That's On Me - Women & Finances

Author: Jamila Brown (Co-Founder 5 Minute Career Hack)

#1 In 2022, women made only $0.82 for every dollar a man-made (Payscale Gender Pay Gap Report 2022). 

#2 AAUW the simple truth about the gender pay gap stated, “The gender pay gap is not estimated to close until 2111. Broken down by race, the gap for black women is not expected to close.”

#3 Income Insights: Gender Retirement Gap by TIAA in 2017 stated, “For a man and a woman to have equal savings in retirement, a man would need to save 10% of his salary, but a woman would need to save 18% of her salary.”

As we celebrate Women’s History Month let’s put the story together for women and their finances:

• Women make less.
• Women work less total time over the course of their careers.
• Women lose more holding cash due to inflation.
• Women get lower returns on what they do invest.
• Women spend more on healthcare.
• Women live longer.
• When women survive their spouse, they live on average another decade when reaching age 65.

7 factors compounding against women as it relates to their financial well-being over their lifespan. 

Now what? What do you do with this information? How do you hack this data?

#1 Know your numbers

#2 Know your vehicles

#3 Know your dates

Let's dive in...

#1 Know your numbers

How much do you have saved for retirement, in your savings, in your piggy bank, etc.? 

And know the rate of return for each. 

#2 Know your vehicles

Which savings/investment vehicle is going to get you to your desired destination comfortably? 

You don’t want to be stressed out that your vehicle will not get you from point a to point b.  Understanding the vehicle or combination of vehicles you want to use is vital. Some examples include the 401k, Roth IRA, individual brokerage, and custodial accounts for children. You can learn more about it directly from the IRS at irs.gov.

You are the only person that will 100% look out for you, so you must be informed to some level to protect my interests and goals.  

#3 Know your dates

When do you want to retire? Not the Social Security age, not the 401k distribution age, the IRA withdrawal age, or your company pension retirement age…

But when do you want to retire or be free to choose to work or not?

I want you to prioritize what you want and not think about the money that you have or do not have. Just think about what you want. Dream big and take your time to let that sink in. Then you can get working on the plan to make that vision and dream happen for you. For those with children, you need to jot down the dates/years until your children go to college and complete. 

You are getting prepared to have the conversations with all parties that need to be involved with your Freedom Team:

CPA, financial advisor, 401k administrator, Broker, your spouse, your children, etc.

While the data that I provided was very specific to women and all the men listening will share with every woman in their life personally and professionally… 

These hacks apply to you as well. In addition, know that there is a large disparity for Black individuals both women and men. 

There is a fight to address many inequalities and the work those individuals are doing to push that fight forward is amazing but hard. You must prioritize yourself and your family in your career, compensation, and financial future. No one is going to do that for you. You cannot expect anyone to do that for you. In my Yella Beezy voice, That’s On Me!