Strategic financial management for women entrepreneur

Due to the multiple roles that women play on a daily basis, as household managers, consumers or as business owners, sound financial management is extremely important. Here are some tips on how to achieve this.

Prepare a monthly budget: Plan your expenses for a given period and monitor if you have spent more than you originally planned. At the end of the month, make the necessary adjustments to optimize it; daily follow-up can help you save up to 15%.

Use different accounts for different purposes: The secret to generating wealth is money management. One of the ways is to divide the money into specific accounts for specific purposes and relate each account to an area of your life – and to use it only for that purpose. Each time you receive money, assign a percentage to each account. Invest instead of saving: Money is too volatile to focus only on saving. Aim to accumulate to invest, generate returns and more income. It is good to be an active investor and, above all, to understand the chosen method.

Prepare for contingencies: Seek to protect yourself through insurance on your business, life and other assets that can be adversely affected and impact your wealth. Create an emergency fund (equivalent to three to six months of your income) in order to face any possible problems relating to work, production or personal situations that may arise.

Increase added value: The more value you generate, the higher the price that your client will be willing to pay for the product or service that you are offering. Investing in yourself to grow and create more capabilities is the best long-term investment where you can accumulate experience, training and continue to be updated.

Think about tomorrow: It is never too early or too late to design a retirement and savings plan. On average, women have a higher life expectancy than men and should think about how they will manage the costs.

Build and consolidate your credit history: You may not have considered this yet, but obtaining credit to open a business, purchase a house or a car, or even to have your own credit card you have to have a good, responsible and timely payment history.