The following is a discussion of two Maya Angelou quotations, both of which begin with “A Woman Should Have”. There’s a whole series of these quotations (see below), but the following two are the most financially relevant:
1) A WOMAN SHOULD HAVE … enough money within her control to move out and rent a place of her own, even if she never wants to or needs to…
I cannot agree more with this: the only thing I’d change is to make it gender neutral. A PERSON should always have enough money to escape or leave a situation if they need or want to.
This is where your emergency fund comes in. An emergency fund is an account containing funds earmarked for emergencies. Leaving a miserable relationship, or moving away because your partner dies or becomes disabled (thus necessitating cheaper housing) are exactly the kind of emergencies you should be preparing for.
So, as Maya Angelou’s words imply, Be Prepared: Do the following:
- Figure out how much housing you can afford on your own (it shouldn’t exceed 30-40% of your monthly income, and I only say 40% because in cities you may be able to cut your transportation expenses).
- Check the prices of places where you would like to live that are within your budget.
- Multiply the monthly rent and utilities bill by 5, and make that an emergency fund savings goal. Set up a special account for it and begin saving right away! The 5 months rent will give you first and last month’s deposits, and a few months leeway should you find yourself unemployed at the same time.
- Now that the money is taken care of, it’s up to you to find the confidence to leave if you have to.
2) A WOMAN SHOULD HAVE a feeling of control over her destiny…
Mature financial habits go a long way towards feeling like you’re in control of your life.
My mother always said: money doesn’t buy you happiness, but it helps you avoid a lot of unhappiness!
Reading Nickled and Dimed showed me that those without money are at the mercy of everything: the whims of their employers, their health, their children, their spouses, social services, housing markets, gas prices, EVERYTHING.
Finding ways to mitigate these risks is imperative to good financial health, which will go a long way towards feeling in control of your life.
So consider the following:
- Make sure you have a job you are comfortable with, but that you could leave if you needed to!
- Don’t buy more house than you can afford (and once you buy an affordable house, insure it!).
- Always consult the experts if you’re even the slightest bit unsure of anything important (ex: doctors, lawyers, financial planners, mortgage experts, etc…)
- Have at least 3- 6 months expenses in an emergency fund!
- Get proper health insurance: this is not so much for us Canadians, but if you are an American, I am, sadly, learning just how IMPERATIVE it is to have proper health coverage. Also consider the need for proper life and disability insurance coverage!.
And, last but not least…
- Spend less than you earn! Avoid consumer debt at all costs! Nothing spells “lack of control” like owing money!
Addendum:
I originally received a list of Maya Angelou’s quotes as a chain letter, which told me that if I sent it to 6 women I’d have good luck for the whole year!…or the knowledge that I am “truly loved and thought of by a friend”, which is great but I sorta used up all my karmic reserves the other day not getting hit by a car.
So here’s me passing on the more salient financial lessons Maya Angelou’s words evoke to, hopefully, 6 women a DAY, as I am hoping to avoid being hit by another car.
But now it’s YOUR turn! What do you think about Maya Angelou’s inadvertant financial lessons? Do you agree or disagree with anything in particular? If so, why?
