Ask a CPA is our periodic column addressing accounting and financial questions for working women and moms. Got an accounting or financial-related question? Please email us at corporate@thecorporatesister.com
Q: I often feel defeated and disempowered in my personal finances, as if I were trapped. How can I be more empowered and create more freedom in my finances?
A: Great question! And you’re definitely not the only one to wonder about creating more freedom in your finances. Increased financial freedom not only allows you more peace of mind, it also helps you have a better quality of life, and create a solid financial legacy for yourself and your family. Not having to worry about your finances, and instead working to build wealth can be a rewarding experience in and of itself. For working women and moms, many of whom are disadvantaged when it comes to wealth-building and financial freedom, this can also mean increased time, opportunities and better work-life balance.
Here are 3 tips that may help:
- Have a vision for your finances
Having a vision for your finances is the first step to wiring your mindset towards having more ownership and freedom in your finances. What does your ideal financial situation look like? How much money would you like to see in your savings account? How would you restructure your expenses?
However, it’s not enough to just have a vision for your finances. Writing down your financial vision is a powerful way to solidify it into a concrete plan and turn it into reality. It can be as simple as journaling about it, creating a basic budget, and/or setting up milestones to reach.
- Set up a system
Creating freedom in your finances also involves setting up an effective system allowing you to focus on your main financial goals. This is especially important for us as working women and moms carrying so many responsibilities and commitments.
An effective system can start as simply as reminders, a monthly budget, or a financial app. It can also take the form of automating your monthly expense payments, hiring a financial advisor, or and/or devising an elaborate financial strategy for yourself and loved ones.
- Learn through the process
Last but not least, gaining more freedom in your finances largely comes from educating yourself. Learning about the many options at your disposal to make the best out of your money puts you at a distinct advantage. Whether you choose to take classes, read books or learn on social media, the goal is to be knowledgeable about the best options for you.
Using dedicated resources like Certified Public Accountants, or financial advisors can also further your education in a more direct way. Working with a financial professional can not only help you solidify your finances, but also help you grow through the process.
Overall, creating more freedom in your financial situation is far from being a luxury. In a world threatened by economic instability, having a vision for your finances, setting up an adequate system, and learning through the process are effective ways to be freer when it comes to your financial situation.
Got an accounting or financial-related question? Please email us at corporate@thecorporatesister.com
The Corporate Sister.
