Did you know that women make up 51 percent of the U.S. population and according to the U.S. Bureau of Labor Statistics, 40 percent of U.S. working women now out-earn their husbands? Ladies, as such a prominent demographic we no longer have the choice to sit out of conversations pertaining to our wealth. This is our time for financial empowerment.
In 40 percent of households, we are bringing home the bacon! As half of the population and almost half of the out-earning power, we should be involved as a 50 percent shareowner in the wealth decision making process!
According to New York Life Investments, in 2020, women control 51 percent of the personal wealth in the U.S., an estimated $22 trillion. And this number is expected to increase by 30 percent, to almost $28 trillion, over the next forty years as intergenerational wealth is transferred to the hands of women. According to a State Street Global Advisors’ survey, almost 60 percent of women today are solely responsible for making investment decisions.
Whether by choice, widowhood, or divorce, we are left with the duty of making the wealth decisions. We are being forced to take financial responsibility and become the sole lead of our wealth management team. Why not take the initiative and be proactive on this front? If you are part of this demographic, then you know how important it is to have concrete knowledge about how your Wealth Empowerment Plan is being managed.
Women Live Longer
According to the CDC, on average, men will live to age seventy-six, and women will live to age eighty-one. Therefore, we will have five years of having to “figure it out,” or “wrap our heads around it,” or “feel comfortable with the way the finances and wealth decisions have been managed,” and that’s on average. Meaning, you may have many more years than that in which you have to take the reins of your financial life if you haven’t been an active and engaged member in the wealth decision-making process in the past.
Women Deserve to Be Understood
Of women, 61 percent feel misunderstood by the financial services industry and 62 percent of women are walking away from their financial advisor upon the death of their spouse, according to a State Street Global Advisors survey.5 In my opinion, this is completely unacceptable. Why don’t women feel comfortable with their financial advisors—the people who are supposed to be ensuring that they, too, along with their spouses, feel empowered by their wealth?
You know I have a theory and some strong feelings on that topic. It’s ridiculous to me that women are being left out of the wealth decision-making process by their own financial advisors! It’s insane that more than half of women feel that they have nowhere to turn when it comes to solid guidance in managing their wealth. Even more shocking is that this statistic exists considering that 60 percent of us are solely responsible for making investment decisions.
So, basically, the same number of women that are carrying the burden of financial independence are also faced with not being able to find good financial help they can trust? Ladies, make sure you’re working with a CFP® who knows you, your value-backed goals, and your Wealth Empowerment Plan inside and out. Make sure they have your best interest at heart and will have your back 100 percent in a time of need or during a tragedy.
Women Have Significant Influence
According to Harvard Business Review, 93 percent of women say they have significant influence on what financial services their family purchases,6 but only 20 percent of female breadwinners said they felt “very well prepared” to make wise financial decisions, according to a study done by Prudential.7 This shows that we influence “who” our families use as a financial advisor, but our influence is undermined by misperceptions around who we are and how we invest. Use your influence to choose an advisor who will listen to you, understand you, and make sure you feel “very well prepared” to make any financial decision that life throws your way, with their help!
Women Are Smart
Per the Department of Education, women currently earn the majority of bachelor’s degrees (57 percent), master’s degrees (60 percent), and doctoral degrees (51 percent). Hell yes! And, as today’s younger women enter the labor force at higher rates, they bring with them higher levels of education than any generation of women who have come before them, according to the Pew Research Center. The future is female! This just proves that we are able and willing to learn how to feel empowered by our wealth. So many times I hear women say, “I’m not financially smart,” or the one I hate most, “Sorry if this is a dumb question, but . . .” Are you kidding me? Look at these statistics again! YOU ARE SMART. WE ARE SMART. And remember, it’s okay to still be learning about your wealth. According to these stats, we’re fast learners and fantastic students!
Women Know the Gender Wealth Gap Is Real
Because the narrowing, but persistent, gender pay gap still exists, women earn about 85 percent of what men earn, according to a Pew Research Study. Due to lesser earnings over our lifetimes, time out of the workforce as a caregiver (whether that be with small children, or caregiving for aging parents), and the market’s performance, the cost of the “investment gap” over a woman’s working lifetime can easily add up to $1 million, according to Money. What more proof do you need than that to finally put yourself first when it comes to saving, investing, and wealth accumulation?
We deserve to have a nest egg that is just as large as our male counterparts’. We need to take the plunge when it comes to investing through a mix of stocks and bonds that make the most sense for our unique value-backed goals. According to Wealthsimple, women overall invest 40 percent less than men do. This may be a consequence of earning less, feeling misunderstood in the financial industry, or not feeling like we have the education and empowerment we need to make wise decisions, as previously discussed. However, we must start to take action when it comes to our wealth—we’re literally losing out on millions of dollars by not investing. We know the gender wealth gap is real, and we have the knowledge to combat it, even with seemingly insurmountable societal contributors.
Our Relationship with Money Is Different
We know that investing isn’t about beating the benchmark (i.e., the S&P 500). According to a State Street Global Advisors’ survey, women make decisions based on values, and we intrinsically link them to our financial goals and priorities. We’re not out to “make a quick buck;” we’re out to ensure our investments grow over the long term so we can live a long beautiful life without financial worry. We know we must make financially smart and savvy decisions as we have to make more work with less. Remember the statistics I shared about the investing gap?
Think about it this way. We may have less to invest throughout our lives due to the earnings disparity over time, which means we know we have to take precious care of the money we are committing to investing. We don’t need to take huge swings in the market and seek to find the next “best stock” to invest into. We feel empowered by knowing that our money is invested in a mix of stocks and bonds that makes the most sense for our plan and that it is growing sensibly, whereas men are typically looking for the next hot stock so they can show off to their buddies. Speaking of showing off . . .
When We Invest, We’re Good at It
It has been proven that typically, men’s overconfidence in investing leads to women investors outperforming them by a whopping 1.2 percent per year. Crazy, right? Not really. Because women have a different relationship with money and aren’t focused on beating the benchmark, they are able to keep a level head during down markets, which means they aren’t over -trading in their accounts. This in turn leads to increased performance over time, more awareness of fees, and they aren’t as cocky. According to Money, women are more aware of financial risk than men, which helps them make informed, rational investing decisions.
So then what’s keeping us from investing if all the above statistics are true and we are proven badasses? The likely culprit: fear and a lack of confidence when it comes to making wealth decisions. We don’t feel empowered when it comes to our wealth! Men are more likely to take the plunge and start investing earlier than women. Men are putting themselves first and saving in a powerful way: through investments. They are making their money work for them! They know there will be downturns in the market, but they know that downturns don’t last forever.
Ladies, it’s our turn to take the plunge, start putting ourselves first, and investing in our futures. We have the knowledge to feel empowered by our wealth. We’re confident saying we’re still learning. We owe it to ourselves to make our money work as hard as it can for us. After all, we’re working as hard as we can for it!
Universal Truths
Now that we have the statistics out of the way, let’s talk about universal truths that we must believe in our souls if we are to change the wealth narrative and #LevelTheWealth.
Women Deserve and Are Worthy of Wealth
I can’t tell you the number of times I’ve sat with a recently divorced woman and she’s said something like: “He worked so hard for this money. I didn’t work a day in my life when I was with him. Is it wrong that I have half of it?” Wait, what? Yes, you deserve half! You were home raising his kids and running the household while he was climbing that corporate ladder. Or how many times I’ve heard: “I don’t know if I’ll ever be wealthy. I don’t make a ton of money.” Girlfriend, YOU ARE WORTHY OF WEALTH. Let me say it again: YOU ARE WORTHY OF WEALTH.
And remember, “wealth” means something different to every single person. The SMART value-backed goals that you created will guide you toward specificity with what you expect from the universe and yourself. You must believe that you can and will succeed in your Wealth Empowerment Plan. You were not born to live day to day, paycheck to paycheck. You were put here to blossom and flourish into the amazing woman you are. You are not a victim of your circumstances. You are on a journey and your journey was meant to be filled with wealth, health, and happiness. You deserve wealth and you are worthy of it. Your mindset and attitude must be in the right place for you to truly succeed.
Women Welcome Wealth Like a Friend
How do you welcome wealth into your life? Over Christmas break 2019, I was sitting with Michelle having a glass of wine and watching Netflix after Alex and I had put the girls to bed. We were chatting about all the things involved with being a woman in business—the passion, the fun, and the challenges. During our conversation, Michelle talked to me about the fortune she had experienced with her business recently, her new booming income, and her curiosity around how to keep things going so well. I sensed her very nervous and anxious energy and, as her sister, I called her out on it. “Well geez,” I said, “you’re talking about this money—which is a product of all your hard work, by the way—with such fear and anxiety.”
I then asked what if she started thinking about this money as if it were her friend. If a friend stopped by for a visit and you greeted her with unease and nervousness, she would most likely leave as fast as she could. Instead, what if you welcomed her with calmness, kindness, acceptance, and open arms—like she truly belonged in your home? Are you blocking money from entering your life? Do you greet it with a warm and joyous welcome, or do you sit there wondering why it came to you and how fast it will leave? Wealth is your friend. Welcome it joyously, and with open arms, into your life.
It Is Safe for Us to Be Wealthy
This is one that a lot of women struggle with when they find themselves as the sole person responsible for making wealth decisions. The questions of “Who will come out of the woodwork once I get my financial life in order, feel empowered by my wealth, and start to make smart decisions to continue building it?” or “Who will try to take advantage of me for my wealth?” These are all real fears that we need to have a real conversation about.
Believe me, I’ve heard time and time again about women who find themselves widowed and walk into a bank with their statements and the teller behind the counter is immediately trying to sell them an annuity or a product in an effort to line their own pockets with a big commission check. That one REALLY grinds my gears. Or, of the savvy businesswoman who has built a beautiful empire for herself only to be caught in the midst of some baloney lawsuit just because someone wants to try to make a quick buck off her fortune.
Ladies, I’d have to believe that these are the exception, not the rule, but to that end, it is imperative that you have a team of people you know, love, and trust on your side to ensure that you’re making the best decisions for yourself and your wealth. It is safe for you to be wealthy. The universe wants you to be wealthy. You can empower yourself with knowledge, confidence, and a team of professionals to make sure you feel safe and secure with your wealth. It is yours, you’ve earned it, and you will continue to build it. It is safe for you to be wealthy.
The More We Give, the More We Receive
This is one that I can’t explain; it’s simply a universal truth. The more you put into the universe, the more the universe will give you. I’ll use myself as an example. When I first started advising clients, I didn’t make any time for pro bono work. I booked myself to the gills with anyone who could fog a mirror as long as they had something to invest. I was taking on clients that weren’t my target audience left and right, but I couldn’t turn down business, right? Ugh. Thankfully, I ended up getting involved with the Financial Planning Association’s pro bono committee for the Maryland chapter and was forced to take some time to give back to my community through my unique expertise. Over time, this led to no longer needing a committee to structure this time for me, but being able to commit to and structure this time on my own.
I started taking meetings with women who I knew had nothing to invest and spending an hour walking them through their financial plans. I started giving clients who were not my target audience over to other advisors within my firm instead of hoarding them under my book just to make another dollar. When I started doing this, I noticed that I was getting calls out of the blue from women who needed my help, and were good business for me too! I noticed that my schedule was getting jam-packed with women who I had so much fun meeting. I noticed that work started to feel less like work and I was making more money than I had ever made—with such ease!
Again, I can’t explain it, but I KNOW it’s real. Giving doesn’t just have to be in terms of money. Think about what your expertise is in this life and how you can use it to help others who have nothing to give back to you. You’ll be amazed at how good it feels to truly help others and you’ll be amazed at how the universe truly helps you.
We Are Allowed to Love Being Wealthy
Wealth is about having options. You are allowed to love being wealthy because it allows you to be the most you can be and do the most you can do—whatever that means to YOU. You have options when you have wealth and having options is powerful. You have the option of leaving a giant tip, or donating to a charity you believe in, or generously giving gifts. You have the option of going on that vacation you’ve always dreamed of, or finally taking that leap and starting that business that’s always been itching at the back of your mind.
You are allowed to love being wealthy because it affords you the ability to put your best self into the universe. Being wealthy is not the root of all evil. It is not a sin to be wealthy. Ugh, I am so tired of that weird stigma (and note how it rarely applies to men!). It’s all about being a good steward of the wealth you have, and like I mentioned above, using that wealth to better yourself and the world you live in. Love the wealth you’ve built, make smart decisions to build more, and use it for the betterment of yourself and those around you.
We Are Grateful for the Wealth We Currently Have
I know that every day we’re so bombarded with “gratefulness journals” and “tips for being grateful” and “daily gratefulness affirmations,” but this isn’t that. What I simply want to say is this: Be grateful for the wealth you currently have and the wealth you have already built for yourself. So much of what I do when I meet a woman and walk her through her Wealth Empowerment Plan for the very first time is to show her all that she’s accomplished thus far. I love watching women’s faces when I show them their net worth and they see their total. They’re often surprised to see how their hard work throughout their lifetime has paid off in such a real way.
So often, we get ahead of ourselves: How much money am I going to have when I retire? What will my salary be when I get my next promotion? When am I going to be a millionaire? All great questions, but can we take a moment before we figure all that out to give ourselves a pat on the back for all the hard work we’ve done to get to where we are today? Look around you. Are you in your own home, or an apartment snuggled under a blanket? Are you on a plane headed to your tropical beachside vacation? Are you just getting off work, exhausted after putting the kids to bed and reading this while eating a cold dinner? Whatever your situation, be thankful and grateful for the wealth you have built that has brought you here. Build out your net worth like I taught you in chapter six. Look at that snapshot in time of your current wealth and be grateful for what you have built thus far. You’ve worked hard and should be proud of yourself.
We Can Change the Narrative
With women being the driving force over the next decade and decades to come, we are in a prime position to shift the wealth world to include women, understand women, and recognize us as the wealth powerhouses we are. This isn’t going to happen overnight, but we can already feel the shift happening around us. It is up to us to stand in front of that bull on Wall Street and let the male-dominated world of wealth and finance know that we are here and we demand that the narrative around investing and wealth empowerment shift. This shift starts with us knowing and standing firm in our Wealth Empowerment Plans. It starts with us truly understanding our wealth and taking the “bull by the horns” when it comes to making wealth decisions and choosing a financial advisor who recognizes who we are, why we’re investing, and where our financial priorities lie.
It starts with us having these wealth conversations with our spouses and encouraging our girlfriends to do the same.
It starts with us teaching our daughters how to save and why it is so important for her to understand money.
It starts with us.
There has never been a more important time to #LevelTheWealth. I am committed to do so for myself, my sister, my mom, my daughters, my friends, my clients, YOU reading this, and every other woman who has found herself taking a stand for her financial independence. We’ve got to change the narrative and we’ll do it together.
Like this article? Check out “Baby Steps to Wealth and Abundance”