know how to avoid this.

From late payment fees to high interest credit cards, it is incredibly easy to find yourself having to spend your money on fees you could have easily avoided, and if you want to be a successful businesswoman you most definitely should.

Ignoring loan repayments

Most people, even businesswomen, will at some point in their life have a loan they need to repay.

However, the difference between most people and successful businesswomen is the latter don’t push their loan repayments aside.

Instead, they make a plan to make regular repayments in order to completely pay off their loan as soon as possible in order to continue their career without the worry of loan repayments hanging over their head.

Something else you could look into if you want to be a successful businesswoman is an offset account.

This is an account that can be linked to your home loan or another loan you may have and instead of paying large amounts of interests, the amount in your offset account will be used to decrease your loan amount.

This could potentially save you hundreds of thousands of dollars throughout your life.

Buying a house they can’t afford

Buying a house is possibly the biggest purchase you will ever make, and as a result it is not one you should take lightly.

When buying a house you need to make sure it is one you can truly afford and is worth it.

You need to be sure it is one you can see yourself living in and one that you know could improve in value, because the money that will go into buying a house is too much to not be taken seriously.

Even if the house you purchase is at first the worst house in a popular street, it is already much better than having it be the best house in the worst street.

This is because you can always improve it and transform it into a house everyone will want to own, so if you ever decide you want to sell it you are almost guaranteed to receive more money than you bought the house for.

Not negotiating their salary

One of the most common traits of successful businesswomen is their confidence in themselves and their abilities.

They know what they are worth and are not afraid to negotiate their salary and fight for more pay and benefits should they feel they are deserving of them.

As a businesswoman you cannot be afraid to advocate for yourself.

If you believe what you’re being paid isn’t reflective of all your efforts than you should raise these concerns with your employer and try to come to an agreement you are both happy with.

Relying too much on credit cards

Relying on credit cards is a common mistake people make early on in their adult lives and it’s easy to see why.

You don’t even think about how much money you’re spending at the time but soon enough you’re forced to, and often times it’s a frightening reality.

Not only do you have to pay for everything charged to your credit card, but you will also be charged interest that will often increase your bill to a startling amount.

This is why avoiding credit cards as much as possible is an idea you need to seriously consider as it avoids you spending more money than you actually have.

And if you do use them, try to clear the entire debt at the end of each month so you can avoid the interest fees.

Shopping to influence your mood

Shopping in order to boost their mood is something many women do as it’s almost guaranteed to work.

However, its something that successful businesswomen will never do as it is simply impractical to shop every time you’ve had a bad day.

Instead you should focus on trying to find a way to fix whatever situation is causing you distress, or simply find an alternative way to boost your mood such as exercise.

This way not only are you saving money but you’re improving your health as well, something else you need to do in order to ensure you have a long and successful career.

Ultimately, while several of the money mistakes outlined above are ones people make quite often, you will never find a successful businesswoman making them if she can avoid it.

This is because the successful businesswoman knows how to manage her money and spend it in a way that will help her reach her goals and further improve her career. And that is exactly what you should aim to do with your own money.

 

About Natalie Cupac

Natalie Cupac Journalist & Features Writer for The Business Woman, Natalie Cupac is studying a double degree of Journalism and International Studies and has previously worked for Pacific Magazines

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