7 unique habits of women who are completely financially independent, according to psychology

I’ve always been fascinated by the concept of financial independence.

But for a long time, it seemed like a distant dream.

A few years back, I was just another guy trying to make ends meet. My financial health was in shambles. It felt like I was constantly running on a hamster wheel, never quite catching up.

Then, I started studying financially independent women and their habits. It was like a light bulb switched on in my mind.

In this article, I’m going to share with you the 7 unique habits of women who are completely financially independent, according to psychology. These habits transformed my financial life, and I believe they can do the same for you.

Let’s dive in.

1) They live within their means

Sounds obvious, right? But you’d be surprised at how many of us struggle with this simple concept. It’s easy to fall into the trap of lifestyle inflation – as your income goes up, so do your expenses.

But the women I studied were different. No matter how much they earned, they always spent less than what they made.

They understood the importance of saving and investing their money, rather than blowing it on things they didn’t need. They prioritized financial freedom over material possessions.

This doesn’t mean they lived a life of deprivation – far from it. They simply made conscious choices about where to spend their money, focusing on quality over quantity.

Understand where your money is going and make adjustments as needed. This is the first step towards living within your means and creating a more secure financial future.

2) They cultivate a growth mindset

The second habit I noticed among financially independent women is that they all share a growth mindset. This concept was introduced by psychologist Carol Dweck, who explained that “In a growth mindset, people believe that their most basic abilities can be developed through dedication and hard work—brains and talent are just the starting point.”

I can personally attest to the power of this habit. A few years back, I found myself struggling with my finances, feeling stuck and unsure of how to improve my situation. But once I started to embrace a growth mindset, things began to change.

Instead of seeing my financial struggles as a personal failure, I started viewing them as opportunities for growth and learning. I stopped beating myself up for not knowing everything about personal finance, and instead, dedicated myself to learning more.

I read books, attended workshops, spoke to financial advisors – anything I could do to expand my knowledge. And slowly but surely, I started making better financial decisions.

Cultivating a growth mindset isn’t always easy – it requires patience, perseverance, and a willingness to step outside of your comfort zone. But the rewards are well worth it.

3) They set clear financial goals

For years, I just went with the flow when it came to money. I paid my bills, saved a little here and there, but I didn’t have any real plan in place.

That all changed when I started setting specific financial goals. I wanted to pay off my student loans, save for a down payment on a house, and invest in my retirement. Having these clear goals gave me a sense of direction and purpose.

Interestingly, I found that having specific financial goals actually made spending less painful. When I was tempted to make an impulsive purchase, I would think about my goals and ask myself if that purchase was really worth delaying my dreams.

Setting clear financial goals isn’t just about the end result, it’s about the journey. It’s about making conscious decisions each day that bring you closer to your dreams.

4) They prioritize financial education

One thing I’ve noticed among financially independent women is that they prioritize financial education. They understand that knowledge is power, especially when it comes to managing money.

During my journey towards financial independence, I made it a point to educate myself about personal finance. I read books, listened to podcasts, and even took online courses. And the more I learned, the more confident I became in making financial decisions.

This habit is backed by research as well. A study conducted by the TIAA Institute found that individuals with a high level of financial literacy are more likely to plan for retirement and have an emergency fund, both of which are key components of financial independence.

The study concludes, “Financial literacy is positively related to beneficial financial behaviors and inversely related to behaviors that are generally considered problematic”.

Knowledge really is power. The more you understand about money management, the better equipped you’ll be to make sound financial decisions and work towards your goals. So start prioritizing your financial education today – your future self will thank you.

5) They understand the power of passive income

Financially independent women understand the power of passive income. This means they make money while they sleep, vacation, or spend time with their families.

Passive income comes from investments, real estate, royalties, and other sources that don’t require active work. It’s the key to financial freedom because it allows you to earn money without trading your time for it.

I remember the first time I received a dividend check from my investments. It was a small amount, but it was money I hadn’t worked for in the traditional sense. It was a game-changer for me.

I realized then that my time could be better spent growing my passive income streams rather than working more hours. So I focused on ways to increase my passive income – investing more in stocks and bonds, buying rental properties, and even launching an online course.

6) They embrace delayed gratification

This is the ability to resist the temptation for an immediate reward in preference for a later, often greater, reward.

As a psychology enthusiast, I immediately thought of the famous “Marshmallow Test” conducted by psychologist Walter Mischel.

He found that children who could resist eating a marshmallow immediately, with the promise of getting two marshmallows if they waited, were more likely to have successful outcomes later in life.

Mischel once said:

“What we’re really measuring with the marshmallows isn’t will power… It’s much more important than that. This task forces kids to find a way to make the situation work for them. They want the second marshmallow, but how can they get it? We can’t control the world, but we can control how we think about it.”

I found this to be true in my journey towards financial independence. Instead of buying the latest gadget or going on an expensive vacation, I learned to delay those gratifications and invest that money instead.

It was tough at first, but over time, I saw my savings grow and my investments provide a return. The long-term rewards were worth far more than the short-term pleasures I had foregone.

Embracing delayed gratification isn’t always easy, but it’s a habit that can drastically improve your financial situation.

7) They’re not afraid to spend money

Here’s a counterintuitive habit of financially independent women: they’re not afraid to spend money.

Now, this doesn’t mean they’re out there making impulsive purchases or living beyond their means. Quite the opposite. What it means is that they understand the value of investing in themselves and their future.

For instance, they’re willing to pay for a financial advisor, take courses to improve their skills, or invest in quality items that will last longer.

I remember the first time I invested a substantial amount of money in a personal development course. It felt scary to part with that cash, but I knew that the knowledge and skills I would gain from it would far outweigh the cost.

And it did! That course opened up new opportunities for me and even helped me increase my income.

So don’t be afraid to spend money where it counts. The key is to make sure you’re spending with intention and purpose.

A practical way to start? Set aside a portion of your budget for personal development or investments each month. It might feel uncomfortable at first, but remember, you’re investing in your future financial independence.

Conclusion

Achieving financial independence may seem like a daunting task, but by adopting these habits, you can make it a reality.

Remember, it’s not about making drastic changes overnight but about taking small, consistent steps towards your goals.

Financially independent women understand that financial freedom is not just about having money; it’s about having control over your time and life. And that’s a goal worth striving for.

So start today – educate yourself, set clear goals, cultivate a growth mindset, and don’t be afraid to invest in yourself. Your journey to financial independence begins with the first step.

And as the famous Chinese proverb says, “The best time to plant a tree was 20 years ago. The second best time is now.” So don’t wait any longer.

Start planting your tree today.