A few years ago, Forbes started tracking the financial progress of female millionaires and billionaires a little differently than its traditional lists of wealthy individuals around the world. By creating a separate list of self-made female millionaires, Forbes discovered a group on the rise. Over the last two years, the combined net worth of the 60 wealthiest self-made female millionaires has increased by 17 percent, which means they’re generating wealth faster than their male counterparts.
Browsing through the profiles of women such as Oprah Winfrey, Kylie Jenner, and Sheryl Sandberg, a certain pattern of financial habits begins to emerge. Here are seven financial habits worth emulating.
1. Avoiding Unnecessary Expenses
A woman who is too busy making money probably has little time to follow a new Netflix series. To this end, she won’t sign up for a membership she knows will go unused. Likewise, she knows when it’s time to cut back on expensive restaurants when times are hard.
2. Protecting Wealth and Revenue
A woman who is careful with her finances will know how to protect them. She will add business interruption provisions to her commercial insurance policy. She’ll seek advice from a financial planner. San Diego businesswomen—or anyone else who wants to grow their wealth wisely—would be smart to talk to a professional who can tell you all about asset protection trusts or other strategies for wealth preservation.
3. Networking for Success
In the previous century, the social elite attended a circuit of tea parties and other events to elevate their social status. In a similar way, today’s financially successful women look for opportunities to expand their business connections. For example, Sheryl Sandberg is one of the most visible Facebook executives because she is a relentless networker. The social network’s recent foray into virtual reality and robotics is the result of Sandberg’s extensive connections around Silicon Valley.
4. Sticking to Budgets
Quite a few women generate impressive revenue, but not all of them are able to hold on to that money. Financially successful women understand the importance of adhering to reasonable budgets.
5. Diversifying Investments
Tiffany Hsiao is an investment fund manager who specializes in Chinese companies. She owes her amazing track record to the diversity of her portfolio. Hsiao is constantly evaluating sectors so she can add different companies to her list of favorites.
6. Planning for the Future
To a young millionaire like Kylie Jenner, the future may seem like a sunny highway lined with palm trees, but the reality for this cosmetics mogul involves a substantial amount of planning. Jenner has quite a few projects in her pipeline. She knows most of them won’t work out, but she never stops making plans that line up with her ambitions.
7. Mixing Passion with Business
Jenni Helms is one of the most respected Ferrari mechanics in the United States. She also owns and manages her own line of skateboarding equipment for girls. For Helms, life is never better than when she’s working on sports cars and riding skateboards, and she’s followed her passion all the way to the bank, amassing a nice personal fortune.
No matter what gender you identify with, you can find a lot of value in the financial wisdom of successful women. Follow these habits, and you’re likely to have your own little nest egg in no time. It’s never too early to start your financial planning. San Diego residents can get professional advice on every aspect of wealth management from financial advisor Jan Gleisner. Call today at 858-337-2385 to schedule an appointment and get your finances on track.