Slay Your Career, Slay Your Finances: 3 Money Mistakes Ambitious Women Make (and How to Fix Them)
Calling all working ladies!
Crushing it at work is an amazing feeling. You're driven, you're achieving, and you're on your way to building an incredible career. But let's be honest, our finances can often times get pushed to the back burner in the face of that next promotion, your full and fun social calendar, or that never-ending to-do list.
The truth is, financial security is key to long-term success and happiness. And for career-driven women like us, there are a few common money mistakes I see us making that can hold you back from achieving your financial goals.
Mistake #1: The Paycheck-to-Paycheck Trap
Just because you're a high earner doesn't mean you're immune to this. The constant hustle can make it easy to fall into the cycle of spending every dollar you earn. The problem? Unexpected expenses, career changes, or even a temporary setback can leave you scrambling.
The Risk: Financial instability. A single financial hurdle can derail your progress and create significant stress.
The Fix: Start with a budget (I know, I know)! It may sound restrictive, but a good budget is actually a roadmap to your financial freedom. Set a weekly money date with yourself and your accounts, and track your income and expenses for 30 days to see where your money goes. Then, categorize your spending into needs (rent, groceries), wants (entertainment, dining out), and savings/investments. Once you have a clear picture, allocate funds accordingly. Remember, budgeting isn't about deprivation; it's about taking control and knowing exactly how much is coming in, as well as going out.
Mistake #2: Relying on Employer Benefits Alone
Yes, retirement may seem like a distant future, especially when you're focused on climbing the corporate or entrepreneurial ladder. But the power of compound interest is a real thing. The sooner you start saving smart, the more your money grows over time.
The Risk: Running out of money in retirement. Social Security alone will not be sufficient to maintain your desired lifestyle. And classic retirement vehicles have hefty taxes when you retire!
The Fix: Start small, but start now. Many companies offer employer-sponsored retirement plans with matching contributions, so take advantage of that free money! Do some research on your options, like IRAs for the self-employed, and prioritize setting up automatic contributions so you "pay yourself first" before you even see the money. Work with a licensed professional who understands advanced planning strategies so your hard earned monies are entirely yours and not Uncle Sam’s.
Mistake #3: Not Negotiating Your Worth
You deserve to be paid what you're worth, and admittedly, asking for a raise can be intimidating. As women we often undervalue ourselves compared to our male counterparts, leading to a significant pay gap over our careers.
The Risk: Leaving significant money on the table. Negotiating your salary can have a massive impact on your long-term financial picture.
The Fix: Do your research. Know your market value by researching industry averages for your position and experience. Prepare a strong case highlighting your accomplishments and the value you bring to the company. Practice your negotiation skills and be confident in asking for what you deserve. Always ask for a number higher than you’d like and be prepared to ask why the number they’ve offered is on the table.
Remember, financial security isn't just about having money in the bank; it's about having peace of mind, a lifestyle you are thrilled with, and the freedom to pursue your goals. By avoiding these common mistakes and taking charge of your finances, you can fuel your incredible career with a solid financial foundation.
Bonus Tip: Financial planning doesn't have to be overwhelming. Consider seeking guidance from a qualified financial professional (like me) who can help you create a personalized plan for your unique circumstances and goals.
So, go out there, slay your career, and slay your finances too! You've got this.
