The New Year is prime time to set goals, including our financial goals. While many tend to think about general life and career goals, few really devise an approach to tackle their finances in the new year. Hence why many find themselves repeating the same negative cycles of financial loss year after year…
As working women and moms, setting appropriate and achievable financial goals is all the more important as many of us tend to manage the finances in our homes. This is without mentioning the many single working women and moms who are sole earners in their households. Furthermore, as moms, we’re often partly or entirely responsible for the financial education of our children, hence compelling us to have a solid financial vision for the future.
I know in my own experience, it has taken me quite some time to get in the habit of setting strong financial goals every year. Despite my business background and growing up in a single-parent household where money had to be carefully managed, setting financial goals didn’t always come to mind. It is with time, experience, and through conversations with fellow women that I actually started paying more attention to the importance of financial objectives in our lives and careers.
If you’re thinking of setting financial goals in the New Year, here are three I would like to suggest to your attention:
- Develop a more positive money mindset
As women often socialized to aspire to less in terms of remuneration (hello wage gap!) and money in general, we may be inclined to think of finances and money in a negative way. As a matter of fact, many may develop a scarcity mindset when it comes to money, not feeling like we deserve to be paid fairly in the workplace, or that we should not aspire to reaching higher levels in terms of position and compensation. When we add to it suffering from imposter syndrome as working women, having a positive money mindset can become a daunting prospect. Many women also suffer from being raised in families and environments where money was not discussed, let alone with the women in the family.
All these factors, and so many others, speak to the importance of mindset when it comes to setting financial goals. Developing a positive money mindset rooted in abundance instead of scarcity is the first step to achieving any desired level of financial success.
Yet, how do we go from a negative, or lukewarm money mindset at best, to a positive one? It’s a change that requires re-training our minds to think differently. One of my favorite tools to re-train my money mindset is through financial education, mostly financial books geared at women, such as “Women and Money” by Suze Orman or “Get good with money” by Tiffany Aliche.
- Understand and own your money
The second financial goal that I’d like to propose is that of understanding and owning your own money. Too often, we have no, or very little of an idea, of the ins and outs of our own money. As busy working women and mothers, we can be so caught up in our daily commitments and duties that our own money slips through the cracks. This can translate into financial debt, loss, overuse of credit and overall disastrous consequences for ourselves and our families.
This is where setting a goal to better understand, own and manage our money can make a world of difference. This means committing to a consistent practice of taking inventory of our money, being aware of and accountable for our expenses, and setting up a reasonable budget that fits our personality and lifestyle. Personal finance software such as Quicken, Mint, YNAB, or TurboTax for taxes, can help in the process.
- Plan to create generational wealth
Last but not least, the third financial goal I’d like to propose may sound like a lofty one, but is one most of us should think about when it comes to our finances. As working women and moms raising the next generation, impacting our communities and creating a legacy, our finances can serve as a powerful tool to create change and make a lasting difference. This is why it is so important to have a long-term financial view that includes planning to create generational wealth.
Generational wealth is wealth that can be passed on to future generations. Contrary to popular opinion, it is not something only reserved to the rich families and communities of this world. It is actually possible to build, starting with each and everyone of us. It can be done through investing in children’s education, in the stock market as well as in real estate. It also can be achieved by creating a business, and taking advantage of the benefits of life insurance. However, all this requires setting solid financial goals and having a clear plan.
Overall, setting financial goals is an important part of starting a new phase or season of life such as the New Year. Among these, developing a strong money mindset, understanding and owning your money and planning to create generational wealth are three of the most important goals we can set as working women and moms.
What financial goals are you setting this year?
With Gratitude,
The Corporate Sis.
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