We have said that the best financial mindset is believing money is your power and you have the intellect and drive to manage it. How to make your money work for you is what you need to know.

We have also said, the basic building blocks for personal financial management are choosing your priorities from the following options:

  1. make more,
  2. spend less, or
  3. invest and make it work for you.

Let’s break these down:

Make More:

There is nothing wrong with making more, but just realize that there is usually a trade-off with your time. Sure, the Biebs makes a ridiculous amount of money, but he is also on the road more than half his life. We’re going to give you some tips on how you can earn more, but just remember that earning more doesn’t solve all your problems, because it is usually accompanied by spending more. If you can rein that in and are willing to invest the time it usually takes to roll in those big digits, then boom: Happy You.

The bottomline is that you need to pay attention to your career choices and industry if you want to make a lot of money.  A side hussle is a new thing too, or having a couple jobs to increase your earning power.  

Spend Less

Spending less is about the same as eating less. It’s not super satisfying and may even be highly annoying. You may start and stop doing it, but over time, it helps if you are trying to grow your savings and potential to invest. We’re not advocating that you become so frugal that you separate your two-ply toilet paper (no, we did not make that up), just make an effort to think about your spending and savings. Remember there are almost always a coupon code or way to save on that item that you are looking to buy.  Even if you get free shipping: score one for you.

The financial industry is busting with new businesses that want to help you out in the savings department.  We will do a full review of these soon, but some quick ones to look into: 1) Digit –hooks into your checking account, analyzes your spending and takes just as much as you can afford out to save.  2) Honey– an internet add-on that finds coupons for you as you search and buy things online. 3) Personal finance apps–most link into your accounts and tell you about your spending habits, savings goals, budget management etc.  Some help you with investments. Ones we know about (though do read the reviews) are: LearnVest, Mint, YNAB (youneedabudget.com). 4) There is a new world of digital banks that say they will save you banking fees: Simple is the one we know for now.  

Invest 

Finally, we get to what we feel is the best way to get ahead: making your money work for you. Compound interest could be one of the most powerful forces in the universe. This is where we think our generation can overcome the fear of giving money away to make money, and find a new, post-2008 way to think about investing our money, using our money to represent us in the world, and see the power of making our money work for us. Nav.it.

There are books, experts, and millions of different opinions about the right investing plans.  Financial blogging is the new big thing-there are quite a few for young women (Earnlivethrive.com; gogirlfinance.com; thedailyworth.com).  We will develop more resources that explain the different options for investing, but here is a quick summary:  Certified Financial Planners (look for fee-only if you want one!) are trained to look at your overall life goals and investment strategy–craddle to grave as they say.  Investing platforms exist so you can invest directly (without a middle wo/man): Vanguard is the most lauded one by investors looking to avoid high transaction fees (charges for the trades they make for you).  Women are getting into the game and promoting low fees or goal-oriented investing to play to the typical woman’s low risk tolerance (WorthFM, Ellevest).  Finally, employer-sponsored investments like 401ks are awesome to take advantage of–especially if your employer matches a percentage of what you invest–‘free’ money right there!!