5 Things All 20-Something Women Should Know About Money

By Randell Tiongson on August 7th, 2013

I’ve been often asked about many things related to money and I usually have answers for them. Sometimes, the questions I need to answer needs a woman’s perspective on it — something I can’t give. 

I am featuring a post written for this blog site on a topic every young woman should be concerned with and written by a young woman as well — Lianne Laroya. I believe this post should be read by every 20 something women out there, and men too!


5 Things All 20-Something Women Should Know About Money 

Being a woman, single or not, means you should still be independent about money matters.

I hate most fairy tales. Cinderella, Snow White, Sleeping Beauty, Beauty and the Beast – all of these fairly tales are spreading false beliefs and influencing the minds of little princesses growing up!

It’s not fair, right? Why are all these fairy tales advocating that we, as women, should follow our princes and practically be their love slaves and damsels in distress?

You have to wait for Prince Charming.

You have to be a submissive woman who will do everything your husband tells you to.

You won’t be complete unless you have a man managing your life for you.

No. No. And no. These thoughts couldn’t be far from the truth! Please, exorcise these from your minds right now.

The worst part is that these thoughts are applicable in the real-world as well.

You can’t manage your money wisely – you’re just a girl.

You just have to follow what your guy friends tell you about money.

You just leave everything for a guy to handle. Just sit there looking pretty and do your nails.

This shouldn’t be the case at all, right? Come on, you’re an independent, gorgeous and savvy woman.

Take note of these 5 things that all single women should know about money:

W – W is for Worth

Learn to remember the fact that you are someone who is worthy to plan for your future. There is nothing wrong with wanting to make your money work for you. It’s wonderful that you want to budget in order to achieve your financial goals.

You are not alone when you say that you want to be financially free. You know better than to let other people manage your money for you.

 Your self-worth dictates your net-worth. It’s not the other way around!

O – O is for Outcomes

You obviously know how much you earn per month, right? You’re well aware of how much your income is. But are you also tracking your outcomes?

Do you know what you do with what you have? Where does your money all go? You can only know this by tracking your outcomes objectively. Use a saving and spending plan (read: budget) to help you with this.

Here is a simple spreadsheet that you can use so that you can get started.

Track your outcomes to know what you’re working with. It can help you realize that spending less than you earn is possible.

M – M is for Marriage

Oh my gosh, don’t marry for money! Don’t even be in a relationship just because of the money involved. This is disaster.

You are not that lucky if a rich foreigner marries you. You’re not better than others if your husband is a rich heir to a multinational company. You’re not that impressive if your partner buys you insanely expensive dresses every week.

Girl, if you’re in a relationship with someone just because of money, don’t be shocked that he may start treating you as if you were his property.

E – E is for Emergencies

 That’s right – do you have your own emergency fund yet? If you don’t have one, get started with saving 3-6 months’ worth of your expenses in an account.

This is so that when you lose your job unexpectedly, when your health insurance doesn’t cover your medical bills or when you need to take a 2-week leave to take care of your sick parent, you’re covered.

Asking money from your lover isn’t an emergency back-up plan.

N – N is for Necessities

You need to know what your financial goals are so that you can plan for them. After working on your emergency fund, what do you plan to do next? Retirement? Advanced education? Condo? Car? Travel around the world when you’re 30?

You need to make your money work for you – you need to invest for financial success. For every financial goal, you should know your HR: your horizon and your risk profile.

For example, for your retirement goal:

Horizon: You’re 25 and you want to retire when you’re 60: 35 years

Risk Profile: Equity mutual funds or direct stock market investments can be right for you – they give high-returns and high-risks but you can ride through the risks since you have 35 more years.

Don’t fully rely on others to manage your money for you. You worked for this money. You earned this money.

So, you have the right and the responsibility to control your cash. Don’t be Snow White. Don’t be Belle. Don’t be Cinderella.

Be Mulan instead.

1 (1)Lianne Martha Laroya is a blogger, a nurse, an online entrepreneur & an aspiring financial advisor. She is the founder of The Wise Living, a website dedicated to educate young adults on money management and early investing without boring them to tears. Get your FREE copy of her “12-Step Guide to be a 20-SOMETHING MILLIONAIRE” book now! She loves hearing from people. Connect with her on Twitter,@MsLianneLaroya


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5 Things All 20-Something Women Should Know About Money