Consider this scenario:

Aisha is 36, a single professional, who works in the HR department at a management consulting firm. She lives on her own in a nice rented apartment in a really great neighbourhood, and recently purchased a new mid-range vehicle. Aisha been able to splurge on designer pieces, especially handbags and shoes, and adds to her enviable wardrobe regularly. She also has a standing (bi-)weekly appointment at the beauty salon to ensure that her hair and nails remain ‘on fleek’. She has a great gaggle of girlfriends, who are also professionals and doing well, and a couple of times a month they all get together for drinks, lunch, or even brunch.

Aisha has a great life, but at the end of every month, she get into a bit of panic as to whether she will be able to cover all of her bills. Recently, she could just about pay the minimum payment on her credit card, and knows that she needs to figure out how to get out of the hole she is digging. But she is not quite ready to make the tough decisions and sacrifices she will need to make. She thought she would have been married by now and hubby would not only be managing their finances, but also at the very least, be contributing to some of the expenses she is currently carrying alone.

Most us might not be exactly like Aisha, but we can relate. We might be living comfortably, and from time to time can splurge. But if someone just scratches the surface, our finances are in fact in a precarious position. Any additional or foreseen expenses, such as when Aisha had to take her vehicle to the car dealership for a routine maintenance service, puts us deeper in the red.

A possible solution to our problem is to earn more money, but in the long run, that is likely to make matters worse. We have all known someone who was bit hard-up, struggling to make ends meet, who got a bump up in income, be it from a promotion or a side hustle, but still seems in no better position financially. All too often, what happens is that people’s lifestyle expands to their income; and so almost paradoxically, people can be even more in debt the more money they’re earning.

 

Improving our financial literacy

In this the 21st century, we, at Journey To Growth are surprised that the stereotype of women being poor in managing money still persists. Unfortunately, and to varying degrees, it remains true, and so many women end up in a similar predicament to Aisha. Although we women might be independent, living well and earning their own money, there is a sense that it is all a house of cards that can come tumbling down at any moment.

At Journey To Growth, we are of the view that it is critical that women improve our financial literacy – both for themselves and their families – and that a two-pronged approach is necessary. First, we ought to understand our attitude towards money and wealth, with a view to re-writing our internal script. If that is not adjusted, we will continue to engage is sabotaging behaviours, and wonder why we’re still broke!

Second, there will be a focus on providing knowledge and tools. So many of us women do not have a basic understand of money health and money management. These skills are not necessarily taught at school or even in most homes, and like Aisha, we might expect our husband or partner to take the lead on that front.

If you are single, the full brunt of that responsibility falls on you, which not only includes managing your day-to-day living, but also ensuring that adequate plans are in place for your future. For those who are in a committed relationship, it is still ill-advised to not be knowledgeable about the household’s finances. You don’t know what may happen in the future, and so ensuring that, among other things, you know how the family’s money is being spent, the debt that is being carried, along with any financial commitments that have been made, is critical. Moreover, although one might be inclined to have your partner manage the family’s finances, he or she might be just as bad, if not worse, than you are at money management. So knowledge is key.

 

Finally, we welcome your financial health-related questions and concerns that you would like us to address. Send us a note at Get in touch with us, or share with the Community.

You are not alone.

 

 

Image: Nattanan Kanchanaprat (Pixabay)