11 Habits Of Brilliantly Frugal Women Who Always Have Money In The Bank
Frugal women aren't cheap, they're strategic.
Look Studio | Shutterstock Some people are really good with money. Others … not so much. There are a wide variety of factors that affect attitudes about money, from the way someone was raised to their salary. When women choose to take control of their finances, they can truly become unstoppable. It’s not easy, though — so much of it is a mindset you have to learn.
Women who are brilliantly frugal always make sure they have enough money in the bank. The right amount of money depends on the person, though. Investopedia writer Tim Parker shared that having enough to cover your bills, some cash on hand and in a safe, and some extra left over for an emergency fund is sufficient, but the specific amount “depends on your financial situation.” Whether you feel like you need a modest amount or a bit extra, there are steps you can take to become a woman who always has enough money on hand.
Here are 11 habits of brilliantly frugal women who always have money in the bank:
1. They think of budgeting as a non-negotiable
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One habit of brilliantly frugal women is that they aren’t adverse to budgeting. Keeping track of your finances can be intimidating, which is why a lot of people prefer to avoid budgeting altogether. It’s less stressful if you just can’t see your stats because then you don’t have to face them, right? While this may feel true in the moment, it doesn’t do anything to help you long-term.
Yale University’s Financial Literacy program pointed out that budgeting is the single best way to make sure you’ll be able to cover your necessary expenses, plus have a little extra left over if possible. Budgeting isn’t just about how much money you’re spending, but how much you’re bringing in as well. It goes through your finances in their entirety.
Frugal women know the value of budgeting. For them, not knowing how much money they are bringing in, spending and just leaving idle in their bank account is unacceptable. They keep track of their expenses so that they can feel financially empowered and know whether they are making wise decisions.
2. They never carry a balance on their credit card
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For many, “debt” feels like a bad word in the world of finance. However, if you don’t stay on top of it, you’ll never conquer it. Smart, frugal women know this. Using a credit card for purchases is not a bad thing. In fact, it can have its benefits. NerdWallet’s Virginia C. McGuire said that credit cards are not only more secure than other forms of payment, but also come with added perks like rewards and cultivating a good credit score.
The key is that your credit card must be paid off on time. “Using credit cards does not mean going into debt,” McGuire added. “Spend money as you normally would, pay your balance in full every month and you’ll reap all the benefits of credit cards while never carrying debt or paying a penny in interest.”
Women with money in the bank know that paying with a credit card can actually be a help, not a hindrance. Using it as a form of payment to only cover what you can afford and paying off the balance actually helps your finances. It’s important to pay debt off as quickly as possible while also keeping all of your options open.
3. They save before they spend
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For many people, money is all about spending. If you have some left over after paying necessary expenses, that means you can spend it on whatever you want. Financially responsible women know that this is not the best way to handle things. While having a little money left over certainly doesn’t mean you can’t spend it, saving that money is even more important to them. They know the way to keep that money in the bank is to save up.
Writing for Bankrate, René Bennett said that saving money is about more than just being able to take a nice vacation or buy a house, although those certainly are benefits. Instead, it also allows you to create a strong emergency fund that can carry you through life’s difficulties and help you prepare for a prosperous future post-retirement.
If someone spends every last dollar they have, there will be nothing left for things they really need. Financially savvy women understand that saving is more important than instant gratification and giving themselves whatever they want in the moment. It will set them up to make big purchases down the road and be ready to face all of life’s storms.
4. They live below their means, no matter how much they make
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If you’re doing pretty well financially, it’s easy to think that you can spend a little more without any problems. And, while that may be true in some cases, responsible women understand the importance of living below their means. You never know when your circumstances could change, and you’ll need that money you were spending without a care in the world.
According to an article by Alice Garbarini Hurley for SoFi Learn, it’s not easy to live below your means, as so many people are stuck living paycheck to paycheck these days. However, having even the smallest amount of money left over at the end of the month after covering all of your bills can be hugely beneficial. “When you aren’t living paycheck to paycheck, you won’t feel that money stress,” she said.
A frugal woman knows that she doesn’t have to spend all of her money and make her life look flashy for it to be meaningful. Rather, she sees the importance of having that extra amount of money left over to save. Living a financially stable and comfortable life is worth more than showing off your wealth to anyone.
5. They take financial literacy seriously
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Some people were simply privileged to grow up in a more financially literate environment than others. If someone comes from a wealthy family, they’re more likely to understand the nuances of money. However, smart women know that if they want to handle their money responsibly, they have to understand it. This leads them to want to become financially literate in whatever form that takes for them.
Financial literacy is about more than just knowing how much you have in the bank, though. Investopedia writer Jason Fernando said, “The range of skills that fall under the umbrella of financial literacy includes household budgeting, managing debt, evaluating financial products, choosing investments, and more. Many of these skills require at least a working knowledge of key financial concepts, such as compound interest and the time value of money.”
Whether you read books, listen to podcasts, or check out articles online, there are many ways to become more financially literate, and there’s almost certainly a way you can do it based on your preferred learning style. The key to properly handling money is understanding it, and the best way to do so is through financial literacy.
6. They don't shop just to feel better
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We’ve all been there before — you have a bad day and you know the perfect pick-me-up would be that new bag, gadget, or houseware you’ve been eying. It’s easy to add it to the cart, make the purchase, and convince yourself you’ll feel better, but when it arrives in the mail, chances are the thrill will be gone. Essentially, you will have spent that money for nothing but a fleeting fancy. Frugal women don’t do this.
Instead, they know that it’s important to only spend money when they really need or want something. It’s even more important to be selective about those wants because they can change so quickly and easily. Something you simply have to have one day may not matter the next. Spending money is no way to deal with difficult emotions or circumstances. It’s just not healthy for you or your wallet.
That doesn’t mean that retail therapy doesn’t work, as anyone who has ever fallen prey to it knows. A study published in the Journal of Consumer Psychology concluded that shopping, whether done for real or just window shopping, can help improve sadness levels. Still, that doesn’t make it a healthy way to deal with problems. Retail therapy is one of the quickest ways to spend money you actually need.
7. They look for ways to bring in extra money
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Life is hard, and all of the responsibilities that come with it can feel daunting. Working a full-time job and managing other non-negotiable duties can be overwhelming. Although it may all feel like too much, women who are brilliantly frugal actively seek out ways to make some extra money. Whether this means adding on a side hustle or doing some freelance work, they’re always looking to diversify their income streams.
Forbes contributor Melissa Houston wrote about the importance of having more than one stream of income coming in. While it’s all that some people can do to hold down one job, if something were to happen to that job, they would be in an awful position. Houston recommended you build up slowly. “Each new income stream might start as a trickle, but with persistence and smart strategy, it can grow into a significant part of your financial portfolio,” she stated.
Although it’s not easy, financially savvy women don’t want to depend on one sole source of income that could easily disappear. Instead, they have multiple irons in the fire, ensuring that there is always a safety net in case the worst does happen. As Houston noted, this can not only be financially beneficial but also personally enriching.
8. They talk about money, even when it's uncomfortable
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Many people would agree that talking about money is uncomfortable. Whether it’s with a partner, parents, or children, it’s easier just to avoid those conversations. Frugal women with money in the bank don’t do this. They aren’t afraid to talk about money with whoever they need to address it with. Keeping quiet will get you nowhere, and progress doesn’t come from remaining stagnant.
Holly Simeone from Berkshire Money Management explained that having conversations with family about money is no easy feat. However, it gives you a strong support to build upon that you desperately need. “The fear of opening up about money can make it difficult to broach topics like inheritance, retirement, or the delegation of responsibilities, such as healthcare proxies,” she said. “Yet, avoiding these conversations often leads to larger issues down the line.”
If you don’t talk about money, you can’t work to understand what you and your people need and what your goals should be. You’ll be stuck in limbo. Frugal women don’t do this. They have the hard talks, so they know what they need to focus on, and so everything is kept out in the open instead of in the dark.
9. They only buy what they need — and wait for things to go on sale
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While it’s technically not possible to buy absolutely everything you need when it’s on sale, brilliantly frugal women constantly look for an opportunity to do so. When something breaks and there’s no choice but to replace it, it’s always easier to do so when you can get a good deal. Or, when there’s something new you genuinely have to have, buying it at a discount is preferable.
This is not to be confused with mindlessly shopping sales. Many people use sales as an excuse to buy whatever they want because it’s at a lower price. If you truly need something, this is a good strategy; however, buying something just to own it is never a sound financial move. Sales should be taken advantage of mindfully.
Licensed psychologist Pauline Wallin warned against shopping a sale just for the sake of doing so. “We are more motivated to avoid loss than to pursue gain,” she said. “Thus, if something is on sale for only a limited time, and if we anticipate that it might enhance our lives in some way, we feel a sense of urgency to get it now, rather than ‘lose money’ by paying more for it later.” Despite this natural human tendency, frugal women only buy what they truly need when it’s on sale, rather than purchasing everything available.
10. They think before they buy
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Similar to not buying things they don’t need just because they are on sale, financially responsible women don't make impulse purchases. Instead, they take the time to think through what it is they’re spending their money on. Just because something looks nice or is a good deal doesn’t mean they need to buy it. They understand that purchasing in the heat of the moment can lead to regret down the road and just isn’t worth it.
According to financial guru Rachel Cruze, Americans spend approximately $1,800 a year on impulsive purchases, which only makes it harder to reach their financial goals. Picking up a little something extra every time you’re at the store is not the way to pay off debt or plan for retirement. Just as with retail therapy, emotions can play a significant role in impulse buying, so Cruze suggested avoiding shopping when feeling strong emotions.
Women with financial savvy know that making impulsive purchases doesn’t help them at all. It’s always best to think things through and consider whether you’re making the right decision, especially when it comes to bigger purchases. Planning and budgeting are the best approaches. That means you can be sure you have enough for all that you need.
11. They always know their numbers
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Finally, brilliantly frugal women know their money like the back of their hand. They maintain an accurate budget, knowing exactly how much income they earn each month and how much of that money is allocated towards bills and other necessities. They know how much money they have in the bank, and they aren’t afraid of that number. Rather, they understand the value of knowing what they have and what they need.
Bank of America’s Better Money Habits program explained how easily financial numbers can change. “You may get a raise, your expenses may change or you may reach a goal and want to plan for a new one,” they pointed out. Because of this, it’s important to know your numbers and have an actual understanding of the money you have, not just some abstract figure in mind.
Keeping a budget is a good starting point, as it allows you to track your income and spending effectively. However, it’s also important to know what you have in savings, how much is in your emergency fund, and the amount of debt you owe. Shying away from these figures doesn’t help you. Instead, it just makes it harder for you to be in control of your financial situation.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
