Top 5 Strategies for Financial Empowerment in 2024

Posted on Apr 16, 2024 at 11:04 PM

There is a difference between financial empowerment and the possession of wealth & a large bank balance. Although some people have wealth, they still need appropriate financial empowerment.

For example, their monthly salary may be $20,000, and their monthly expense may be approximately $20,000. As a result, they need to achieve what is called financial empowerment. Well, here, what is the solution, in your opinion?!

The solution is simply as follows: 

Realizing and properly understanding economic financial empowerment means developing a suitable financial plan for all your monthly expenses that will help you achieve your future goals. In this article, we sought to cover the benefits of financial empowerment and effective financial strategies for achieving it in everyone's life.

What is the Importance of Financial Empowerment?

Financial empowerment aims to: 

1. Significantly benefiting both individuals and society. 2. Improvement of the financial situation in general. 

Here is a list of the most important of these benefits:

1. Improve stability and financial control over commitments in different aspects of life.

2. Improve the ability to deal with emergencies and find unique solutions.

3. Provide and support public awareness of the importance of financial responsibility to youth.

4. Reduce debt for people with limited income. It can also be eliminated.

5. Increasing the possibility of supporting institutions or organisations to implement large economic projects.

6. Improving the emotional well-being of all members of society (including the elderly).

What are the Steps for Financial Empowerment?

Some strategies are needed to strengthen and enable the personal economy. Here are the top ones:

• Set financial goals clearly

Setting "specific" goals can help prepare you to empower yourself financially. So, make your economic goals clear in the short and long term. Ensure that these goals achieve the principle of financial inclusion and the famous SMART rule (a specific or clear goal that is measurable, achievable, realistic, and time-bound).

You can use a piece of paper and a pen to mark the economic issues that are most important to you. Sometimes, you may ignore your long-term goals to achieve the short ones. However, try to shorten this period because it takes you far from empowering and achieving your goal.

• Change your expectations and decisions about money

Society's feelings about money are often complex and challenging to understand. Behavioral economics always points out that most financial decisions are made by emotion and later justified by logic. This is what keeps most people from making the best economic and financial decisions in their lives. Consequently, economic empowerment has yet to be achieved.

The solution, then, is to develop and change the way we think about the financial sector and not expect that money will come in the future! You must learn about sustainable and real ways to earn money, take the appropriate time to develop strategies for spending and investing it in the right place, and take advantage of any opportunity that may achieve financial gain. This method contributes greatly to the development of your financial sector.

• Create an appropriate financial budget 

Create a well-thought-out financial plan for your monthly spending; the most important thing is your commitment to it, especially during long periods. This planner provides you with knowledge and information about where the money goes, where it comes from, and how much you should save each month. The planner is considered one of the critical elements of accounting and financial empowerment because it is the map or compass to achieve the predetermined economy but on the condition of "unlimited commitment".

In general, the higher your revenues, the higher your expenses. Therefore, you should set an accurate budget to control costs and determine how to reduce them, regardless of the amount of money you earn per month. The right plan plays a significant role in making the perfect decisions, allowing you to stay focused on achieving your goals.

Remember to consider your savings as the main bill that must be paid monthly. This method supports and changes your behaviour toward expenses and simplifies work, empowering you financially.

• Study financial management well

As Robert Kiyosaki, the famous businessman and author of the book Rich Dad Poor Dad, explains, most schools and universities do not teach their students the correct management of money but rather only what they need during their studies. They also teach them the basics of money management without following the principle of promoting financial inclusion and detailing all financial concepts in the education process.

Fortunately, in the age of technology, you can study and obtain accounting skills to work in the financial management and accounting sector easily and correctly with free programs and methods, such as YouTube channels, podcasts, or blogs. So it's not too late! You can start at any time. What is important is that you start properly empowering yourself financially and economically.

Sometimes, you must take specialised training courses such as Finance & Budgeting Courses in Dubai. This is to study advanced economic concepts and methods.

• Track your progress over time

You now have specific financial goals and a better financial outlook. It is, therefore, necessary to track and manage what you do over time to check your approach toward financial empowerment and the vision for the future that you have set. This is to determine what you need to fix and improve.

Developing key performance indicators (KPIs) can help you achieve this. These indicators will help you assess the extent of your commitment to the strategy you set in the previous steps and develop and enable it in the future.

For example, if you have an annual plan to save an amount of X, you should save an amount of Y per month. If you save less than Y in one month, you have to make improvements for the next month to make up for the missing amount.

In Conclusion,

What we mentioned above is one of the top benefits of financial empowerment and the five key steps to achieving it. But of course, you have to ensure that economic and financial empowerment is a deep concept. 

So, to achieve it, you must do a lot of studies and attend training courses that save you a lot of time and simplify the path towards financial empowerment for organisations and individuals.