Creating Wealth


We know from research that when it comes to money women take a different approach to men. Whilst many people believe those women are better managers of the household budget, much research has been put forward to show that this is actually true!  .

Surveys suggest that men tend to take a more longer term view of their finances particularly when it come to managing debts.

Women tend to look at their current levels of debt while men tend to look to the future and are more likely to plan ahead when it comes to their finances. Women worry more about how they are going to pay off all their current credit card bills, store cards and loans along with their mortgage, shopping and living expenses with three quarters of women doing so, meanwhile less than 50% of men worry about the same thing. Only 13% of men know what their current debt levels are.

While men are laid back about their current debt levels they are better prepared for the future. Men are better at investing their money with half of all men investing in an ISA while only 35% of women are doing the same. Only five out of ten of women have a savings account with men in the lead with six out of every ten. Three quarters of men are paying into a pension for when they retire while only half of women are preparing for their retirement.

For Women making the change from PAYE to  entrepreneur, the early years of running a business tend to be associated with a much higher degree of uncertainty around income and cash flow, than one would have been used to when earning a salary from a regular job. When you are running your own business you have to learn to manage with a higher degree of uncertainty. Therefore it is important to be aware of financial pitfalls so that you aren’t forced by desperation to make deadly financial mistakes.

Here are the most common mistakes that people make when it comes to managing their personal finance:

Mistake #1: Spending on Credit Cards.

Possibly the biggest PR success of the last 50 years was the re packaging of debt as credit! If instead of thinking of credit you thought of it as a debt card how much less likely are you going to use it to purchase things that you could potentially manage without.

Credit card debt is the fastest way to ruin your finances. It is easy to acquire and difficult to pay off. The minimum balance doesn’t pay off enough of your outstanding balance to help you very much. You will be paying on your balances for decades. Even a £500 balance can take you over a decade to pay off if you simply make the minimum payment.


When you add to this the extremely high rates of interest charged on credit cards – even with central bank lending rate well under 5% for the last 10 years credit card rates have remained in double figures, most starting around the 20% mark. Making minimum payments is a recipe for many many years of increasing debt. Often there are penalties for missing payments too. Thirty percent interest is common on a credit card once a payment has been missed.


Mistake #2: Not building up a contingency fund

Too many people live pay cheque to pay cheque, indeed a lot even don’t manage that- having too much month left at the end of their money. Not only that they have no savings, which means that  they have nothing to back them up in the case of an emergency.

A good rule of thumb is to have at least 6 months earnings in savings to carry you through should you not be in a position to earn income. It takes clear planning, time and focus to discipline yourself to set aside money on a regular basis to build up your emergency fund. If you are thinking you yourself that you couldn’t possibly afford to put anything aside, imaging you have just been asked to pay that amount in increased tax. The money would be taken off you before it reached your pockets and despite however much you moaned about it you would just get on and manage on less money.

Mistake #3: Relying on an income instead of creating a source of income.

Today we live longer than ever before, which means that even with the increases in the retirement age most people will live on average 20 years in retirement. If you want to retire with enough money to live comfortably, you have to start the work of creating an income source now. Having a source of income is the difference between owing an orchard and being given an apple. If you have an apple once you eat it its gone, however, if you own an orchard you can have apples whenever you want.

Many people who go into business simply exchange their time for money. This means that they are basically employing themselves. Entrepreneurs start businesses with a view to creating a source of money so that it will eventually pay them whilst they are not working in it, i.e. provide passive income. This should be your goal  from the start. It means that you need to be constantly looking at ways to package your business services and products so that they add as much value as possible to as many people as possible. It also means using modern business techniques to automate your processes and reduce costs.  Whilst it may take a lot of hard work in the early years to plant and nurture and orchard, once it matures the work is done and you can sit back and enjoy the fruits of your labour.

One Women Brand helps women develop a strategy for creating future wealth by developing multiple sources of income.


About Ola Agbaimoni

Known as "The Business Detective" due to her "Sherlock Holmes" like problem solving abilities, Ola works in partnership with her sister Carole Pyke, The Business Bard. Together they run Eélan Media, a new type of Business growth agency offering a forensic approach to business and a creative approach to marketing. As well as being an expert in business planning, training and development, Ola is also a certified coach, NLP practitioner; an accomplished author, speaker and presenter.

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