How Power Women Protect Their Finances With Smart Money Boundaries

1. They pay themselves first.

Building consistent savings habits is important to wealth-building no matter how much you earn, and the practice is often one that continues even after you're well-booked and well-paid. Actress, producer, and philanthropist Queen Latifah has always been a proponent of this after learning from her mom to "save your money."

This is the epitome of the energy behind paying yourself first. You squirrel something away and take care of yourself by taking care of your future first, before paying any bills. You invest in yourself (within your means and with a budget in mind, of course).

2. They don't loan money without clear repayment rules and expectations are agreed upon.

It's awesome to be able to help people out by loaning them money, but when you don't communicate clearly about repayment (or what will happen if the money is not repaid) you set yourself up for a cycle of taking on other's debts and maybe even building more debt of your own.

Unless you're doing charity, set those boundaries early about when and how a loan will be repaid. And if you know you won't get the money back, rethink the loan altogether.

3. They create budgets that are realistic and reflect their current lifestyle.

In her book, What I Know for Sure, Oprah Winfrey wrote, “I hope the way you spend your money is in line with the truth of who you are and what you care about.” This is key for many successful women, especially when they're budgeting and investing.

Issa Rae told Money.com, "I don’t splurge just because. I will never have 17 cars. I will never have expensive jewelry. I don’t spend that much on my clothes, or shoes. I will spend money on a stylist, and a makeup artist, because those things feel necessary for work. But material things? No."

There's a clear indication that there are clear value systems sustained by what matters to them no matter how much they make, and budgeting is a huge part of that.

4. They consider the long-term effects of a rash purchase before proceeding.

It's totally okay to treat yourself, but if you find yourself impulsively buying things you don't really need or always living check to check because you've maxed out your credit card to take that sixth trip in one year, there's a problem that might put a damper on those financial freedom plans. (That is unless your trip is part of how you make your money, and it's a worthy investment into expanding your prospects.)

Successful women are conscious of the long- and short-term effects of purchases, small and large. They're always thinking about how one action can impact the bigger picture.

5. They are givers and believe in the reciprocity of that.

Many of us are familiar with the famous quote, "To whom much is given, must is required," and there's that undertone of service and charity that is a common thread for wealthy, successful women, especially those who run businesses or lead brands. Involving yourself in acts of service not only enriches your development and that of communities, but it increases your exposure, network, and credibility, often leading to more opportunities to make more money.

Most leading CEOs, entrepreneurs, and professionals are big on giving back, whether it is through resources, a nonprofit, money, or their time. "As you become more successful, it's important for you to give back. Even if you can't financially give back, kind words and sharing about other businesses on social media mean so much. Every little thing counts. Help out your friends and family with advice, encouragement, and support," said Angela Yee, award-winning radio host and entrepreneur.

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