Back to Listing

5 Things all Women Business Leaders should Consider when Planning Their Financial Future

07 August 2019

Money might make the business world go ‘round, but we can safely say that it also sets the stage for a happy and healthy future in your personal realm as well. Building lifelong wealth should be your primary goal as an aspiring careerwoman, an even though wealth can mean many things, financial wealth should be the driving force behind all future plans and dreams. After all, you want to provide your family with everything they need to enjoy their time under your roof without owing anything to anyone – a concept that to many seems more like wishful thinking nowadays.

However difficult it might seem, preparing for a safe and thriving financial future is not only doable, but quite realistic if you take the necessary action right away. As a true go-getter and a #girlboss, you have what it takes to create true financial safety and independence. Here are the steps you need to take.

Save up for your retirement

You’ve probably heard about this in the news and on social media, but younger generations and emerging business leaders are increasingly forgoing their retirement plans for the prospect of immediate financial gain and short-term stability. Apparently, many people think that they will become millionaires in their lifetime, which is not only statistically impossible, but delusional as well. Now, we’re not saying that you don’t have the makings of a millionaire, but you might not want to abandon your pension plan.

In fact, you should start investing in a comfortable retirement right away. Sure, you might think that you will be running your company well into your silver years, and you might not have any intention of giving up your throne, but you should never underestimate life’s ability to take you by surprise. There is no telling what might happen in the far future – you might even be “forced” into retirement by a medical condition. Smart businesswomen understand the importance of a pension fund, and so should you.

Find ways of creating passive income

One of the best ways to achieve true financial independence over the years (that means working as little as possible while amassing financial wealth), is to create numerous passive income sources. To achieve this, you will need to become an avid investor and find lucrative ways to increase your wealth while minimizing risks and financial liabilities. Start by finding a secure asset to invest in as soon as you are able to – such as real estate.

Real estate, for instance, is a prime example of a stable and lucrative investment, as it allows you to either flip a property for a profit, or create a recurring income source. Regardless of where you choose to invest your money, make sure that it is something that will help you speed up your fortune-building process, and allow you to “retire” while you’re still young. 

Provide financial protection for your family

Another crucial financial consideration that tends to slip by unnoticed by male and female business leaders, is the consideration of your family’s financial security during dark times. We are talking, of course, about comprehensive life insurance and its impact on your long-term safety and security, especially when it comes to unforeseen circumstances that would put your family in an undesirable financial situation. Needless to say, you mustn’t allow your family to experience a financial pitfall should something happen to you.

With a solid life insurance policy on your side, though, you can ensure that your family members will be adequately compensated in the case that you leave this world sooner than you planned. As a rational and mature businesswoman, you need to understand that life is unpredictable, which is why you need to be prepared for every eventuality. When the policy term is up, you will be able to collect the lump sum of money you’ve been saving over the years.

Eliminate or minimize your debt

It should go without saying that every financially-savvy businesswoman should minimize or ideally eliminate her debt as soon as possible. Why? Because your personal and professional future may depend on it, especially if you want to increase your borrowing potential, put your kids through college, and prevent debt from falling on your next of kin. You will need to eliminate all bad financial habits and, and of course, start budgeting your life accordingly.

Forecast your financial needs

To make all of the aforementioned goals achievable, you will need to put pen to paper and make a realistic financial plan based on your immediate needs as well as your long-term financial goals. You might be satisfied with the amount of money you’re making right now, and you might feel pretty secure with what you’ve got, but that doesn’t mean that you’ll feel that way in the future when your financial requirements start to evolve. 

Instead, think long-term and note down everything you would like to have in the future – a house, two cars, vacations, kids – and then proceed to calculate the cost of each and every goal. This will give you a bird’s eyed view of your financial situation and inspire you to start saving and investing as soon as possible.

Wrapping up

No matter if you’re an aspiring entrepreneur, or a work-at-home mom freelancing for global companies, you need to make a strong financial strategy that will set you up for a wealthy future imbued with health and happiness. Take these considerations to heart and you will have no problem creating a solid plan for a financially-stable future.