Crypto. ETFs. The Great Resignation. NFTs. Robo-advisers. Salary transparency. A pandemic that won’t quit. And inflation the likes of which we haven’t seen in 40 years. There are so many question marks out there right now, but at least one thing is pretty clear: This is not your mother’s economy.
That doesn’t mean you can’t handle it. Far from it—you just need a new set of rules. When it comes to money, having rules can be particularly helpful. Why? Because although there are some elements of the financial world that you can’t control (stock prices, rising interest rates, and a thousand others), you can reduce the amount of volatility in your financial life by controlling what you can—and when you do that successfully, it’s going to bring your financial stress level waaay down.
If you’re looking for financial empowerment, less worry, and a greater sense of control over your money, it’s time to breathe these new rules in and make them a part of your playbook from here on out. As we say at HerMoney.com: You got this. Video player poster image Getting Paid Is Good. Getting Paid More Is Better.
The gender wage gap, where women earn just 82 cents for every dollar a white man earns—women of color earn even less—is closing. In fact, the Pew Research Center notes women under the age of 30 have made pretty big strides: They earn 93 cents on average, up from 88 cents in 2020. And young women in big cities earn comparatively even more.
The problem is, those gains don’t stick as we age and take breaks from work to do things like have kids and take care of our parents. But no matter how old you are or where you live, what you have to remember about the gap is that it’s an average. And “average” is one thing you are not.
First, acknowledge that you deserve more. As Sallie Krawcheck, founder of the female-led fintech firm Ellevest, likes to say: “Nothing bad happens when women have more money.” She’s right. Women are more willing to use our money to create the change we want to see in the world, from ensuring our children have resources for college to giving our money to the causes and candidates we believe in. But in order to get more, you have to make your case. That means doing the research to know what a job like yours should pay, or what a business like yours should charge. (Sites like Payscale.com and Glassdoor.com can help.) Then, unapologetically ask for more while pointing out the additional value you’re bringing to your employer or clients. Our favorite gender wage gap-eliminating phrase: “Can you do better?” Know Your Money Type.
Have you ever wondered why you are the way you are with money? Why you have trouble spending it even if you’re sitting on a flush cash cushion, or why it flows through your fingers like water? Here’s the deal: Everyone has a Money Type , a money personality, that was largely formed during our childhood. It’s not what your parents taught you; rather, it’s what you absorbed and what you felt about money.
As inflation eats into every dollar you bring into your wallet and a volatile stock market leads investors down dangerous rabbit holes, it’s even more important to understand your Money Type in order to shield yourself from your lesser impulses. How do you do that? Start by asking yourself some probing questions: What was the atmosphere like in your childhood home? Was there stress every time a bill dropped? Was there tension rather than joy around the holidays? What money messages did you get from your mom or dad? Even better, take our Money Type personality assessment —it will give you a clearer picture and a set of directions to follow specifically for you. Particularly right now, understanding where we come from with our money is a must. Because while you can’t unsee your childhood, you can overcome your financial hang-ups to live a richer adult life. Got Debt? You Can Still Have a Life.
The old thinking was that you had to abolish your debt first, then you could focus on the future. Now we know it’s better to both pay down your debt and save for the future simultaneously. Why? Because those early years of saving and investing are far too valuable to leave on the sidelines while you’re wailing on those student loans.
So here’s the playbook: Put every next […]