I strongly believe that having savings will help you to be more successful. Whether you class it as your rainy-day fund, your emergency fund or a F*ck off Fund (as Jessica Bennett calls it in The Feminist Fight Club), the fact is every woman should have a savings pot.
We all know that savings are sensible, but there are specific reasons why having access to money (even if you don’t spend it) will help you to be successful.
1) You can invest in your personal development
Whilst there are many free ways (podcasts, blogs, YouTube videos) that you can focus on your personal development the fact is that having savings will allow you to be able to invest more in your personal development. Have you ever noticed that successful people tend to speak more about focus they put on their personal development than the average person? That is because successful people know that personal development should be ongoing and in order to continue to perform at the best of their abilities.
This investing in yourself could be anything from spending £10 on a book, becoming a member of a book club like PropelHer’s Book Club, attending a conference, signing up for a course or joining a mastermind that costs thousands of pounds.
Having savings means you are able to invest in your personal development as appropriate. Ideally, you should set aside a personal development budget and ensure either monthly, quarterly or annually you commit to something that will help you grow and move forward.
2) You will have more freedom to do the work you want to do
If you love the work you do then it is likely that you will perform better and in the long-run be more successful in that role or industry. Now maybe you are an employee. In this case having savings will give you the flexibility to not necessarily have to take the most well-paid job, but be able to make an informed decision that considers the role, the pay and any other factors. On the other hand, if you are an entrepreneur then having savings will enable you to be more choosy about the clients you work with or type of work you take on. Again the idea is that money gives you freedom and flexibility to think less about the money coming in and more about your overall experience, which in the long-term should help you to be more successful.
3) You will be able to pay to network with richer people
Wealth and success necessarily go together, but there is a strong connection. I’m a big believer that in order to be successful you need to build a strong network around you. You can find out more about building a network you love by reading Top Tips for Growing a Network You Love
Some ways to build your network are free but some will take money, especially if you want to expose yourself to richer people. This may mean paying to go to paid events rather than free events. It may be that you pay for people to meet you over coffee, a drink or dinner. Or another way to network with richer people is buy becoming a member of a private members’ club.
Private members’ clubs are very popular in London but are in major cities around the world. In order to access a club, you need to become a member, via paying, and this means the calibre of members is of a certain standard. Some private members’ clubs will have specific focuses such as an industry so you can be highly targeted if you would like.
As I mentioned at the beginning of this point, networking with rich people won’t necessarily make your more successful, but being around richer people will hopefully help you to improve your financial knowledge, as well as be exposed to opportunities you might not encounter otherwise.
4) Savings will help you make choices from a rational place rather than an emotional place
For many women having savings helps them to feel more secure. When you feel secure you will make decisions from a better place. Very much like point 2 if you don’t have savings then you are likely to chase money or place higher importance on the financial implications of the decision rather than all things considered equally.
Successful people 1, 3 and 5 years in advance. Having savings will enable you to make decisions that might be difficult to make financially now, but over the long-term will be more beneficial. Your savings will hopefully allow you to approach your decision making with a rational perspective rather than being led by your emotions.
