When you think about women and money, you can probably imagine the gif where a woman is throwing cash into the air.
Or maybe it looks like this rapper-like attitude of: “I buy everything I want, I buy expensive liquor, I can even buy you if I want to”.
smh.
But there’s more to the importance of women having a seat on the financial table.
Why?
It’s not only so we can buy expensive champagne in the club, or spoil our Sugar Baby. The importance of women accessing financial independence goes way deeper.
First, let’s look at some facts about the attitudes that women tend to have towards money:
According to a Merryl Lynch study:
- 61% of women would rather talk about their own death than about money.
- Women say their top barrier is education: 87% of women say basic financial education should be part of the high school curriculum.
According to the US Bank:
- Women are way more likely than men to associate words like stress or anxiety with financial planning.
- We’re less confident than men about managing money. However, I found it interesting that that is not stopping us from investing and making financial moves, which is GREAT.
This shows that we want to learn about money, even when we don’t have that much confidence about it.
And you know what I think about confidence: it comes as a result of realizing that we’re able to do something. Meaning, it comes AFTER taking action.
My theory is that we’re less confident about money because, historically, we have less experience making financial decisions.
Mind you, women couldn’t even get credit cards on their own until 1974!
And look, I’m not talking about the “gender-related financial gaps”.
Because I’ve looked into different studies, and I haven’t found real evidence of a gap based on discrimination.
So this is about us addressing what IS evident in every research: it’s time to get educated and confident about our finances.
I’ve talked about my money management principles before, so today I want to go deeper.
No more being aloof about these things. Okay?
I could go on for hours, but today I’m going to mention 4 of my main reasons why we should pay attention to and know about money! Let’s go.
P.S. this post may contain affiliate links. This means that if you click through and purchase something, I may receive a portion of the price. It’s at no extra cost to you, but the profits go directly back into improving this blog!
1. It gives you the freedom to choose your principles over money:
Let’s look at two different scenarios to make this point crystal clear:
In the workplace:
Have you ever stayed at a job with a toxic environment, or a place that violates your values, just because you can’t afford to leave?
If you’re in that situation right now, I don’t want you to feel discouraged! This may be the reminder you needed to start taking the right financial steps.
I’m telling you this because I’ve been there!
Let me tell you a personal story.
I had this job where I had been working for a while. Suddenly, I started experiencing some mental health-related struggles.
So, when I decided to get help, I started a process of visiting different doctors and getting many tests to understand where the imbalance came from.
The beginning stages of mental health treatment tends to be a little intense and busy because there’s a lot going on.
You need to find the right doctor or treatment, get tested for eveeerything: hormones, bloodwork, it’s a lot.
So at this job, I requested to have 1 day a week where I could leave 1 or 2 hours earlier than usual, so I could make it to all these medical appointments.
Initially, they approved my request, and we decided that I would arrive 1 or 2 hours earlier on other days so I could make up for my “lost” hours.
After 3 weeks of this arrangement, the HR Manager called me into their office and said:
“Hey, I understand that you’re doing your therapy thing, but I need you to fix that problem soon because you having a different schedule is really confusing for the company, so please, make sure that this situation doesn’t go on for much longer”.
Girl.
I felt like a bucket of ice dropped over my head.
At this job, I had put in unpaid extra hours if needed for many projects, did work-related stuff during the weekend… I showed commitment.
And now, in one of my most difficult times, I was being shown a complete lack of compassion.
Granted, it wasn’t the first time they did something like this. But that was the last straw for me.
I was done with that place.
But at that time, I didn’t have the financial capacity to just quit.
So, right there and then, I decided that I was going to do everything in my power to get out of there.
I started saving like CRAZY, taking odd jobs during weekends, and a couple of months later, I was finally able to quit that job.
And that’s what I mean by having the freedom to stay faithful to your values and principles over the financial power someone has over you.
Which leads me to the next scenario.
In relationships:
I’ve heard many cases of women who’ve had to stay in an abusive or unhealthy relationship only because the man had all the financial control, so they couldn’t afford to leave him.
They don’t have an income or a financial plan, so they’re basically “trapped” in these awful situations.
The scary part? It can happen to ANYONE.
And I’m not talking about families who’ve thoughtfully decided to have a more “traditional” configuration where, for example, the woman stays home to care for the rest of the family.
That, in my opinion, is a job as well!
But even then, if that’s your position, I encourage you to not become complacent.
Be engaged in the finances.
Be aware of how money is being spent, where it’s being saved, and where it’s being invested. Discuss your financial plans.
Just because you don’t have a paycheck from an employer, doesn’t mean that you should disengage. No, not at all.
So now let’s look at the other 3 reasons why understanding and being involved in your financial growth is important.
2. You can support causes you care about:
I can’t tell you enough about the beauty of generosity.
Of course, every dollar that you decide to donate counts, so whether you’re donating $10 or $1,000 to a cause, your money is making a difference.
But imagine being able to afford to give a BIG donation to a cause that you truly care about.
Causes like child trafficking, or supporting a pregnancy resource center, or helping children across the world that don’t have access to clean water.
Whatever it is you care about, imagine being able to make a huge tangible impact.
To change the life of a whole community. To lift up the voices of those who don’t have the resources to access traditional media.
This is all possible when we develop a financial strategy and grow our wealth.
And we achieve this by understanding money and learning to make a financial plan that makes sense for us.
3. You’re being a good example for other women and future generations:
You don’t need to be a mom, or even want to be a mom, to care about the next generation.
It’s a fact, seeing women succeed in one area gives other women the courage and confidence to believe that they can be successful there too.
And if you do have kids, I once read that the best thing you can do for your children is to set yourself up financially.
And it’s so true!
For example, statistically, women often tend to use their retirement funds to pay for their kids’ college.
And while it sounds altruistic, and it’s definitely a noble cause, you’re not helping your kids in the long run.
We need to make sure that we don’t present a financial burden to those around us. That’s the best way to help them.
According to the Women’s Institute for Secure Retirement, “one or more of your kids (statistically more likely to be your daughter) might then be forced to help finance your living expenses during your retirement or quit her job to become your caregiver” [via].
4. You can truly improve your lifestyle:
Okay, we need to finally address the elephant in the room.
Repeat after me: there’s no shame in wanting to take that amazing trip to Paris.
Or remodel your dream kitchen.
Or finally get a closet full of sustainable pieces that truly represent your style.
Wanting a better lifestyle is not wrong. The problem comes when we become obsessed with “status”, or when we start to think that our value as human beings depends on the logo on our shoes.
But if that’s not your case, and you just want those nice things because they make your life easier, or put you in a good mood, or make you feel sexy, whatever it is, it’s totally okay!
Having financial independence will give you a responsible way to achieve those goals.
What to do now
First, go read my blog post on my money management principles for an overview of my specific game plan.
I still want to summarize here some of my key tips:
Have a budget
Really important so you know where your money is going.
Have an emergency fund
This may be tough love, but it’s for your own good.
A man is not an emergency fund.
Your parent’s investment real estate property is not an emergency fund.
Reading “The Secret” and hoping to manifest more money into your bank account is not an emergency fund.
Have an actual bank account where you put actual money, readily available, in case of an emergency.
And btw, not everything is an emergency! Lol but that’s a conversation for another day.
Invest early
I wish I would have known this one earlier.
Growing up, investing wasn’t a big thing in my country. Some people did it, but it wasn’t common.
So this investment concept required a HUGE mindshift of me!
But I had to understand that the secret to building wealth is not to store everything penny under the mattress.
The secret is to invest the right way.
Again, the right way is always the informed way.
More on my favorite resources in a second!
Get educated, but don’t become obsessed
You don’t have to read 76 books and follow every single financial “expert” on social media.
Sometimes, information can be confusing and even contradicting.
I know that the topic of money can be overwhelming.
And if you’re like me and are not super passionate about the stock market, and investing, and all the technical stuff, just learning about how money works and how money moves is enough.
Again, these are some of my favorite personal finances resources:
- Paula Pant’s “Afford Anything” podcast and blog
- “I Will Teach You to Be Rich” by Ramit Sethi
- Dave Ramsey’s “Financial Peace University” course
Choose your core and trusted sources, add a couple of news outlets, and move on.
The personal finance world is like every industry on social media: it can be full of clutter and #SeventeenFigureMoneyExpert 20-year olds.
That’s why I love Ramit Sethi’s book, it’s really clear and to the point.
Talk about money with your partner
If you’re married, you both need to be on the same page about your finances.
How much debt each of you has? What are your financial goals? How are you going to get there? What’s your emergency plan?
If one of you is working at home taking care of the family, make sure that your plan includes that person’s protection.
Don’t make emotional money choices
Marketing messages targeted towards women tend to be very fluffy and overly emotional.
And hey, I’m completely pro being in tune with your emotions and your intuition, but I also believe that women are capable of having self-control.
Don’t let crazy and fear-inducing messages deter you from your financial strategy.
Don’t let get-rich-quick promises make you spend money that you don’t have, or worse, set you up for a whole lot of struggle and debt.
Ultimately, yes, I want to have a beautiful lifestyle.
I am obsessed with skincare, and I want to be able to afford monthly facial massages.
But the benefits of knowing my money go waaay beyond that.
I’m telling you from experience! If you know how I recovered from my financial STD (and if you don’t go read this blog post on it), you know that learning about personal finances has been one of the most empowering decisions I’ve ever made in my life.
I feel so much more connected to my femininity now.
I don’t have to stress over money, even when I don’t have a lot of cash in the bank.
It has allowed me to plan, and to be excited about the future.
And I KNOW that it can have the same effect on you.
But remember, take baby steps.
One baby step after the other will create INCREDIBLE results.
I promise!
Please share this post with a woman in your life that you love so so so much!
I hope we can help more women in their feminine journey, as leaders of their financial lives.
I can’t wait to see you soon!
With love, E. ♡
