Change is not easy, especially when trying to change something about ourselves. And Let’s be honest: real change is hard. Especially when it comes to money. Most of us don’t wake up one random Tuesday thinking, “You know what sounds fun? Completely reworking my finances.” There’s usually a trigger.
Maybe you lost a job and realized your emergency fund isn’t as “emergency-ready” as you thought. Maybe you checked your credit card balance and immediately needed a lie-down. Or maybe you’re simply at a point in life where you’re thinking, I want to feel more secure than this.
Before you jump into budgets, spreadsheets, and “10 steps to financial freedom,” there’s one crucial phase that often gets skipped: financial awareness. This is the part where you understand where you are, how you got here, and what you actually want — so the changes you make actually last.
Understand Your Relationship With Money to Gain Clarity
Before you tackle bank accounts or investment portfolios, take a step back and reflect on your feelings about money. Do you avoid looking at your statements? Does thinking about your finances make you anxious or resentful? Or do you feel like money is something you’re undeserving of? There’s no wrong answer, but honesty is key.
Try a Simple SWOT Analysis for Your Finances
A SWOT analysis can help you take a structured look at your financial life. Here’s a simple way to break it down:
- Strengths: What are you doing well? Examples: paying bills on time, consistent saving, or having an emergency fund.
- Weaknesses: Where do you struggle? Examples: overspending, avoiding financial planning, or inconsistent saving habits.
- Opportunities: What could improve with a little focus? Examples: earning extra income, investing, or refinancing high-interest debt.
- Threats: What could derail your progress? Examples: job instability, unexpected expenses, or lifestyle creep.
This high-level reflection can give you a clear picture of where you are today and lay the foundation for informed decisions about the future.
Define What Wealth Means to You to Strengthen Your Saving Habits
Before worrying about how much to save or which accounts to use, it’s important to clarify why saving matters to you personally. Surface-level goals like buying a home or retiring comfortably are a start, but real motivation comes from understanding what wealth means for your life.
For many women, wealth isn’t just numbers in a bank account — it’s freedom. Freedom to make choices without stress, to support loved ones, to pursue passions, or to leave situations that don’t serve you. Take time to reflect on questions such as: What does financial freedom look like for me? What excites me about having more resources? What barriers might be holding me back?
Once your “why” is clear, the “how” of saving (whether automating transfers, building an emergency fund, or choosing investment accounts) becomes much easier to manage. Motivation rooted in purpose makes sticking to your saving plan far more achievable.
Know Your Credit Score and How Lenders See You
Credit can feel intimidating, but understanding your credit score is essential for improving your finances. Your credit affects everything from loan approvals to interest rates and even insurance premiums. By keeping tabs on your credit, you’re positioning yourself to make strategic financial moves when opportunities arise.
Your credit score is primarily influenced by:
- Payment history: Are bills paid on time?
- Credit utilization: How much of your credit limit are you using?
- Length of credit history: Do you have long-standing accounts?
- Credit mix: Do you have a balance of cards and installment loans?
- Recent inquiries: Have you applied for multiple accounts recently?
Regularly checking your score through free apps can help you spot mistakes, track improvements, and identify areas for adjustment. And don’t forget to connect this back to your goals: whether you’re planning a home purchase, a car loan, or starting a business, understanding your credit picture lets you make informed decisions now to secure better terms later.
Examine Your Spending Habits and Triggers for Smarter Money Management
Managing your money isn’t only about saving more — it’s about spending in alignment with your values and goals. Awareness of your spending habits helps you identify patterns and triggers, giving you control over where your money goes rather than letting it control you.
Reflect on questions like: Do you automate savings? Do you plan for big purchases? Do you allow yourself “fun money” without guilt? Then consider triggers that lead to unplanned spending — stress, social influence, or certain environments. By noticing these patterns, you can make small but powerful adjustments. Examples include meal planning to prevent impulse grocery purchases, unsubscribing from tempting marketing emails, or setting boundaries around shopping with friends.
Why Financial Awareness Is the Step You Can’t Skip
When you’re motivated to improve your finances, it’s tempting to jump straight into tactics: new budgets, apps, or investment strategies. But without awareness, those plans often falter. Taking time to understand your relationship with money, define what wealth means to you, monitor your credit, and evaluate your spending habits ensures you’re building a plan that works — not one that feels like punishment.
This is how you create financial strategies that stick. You get clarity, control, and confidence. And the best part? You’re building a financial life that supports you — not the other way around.
The statements and opinions made in this article are for general informational purposes only and are not intended to provide specific financial advice or recommendations for any individual or any specific security or investment product. The views and opinions reflected in this article are subject to change at any time without notice. For advice specific to you and your situation, please speak with your Financial Advisor.
