Is making money moves an issue for black women?
We often face stigmatization, being confined to a box that labels us as financially unsavvy. Fortunately, as we observe the financial landscape, we find the opposite to be true. Black women are now making significant strides in the world of finance, challenging the prevailing narrative, and we express our gratitude for their accomplishments. We witness women leading corporations and occupying positions in the boardrooms of financial institutions, serving as examples for the rest of us.
Taking charge of our financial independence begins with self-education and transforming our perspectives on money. I am proud to assert that women excel in investing, outperforming men in many aspects. Our potential shortcoming lies in embracing substantial risks that can yield long-term benefits. We must embrace audacity and seize control and begin to confidently make money moves that will allow us economic independence.
There are a few things that we must take into consideration as we recondition our minds and prepare ourselves to move toward financial independence using our recommended money moves:
- We are living much longer than men.
- We earn less than men.
- We take fewer risks.
- If we are married, we usually leave the finances to our spouses, which can go against us if we get divorced.
- We are the ones who spend.
The above five facts point to how we will have to change our mindset and begin making money moves and decisions that benefit us and our well-being.
If we consider the fact that we are living longer, it becomes evident that we will require a greater amount of money in the future to maintain our current lifestyle or even achieve a better one.
Although we earn less than men, there may be a positive shift towards gender equality as more companies start taking this matter seriously. However, should we leave it solely to the passage of time, or should we take control of our financial situation now? Perhaps we can explore multiple streams of income, allowing us to potentially retire from the traditional 9 to 5 work schedule.
Given our inclination to take fewer risks, it is essential for us to empower ourselves through education and become financially literate. It’s time to enroll in financial school and gain the knowledge we need to thrive. The financial world is an exciting one—let’s dive right in. Speaking as someone who transitioned from a 9 to 5 job to become an investment expert, I still engage in investment endeavors for my own benefit and assist others when needed.
Number 4 holds significant importance for us. I have witnessed and heard of numerous instances where women have allowed their spouses to keep them in the dark about financial matters. Ladies, it is crucial to stop relinquishing this weighty aspect of our marriages to our partners. Even if the man is currently taking care of our financial needs and we are living comfortably, we must understand the intricacies of it all. We cannot afford to live in ignorant bliss, as the outcome could potentially be financial distress if the marriage sours.
Lastly, and certainly not of lesser significance, we are often the primary spenders. If we are the ones spending the most, shouldn’t we strive to gain a deeper understanding of financial matters?
With that said, here are the 5 money moves we are recommending:
STOP KEEPING UP WITH THE JONESES
Let’s be honest with ourselves and acknowledge our capabilities. There’s no need for us to be anything other than our authentic selves. Unfortunately, we have to contend with the influence of social media, and it can be a challenge. We often find ourselves scrolling through our feeds, comparing our lives to what we see, even though most of it isn’t a true reflection of reality. We then start desiring more. It’s time for us, ladies, to break free from the trap of comparison, love ourselves as we are, and recognize what truly matters to us. Is it about keeping up with appearances, or is it about living life on our own terms? If we can’t afford something, let’s not go into debt to obtain it. Identifying our priorities should be at the top of our list, and then we must structure our finances and live accordingly.
It’s often said that we, as black individuals, tend to be consumers rather than investors. Let’s be part of the group that is changing that narrative. We can still enjoy a comfortable lifestyle, but we must ensure it doesn’t come at the expense of accumulating debt. Let’s choose to invest more wisely. It’s the smarter choice in the long run.
MULTIPLE STREAMS OF INCOME
Whether you are employed or self-employed, it’s important to have a mindset that constantly asks, “What else can I do?” You possess numerous gifts that shouldn’t be hidden away but utilized for your own benefit and for the betterment of God’s kingdom, considering that these gifts were given to you. Start exploring alternative ways to earn income. If you have a knack for writing, consider writing articles and getting paid for your work. If you have a passion for fashion, become a fashion blogger or offer services to help others with wardrobe coordination; there is a market for such services. If baking brings you joy, create pastries and sell them. There are countless dormant gifts within you that can be monetized. Many women already own multiple businesses, some of which generate income even while they sleep. Become one of them and tap into the entrepreneurial spirit within you.
CREATE A BUDGET
One crucial step towards reducing indebtedness, increasing savings, and ultimately expanding investments is to create and adhere to a budget. This holds particularly true for women who aim to structure their lives in a financially responsible manner. Budgeting is also essential for those working towards significant milestones, such as purchasing a home. While budgeting may pose challenges for some, it’s helpful to approach it from a business perspective. Businesses create budgets to maximize profits over a projected period. Similarly, viewing your life as a business is a wise move that enables you to enhance your investing capabilities within any chosen timeframe. Even if your earnings increase, which often happens, it’s important to remain committed to your budget. This wise approach ensures financial stability and empowers you to make informed decisions.
EDUCATE YOURSELF
In this scenario, Google can be your best friend. Take advantage of the vast resources available online to educate yourself about investing. Once you have a basic understanding of investing, consider seeking the advice of a financial expert at a local investment bank. They can provide personalized guidance and help you secure your financial future. By having a foundational knowledge of investing, you will be better equipped to understand and evaluate the recommendations and solutions presented to you. This will enable you to maximize your investments and create a portfolio that aligns with your goals and objectives. Educating yourself is key to gaining the necessary knowledge to make informed financial decisions and increase your wealth effectively.
UTILISE THE COMPOUND EFFECT
If you belong to the millennial or Gen Z generation, or if you are a mother of one, then compounding is an ideal strategy for you because it requires time to yield significant results. Now is the perfect moment to embark on the path of wealth creation. Consult with your advisor about selecting a long-term investment option and begin contributing a specific amount on a weekly or monthly basis through an automated payment system. Automating your deposits will eliminate the hassle of remembering to make regular contributions.
Consider investing in a unit trust or a diversified portfolio of individual stocks, which carry a higher level of risk but offer long-term growth potential. To visualize the power of compounding, you can utilize online compounding calculators that demonstrate the growth of your investments over time.
It’s worth noting that even if you fall into an older age bracket, you should still consider including long-term investments in your portfolio. Just be aware that younger individuals have more time for compounding to work its magic compared to those who are closer to retirement.
We encourage you to start taking your financial future seriously. Women excel in various areas, and investing is no exception. It’s time to shift your mindset and recognize that money moves that are responsibly managed will be a force for good. Responsible financial management has the power to improve not only your own circumstances but also the lives of your loved ones. When we empower ourselves financially, we have the ability to create positive transformations within our communities and in every sphere we inhabit. So go ahead, makes those money moves.
To everyone, regardless of gender, it’s important to understand that the effort you put into making wise financial decisions today will yield great benefits in the future. Embrace the journey of making happy money moves!
