3 Lessons For Women: How To Empower Yourself Financially

On a recent girl’s night out my two best friends and I gathered for dinner and engaged in our usual discussion about work, politics, culture, new things we’ve discovered that we’re loving, and updates on what’s happening in our lives, which were nothing out of the ordinary. But on this night, a new topic found its way into our conversation: money.

One of my friends had started a new job and the topic of savings arose; suddenly we all tensed up. “How much have you saved up?” I asked, feeling as if I was crossing a forbidden boundary. “I’m not telling you, it’s embarrassing.” We quickly changed topics. For a few moments we were completely incapable of talking candidly, as we have for the past 16 years.

Usually nothing is off the table with us: sex, health problems, relationship concerns, anything, no matter how sordid, icky, or complicated, we discuss it – often quite proudly with onlookers listening in. But money is a sore spot. We’re taught at a very young age to avoid the topic: “Never ask how much someone makes,” said, well, everyone. As women, it’s just not something we discuss, unless it’s somehow related to who we’re dating or our shopping habits.

Money is a feminist issue — and yet, women are still reluctant to talk about it.

But this is how a patriarchy operates — it’s designed to keep women oppressed by keeping them poorer (and thereby giving them less options and freedom) than men. Part of that is paying women less for the same work, charging ‘luxury tax’ on things like tampons, charging women higher rates for just about everything from haircuts to healthcare, and making talking about money, salary, and savings taboo for women. Together, as woman who want equal rights and freedoms, we must empower each other to open up about money and regain control, so that we can have power over our finances and future.

Seriously — It’s time to start talking about money! Come on — You can admit it. You love money. I mean really — who doesn’t?! We all want more of it.

Today, women account for 52% of the world’s population and influence 75% of all purchases. Women worldwide represent the main source of income for 30% of homes, and 48% of female workers contribute half — or more than half — of the household income. Yet for every one female millionaire, there are four men to rain on her parade. What gives?

From childhood we are taught that while we shouldn’t discuss money, going shopping (ie. lowering our bank account and putting our money into the pockets of mostly male-owned corporations) is the way to get over a breakup, bond with girlfriends, or simply spend a Saturday. And male-written fairy tales like Cinderella teach girls that men are the moneymakers and women are the booty shakers, so to speak. Through adulthood, shows like “Who Wants to Marry a Millionaire” give us the idea that catching the man means catching the cash.

But forget marriage! There are better ways to gain financial freedom rather than marrying a rich old man. Besides, if it’s not really your money, then you still don’t have financial freedom. So many women are all too willing to hand everything over to their husband — and when he leaves, so does their financial security. And then there’s the issue of your self-respect. Oh yeah, that.

Life is fickle. Circumstances beyond your control could rapidly change your life, whether it’s divorce, death, pregnancy, losing your job, needing to move, unexpected bills, etc. There are a lot of good reasons for women to be financially prepared.

I get that learning about money management sounds a lot like homework (ick), and that financial stuff and investments can be… well… kinda intimidating. Beyond the fact that it’s all tediously complex, I, like most people, have to resist the tendency to tune out when my husband starts talking about investing in securities, the stock market, or other income earning assets. Without the help of a great financial advisor, making investments can be a daunting task. But luckily, these aren’t the only kind of investments that can help to secure your financial future.

Many women, at every level of success, have a very distant, unattached feeling towards money, coupled with a very personal anxiety. And eventually this feeling catches up to us.

Here are some ideas to help you take back the power:

Use financial companies that put modern women first

We’ve all gotten that credit or debit card we were going to use to “build credit” or “cover emergency expenses,” only to use it to splurge on items we just had to have. Those slightly-over-budget OTK boots? Check. That Equinox membership we almost never use? Check. That $40 lipstick that’s probably poisoning us? Check.

But while we knew we would have to pay some fees or interest on these purchases, what we didn’t know is that we would be charged a tiny fortune in hidden “service” and “luxury fees.” They add up — fast! This is money that belongs to us but is being taken from us without our knowledge because many banks and credit card companies have not been up front with us about it.

But this is just one example. There are literally dozens of other examples of avoidable hidden fees from banking products and services we are buying or signing up for that are being taken—some might say stolen—from us. The average adult in the U.S. is paying nearly $1,000 in these types of hidden fees every year that are charging us without our knowledge. And if you remember my earlier example, saving those fees could add up to over half a million dollars by the time you retire. That’s right!

Now, before you go into an “eyes-glaze-over” phase on me, hear me out girl.

Here’s how can you avoid letting hidden fees run you dry:
By choosing your financial services providers very carefully.

My favorite bank is Radius Bank.

Radius is an online and mobile bank that is all about empowerment and transparency. They don’t charge hidden fees — instead, they give you interest, 1% cash back on purchases, plus unlimited worldwide ATM fee reimbursements! Yowza! Plus, they empower women with online video courses, and have cool, built-in budgeting features.

They also have a mobile app that allows you to quickly send money to anyone, turn your bank/credit card on or off remotely, add geo restrictions, set spending caps, see your budget, get alerts, make mobile payments, and more. Misplaced your card for the upteenth time? No worries! Just switch it off in the app until you find it. Prettttyyy cool! And it only takes 5 minutes to open an account online.

Minimize and Track

As glam girls on the go, we’re exposed to so many fabulous products and services that we often have too many choices to choose from. But the problem is, not every product and service is good for us, even if it is good to us.

I know, I know: I sound like such a MOM. Ug. But let me explain what I mean.

Skipping those three trips to Starbucks a day, or packing a lunch instead of buying one, will save you almost $20 dollars a day; invest the $600/month you saved, tack on compounding interest, and voila — in 30 years you’ll have over a million dollars saved.

Wondering how we came to that? It’s easier than you think. Check out this handy calculator. All that saving, if invested well with a good financial planner, could add up to a lot more than you imagined it would, over time. Just imagine what you could save if you skipped those a few (admittedly, unnecessary) seasonal Montclair or Prada purchases and invested the money instead!

It sounds banal, but it’s time to start taking full responsibility and accountability for your spending.

Step #1 is to set up a budget. It’ll help you figure out where all your money is going and where you can cut back a little. Until you step back and properly assess your financial situation, you won’t be an effective saver.

Radius Bank‘s banking platform has built-in budgeting features, and doesn’t drip-drain your bank accounts by charing hidden fees. Instead they drip money IN and help your savings grow by adding interest! Ka-ching!

Step #2 is to emotionally commit to living a low-waste lifestyle. There’s a big movement amongst bloggers and other influencers to lead a less consumer-focused lifestyle. Minimal is the new luxury! Between the book The Life-Changing Magic of Tidying Up (seriously, read it!), which caused an absolute sensation, and all the news about the zillions of pieces of plastic packaging in the ocean, this is a trend that’s here to stay.

If you want to build (and keep) your financial worth, don’t spend much of your money on non-appreciating assets like luxurious clothes, cars, toys, yachts, or a giant collection of designer handbags. Before you buy an item think, is it a want or a need? What about that gym membership, club renewal, or that third pair of cute little black heels? Cancel your $150 cable subscription and get Netflix instead. Use my tips to shop on eBay and get your heels for 90% off. Cut and color your hair at home to save on expensive salon fees. I do!

Radius offers a free Money Management Academy, and I highly recommend you check it out. It’s full of useful info that could make the difference between you saving enough to upgrade to the house of your dreams, versus getting stuck with ‘that house that was all you could afford’.

Once you’ve mastered the art of consumer minimalism, and seen how much money you were actually wasting of stuff you don’t need, it’ll be easier to spend less and save more. As they say — a penny saved is a penny earned!

Invest in your future

Think about how you can improve your skills and knowledge to move up in your career and then create benchmarks to meet specific goals. Even if you haven’t decided which path you want to take, it doesn’t hurt to start building the foundation now.

Here are a few ways that you can work towards securing your future income:

Continue Your Education

Your current skill set may be enough to get you in the door of a company, but building upon what you already have is the key to career progression. Invest in continuing your education (you can learn new skills online for free or cheap) and make an effort to stay abreast of the emerging trends in your desired industry.

Here are a few topics to consider, that would help any woman:

• Public speaking. The ability to address a group of people without nerves and anxiety comes natural to some while others stumble to get past pre-presentation jitters. But learning to control your nerves and speak confidently in front of crowds (or your boss) just might help you get that promotion.
• Business communication. Knowing how to compose professional-sounding communication is paramount in the workplace, whether you’re collaborating with others on a project, conveying a message to your supervisor, or reaching out to customers. We’ve all been on the receiving end of unprofessional emails. Would you hire their author? Didn’t think so.
• Basic money management. Many young professionals overlook the need for financial literacy courses to help them make their money work for them. And it usually doesn’t work out in their favor after they’ve spent years distracted from their work due to money woes or bounced from job to job in desperate search of more money to support their poor spending habits. Radius Bank offers a series of videos to help you understand banking and money management. And remember, there is no such thing as a stupid question if you think that the answer will help you better manage your finances. After all, none of us – from the hedge fund master of the universe to the neighborhood cookie baker in her 70s – was born knowing the difference between a stock and a bond.
• Identity theft and online security. Make sure you’re educated about how to avoid identity theft (here are 8 simple ways to prevent identity theft), since the Equifax hack has made it even easier for criminals to take out loans in your name and steal your money.

Take Advantage of Networking Opportunities

By joining a professional organization, even at the collegiate level, you’ll have access to knowledgeable individuals who can serve as mentors and valuable connections should you need a professional reference or a job hookup in the future. You’ll also be aware of industry functions, luncheons and other networking events that could potentially open the door to employment opportunities.

Start a Side Business

That cuticle cream you’ve concocted or that special cold and cough mixture you brew up each winter could be a goldmine waiting to happen. If it works for you and you love it, try giving samples to friends and family and get some feedback. Your crazy homemade creams could be worth millions!

Victoria Knight-McDowell, a teacher, came up with a cure for the common cold, right in her own home. Her formula includes Vitamin A, C, and E, and seven herbal extracts among other secret ingredients and she called it Airbourne. Within a few short years, her concoction had a revenue of $24 million!

Spanx was started by Sara Blakely, a then fax-machine salesperson who had saved $5000 and was full of determination. She did everything herself, from legal work, package design, to shipping: “I patented it myself — I bought a book on patents and trademarks because patent attorneys wanted between $2,000 and $5,000 to do it for me. I was creating the packaging on my friend’s computer with her help.” Now Blakely is a billionaire and heads her undergarment empire (she owns 100 percent of the Spanx brand), overseeing the work of over 100 employees, 90% of whom are women.

One of the most important steps of starting a business is opening a business bank account, so you can keep your business and personal finances separate. Radius Bank has a whole setup for business women that offers cash management and budgeting features, easy remote deposits using the mobile app, and you can even get a business loan from them. All without the litany of hidden fees that other banks charge.

So remember: there’s no time like the present to get educated and empower yourself financially!

Women have worked their asses off to liberate themselves, yet taking power over our financial freedom has been harder to conquer. Statistically, women tend to put their own financial needs on the back-burner, because they are so busy earning a living and taking care of their families. Just like the patriarchy would want it, while men squirrel away money in bank accounts their wives don’t have access to, or spend on themselves, women spend on their family. While women are very comfortable with day-to-day spending and budgeting, they tend to give their husband’s control over longer-term financial issues, such as retirement and investments. This makes us vulnerable when major life changes happen (like divorce).

There’s nothing wrong with wanting to control your long-term finances, or to talk about how much you and your friends make, save, and spend. When a friend comments that they like my shoes, I often brag about how I got them on the cheap on eBay. To me, saving money is cool! As women, we need to have a non-judgmental, very logical, and vocal relationship with money. Money is a key component of our lives that deserves the same analysis, concern, and proud discussion on a girl’s night out.

This is a sponsored conversation written by me in partnership with Radius Bank. The opinions and text are all mine.