April 24, 2024

90% of High Earning Women surveyed are not confident about money

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  • Rachel Rodgers, author of “We Should All be Millionaires” says that women are constantly told that they are not good with money.
  • She completed a survey that concluded with 90% of successful high-earning women saying they don’t feel confident making decisions about money.
  • There are steps women and everyone else can take to build confidence and financial security.

Self-made millionaire Rachel Rodgers‘ the community of “thousands of female entrepreneurs” has a median income of over $100,000.

But when she asked if they trusted them to make money decisions, she was surprised to find that 90% of those surveyed said they didn’t. Rodgers found that smart, intelligent women, even six-figure earners, still internalized what society told them about women and money.

In his book, “We should all be millionaires” Rodgers found that men and women receive completely different messages about money through the media and society in general. She writes, “in male-oriented media, the messages of financial success are accepted and encourage men to invest, spend and take financial risks to achieve power.”

Women often get the opposite message. “Women are encouraged to maximize their economic contributions through forms of thrift like saving small amounts, earning small amounts, or finding a means of financial support, because women cannot support themselves,” she writes.

Everyone should be confident in how they handle their money, but women even more so. According to AARP, women are 80% more likely to find themselves living in poverty in retirement — so it’s extremely important for women to gain control of their money and build wealth steadily.

Here are three tips to feel more confident about your money and building wealth:

1. More focus on investing, not just saving

Women have always been savers, but there needs to be more focus on investment. The difference between the two is that investing has the ability to compound and grow your wealth over the long term.

Women have come a long way, but challenges remain: the gender pay and retirement gap, rising costs around childcare and elderly care, and even the pink tax (yes, this is still a thing). Investment can be an important step in overcoming these challenges.

It’s okay to start small to invest; the important part is getting started. Make sure you’re contributing to your employer’s 401(k) and work your way up to investing 15% to 20% of your entire gross paycheck. If you are not connected to a corporate employer, start investing in an IRA. With a Roth IRA, money is allocated for retirement after taxes, so your investment grows tax-free.

2. Build that emergency fund

I cannot stress this enough. A well-funded emergency fund is the first step to building financial security and confidence. Start with whatever amount you can, with the goal of accumulating six to nine months of expenses that will cover you in the event of job loss, unexpected illness, or a family emergency. A high-yield savings account is a good place to store this fund, so it can earn interest while still being liquid.

Living paycheck to paycheck is the No. 1 way. 1 to create financial concern. The likelihood that most of us will face some form of financial hardship is quite high, so prioritizing emergency savings is essential.

3. Discover the debt

If you are in debt with credit cards, personal loans, student loans, or anything else, you feel like you have more money than money. Paying off debt is the first step to paying yourself first and putting more money in your bank account right away.

A good strategy is to pay off high interest debt first, then tackle lower interest rate debt. This is called the “debt avalanche.” Another strategy is the “snowball” method, where you clear your lowest balance debt first to build momentum, then focus on the next lowest balance debt until all your debt is paid off.

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