Budget Basics
Women and Money
When it comes to women and money, the news can be gloomy. We live longer, we earn less, and are less secure in retirement. But the news isn’t all bad, because women can also be terrific budgeters, investors, savers and entrepreneurs.
Take women business owners as an example. According to a study conducted by professor Karen Hughes of the University of Alberta cited by Women Entrepreneurs of Canada (www.wec.ca):
- Women owned businesses are contributing over $18-billion to the Canadian economy.
- There are now over 800,000 women owned businesses in Canada.
- 85% of women entrepreneurs are satisfied with their jobs in comparison to 68% of paid employees.
- Women are opening 4 out of 5 new businesses and have tripled the rate at which they have opened those businesses over the last 20 years.
Sure, the deck may be stacked against women a bit. But with some planning, hard work and a willingness to learn, women can be financially successful and independent. Here’s where to start:
Be A Smart Spender
Women:
- Influence 90% of home-buying decisions
- Spend 80% of Canada’s money
- Source Financial Post
If you want to be financially successful, the first thing you have to tackle is the family budget. Millionaire women are good budgeters and they are frugal. (And frugal, by the way, means wise with money, not necessarily a spendthrift.)
You need to know where your money is going. If you haven’t done so already, start tracking your spending and create a budget. If you have a family, get them involved in creating it. Visit the Learning Center at www.consolidatedcredit.ca for a couple of helpful booklets on budgeting.
Once you’ve created your budget and started tracking your expenses, you’ll want to find ways to make you get the most for your money. Consolidated also offers helpful brochures on spending, whether it’s saving money on groceries or the heating bill. The less you spend, the more you have to save and invest. So don’t be afraid to clip coupons or get your kids to turn the lights out when they leave a room. Every bit can help!
Earn Your Worth
If you are going to work for someone else, it’s important to research pay rates for the type of work you do (www.salary.com), to negotiate your starting salary, and to develop the skills you need to ask for and get a raise. If you don’t, you not only shortchange yourself in your current job, but also in terms of your lifetime earnings. In fact, statistics show that women who consistently negotiate their salary increases have been found to earn at least $1 million more during their careers than women who don't.
If you’re a mom looking to balance career and family, check out Home Based Working Moms Canada (www.hbwmcanada.com). If you’re looking for a great work environment with benefits or the opportunity for advancement, The Great Places to Work institute also publishes an annual list of the 50 Best Companies to Work For (www.greatplacestowork.com/best/list-ca.htm). Finally, if your company offers tuition reimbursement, take advantage of it and take classes to increase your salary and marketability.
Perhaps you just can’t seem to find a job that gives you the flexibility or opportunity you want. Then starting your own business may be your ticket to financial independence. It isn’t always easy, but you can often test the waters by starting a small business part-time or from home, and grow at your own pace. A terrific resource for small business advice is the Canadian government, which provides free business planning and consulting advice. Visit www.canadabusiness.ca for more information. Be very careful, though, about work at home opportunities that promise lots of money for little work – especially if they also require a large upfront investment.
