The views expressed by the business participants are their own.
We live in a world where financial literacy is often self-taught, and being your own bank means being able to control, support and grow your finances independently. According to the annual P-Fin index, financial literacy in the US is running at around 50%, while the EU is not doing well either. According to a report by the American Public Education Foundation, US states are also inconsistent in how financial literacy concepts are taught to public school students.
The figures paint a stark picture – especially for women – who face significant challenges in financial empowerment. According to the Federal Reserve System’s 2023 report, women are less financially secure, struggle with debt payments and accumulate more credit card debt than men.
Additionally, fewer women than men have three months of emergency savings. And women of color are even worse off. In the business space, less than 2% of funding goes to women-led businesses, even though companies with women at the helm are showing strong growth.
Financial confidence is the key to overcoming this disparity. For entrepreneurs, especially women, building financial literacy is not only about empowering people but also about business life. Here’s how you can take control and truly be your own bank:
1. Use the gig economy
In today’s digital age, the gig economy is redefining work. For entrepreneurs, this means tapping into exceptional talent without the commitment and expense of full-time employees. Hiring gig workers – independent contractors, freelancers or temporary workers – helps keep your business agile and your costs low.
I rely on a hybrid model of full-time employees and contract professionals in my company. This allows me to scale up or down depending on the needs of the project. This approach not only conserves financial resources but also supports strategic growth. Using gig workers to handle on-demand tasks can mean more money stays in your bank, supporting your financial independence.
Related: How the Gig Economy Will Affect the Future of Work
2. Become a pricing ninja
How you price your products and services is important. Businessmen often stress about the price: set it too high, and you risk losing customers; is too low, and you will struggle to cover the cost. Here’s the thing: the price should reflect not only the value you offer but also the sustainability of your business.
When I started my consulting business, I made a commitment not to take my work for granted. I set firm prices, insisting that if customers want the unique value I bring, they need to meet my criteria. This approach has sustained my growth and positioned me as a paid service provider. Don’t be afraid to set your prices with confidence, making sure you cover your expenses and add to your financial “bank”.
Related: A Step-by-Step Guide to Choosing a Pricing Strategy
3. Negotiate like a professional
Negotiating isn’t just about closing deals — it’s an ongoing skill that can save you money and improve your cash flow. Review all your contracts regularly. Can you negotiate a better price for office space, registration services or insurance? Creative negotiations can include tactics such as revenue sharing or partial bartering arrangements.
For example, I have negotiated agreements where part of the payment is tied to project performance. This demonstrated my commitment and reduced upfront costs, benefiting the cash flow of my business. Use your discretion to negotiate terms that fit your financial goals.
4. Get professional financial help
Financial literacy can be a steep learning curve for many entrepreneurs. Although I have taken courses in finance, including at London Business School, managing business finances is always a continuous learning experience. The key takeaway? Do not import. Consult a financial professional who can guide you through investment strategies, tax laws and risk management.
A small investment in professional advice can bring huge returns in avoided mistakes and improved financial planning. Don’t hesitate to ask for help — self-confidence doesn’t mean doing everything alone; it means knowing when to invest in information that supports your goals.
Related: How I Taught Myself Financial Security – and How You Can, Too.
5. Create boundaries and learn
Having limits about spending and saving is an important aspect of financial behavior. Think of these limits as safety nets that keep you out of financial danger during downturns or emergencies. For me, knowing my limits and having a contingency plan in place was critical to sustaining my business.
But the boundaries are not enough. Commit to continuous learning. At the end of the year, ask yourself: What do I want to study next? What new strategies can I explore? Last year, I asked myself these questions and decided to take a management course called “Finance for Non-Finance Executives” at the London Business School.
Financial independence means more than being able to pay your bills on time. It’s about managing your money proactively, investing in your growth and maintaining a progressive mindset. By using the gig economy, knowing pricing, negotiating strategies, seeking expert advice and constantly educating yourself, you become your own bank—driving your financial journey with purpose and control.
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