In today`s economy, we women need to make smarter choices with our money. Unlike men, women have much more necessities, and needs when it comes to their home, personal care, and children. “Women, especially African-Americans, really believe money is there for everyone else: their husband, children, parents, pets, plants, neighbours. It is not until something dramatic happens that they realize, I left myself out of the equation.”

We need to stop wasting money and start saving it! Pay ourselves first before we pay our mortgage or rent, car note, and way before we decide to treat ourselves to the new Coach bag of the season! A little splurge every couple of months won’t hurt, especially after a new promotion, new job with higher income, or even after a rough week. But we can’t keep justifying splurges, or even little treats that eventually amount up to huge debt, that occur every pay week.

Top 3 foolish money choices to make are:

Co-signing for others – this includes your best friend from 3rd grade, your niece just entering college, and your mother. Yes, I said it, your moms…
Now if someone near and dear to you is asking you to co sign for them, there has to be a reason why. The reason is because they don’t have good credit, which can turn against you, if they miss a payment or two. Just because you say no, doesn’t mean you don’t love them, or can’t help them out in other ways, and if they can’t understand that, then too bad, too sad!

Buying costly weaves & wigs – We all know a woman’s hair is the temple of their beauty, however, there are many women that spend thousands of dollars each year for the price of beauty (to their standard) and buying weaves and paying to get it done is no exception. Now, there’s nothing wrong with wanting a new look every now and then, and women often associate a new look with a new hairstyle, and using a weave is a good substitute. However, it’s when women become dependent on a weave and never give their own hair a chance to breathe, that it becomes an issue. If you have the money, then by all means it’s your money, spend it the way you’d like, but if you’re living check to check, then think of some other options.

Using too much credit – There is really no reason why one person should have more than 2 cards at the max. Financial experts, like Suze Orman suggest one, unless you’re in a business where you can expense most of your purchases, one card is enough. Often times many people become dependent on their credit cards, and use it as a means of living, when it’s only to be used as a means of emergency. If you find that you’re becoming dependent on your credit card and can’t pay off the balance in full when the statement comes, start looking for a side hustle to pay it off. Paying off the minimum balance doesn’t do anything, and actually goes against you.

At the end of the day, “before you spend a penny, ask yourself, is this a need or a want”

A good read is `Smart Women finish Rich` By David Bach. For more info go to www.finishrich.com

Sources: November `09 and January `10 Essence Magazine