Do you think your wife is a better manager of your money?
Earning money and managing money are two different skills. Everyone needs to know this difference. There are plenty of examples where many good earners have ruined their financial lives sheer due to the lack of their money management skills.
The question is do you have that money management skills?
If you think you need some more insight, who can teach you better than women who have managed money for centuries.
Men and women are different in their money management style and approach.
“Anyone who stops learning is old, whether at twenty or eighty.” Henry Ford
You can learn from anywhere and at any age. Here is a list what can you learn about the money management from the Women.
- Women are Less Risk Taker
Men usually as earning members of the family are more risk taker. Since most of the women don’t earn, they are cautious about money.
There is research which found women have less testosterone than men. This helps them because they are less reckless. Source: Meredith Jones, author of the new book Women of the Street.
“On average the most active traders had the poorest results, while those that traded the least earned the highest returns,” writes Nobel laureate Daniel Kahneman in his best-selling book Thinking, Fast and Slow.
This makes them take less risk with money: whether they spend or invest. Earning men members take more risk than earning women member.
Lessons: Take less risk, take a calculated risk and manage your risk.
Handpicked related Post: 5 huge risks of remaining uninsured
- Men are Over Confident
Men are usually over-confident about their money management skills. They usually mistake it with their money earning skills. Money earning and money management both are different skills.
It is always better to have cautions approach with money than to have an over-confident approach. When the risk is high, overconfidence kills.
Risk-taking mindset coupled with overconfidence is dangerous. As the saying goes, Trust in God but lock your car, in the case of money, be confident but know your capacity and bottom.
Lessons: Be confident but know the downside.
- Women are Meticulous
They are meticulous in managing their money. If you don’t agree, visit any vegetable markets and ask any vendor.
You will also learn by accompanying with a woman to the market. The way they negotiate and are concerned with the prices is worth a lesson in saving money.
In the case of money management, savers always win.
Lessons: Money saved is money earned.
Handpicked related post: Why is maintaining books of accounts important for salaried employees?
- Better Budget Management Skills
Since ages women have, by their role in the family, managed earned money. They were answerable too about their money spend.
They know since they don’t and can’t earn, saving money is an ideal monetary contribution to the family.
When it comes to money management it’s an advantage.
This social equations since ages have made women better managers of the budget.
Lesson: Make a realistic budget and manage it well.
Money management is very important because you are spending your life to earn it. With better-managed money, you can live the life of your dream.
“The great aim of education is not knowledge but action.” Herbert Spencer
Now you are now equipped to better manage your money. Act now, be money savvy.
You may like to listen: 6 Podcasts to Make You Financially Smarter