- WealthEsteem by Grinnell Capital, LLC
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- 4 reasons WHY & 3 ways HOW
Do you have time for a quick chat? Good! How do you feel about money or more specifically managing your long-term finances? What about investing? Honestly? Is it scary? Do you feel overwhelmed? Unsure of what to do, so you just avoid it at all costs? Or do you just turn a blind eye & let your husband, boyfriend, or partner manage the finances? I’m here to tell you that I hear ya sister! I would have answered yes to every single one of those questions 2 years ago. I’ve been there.
And there are good reasons why we feel this way. Investing is not something we are taught in conventional schooling. It is also something most families don’t talk about at the dinner table. In fact, culturally, we are discouraged from discussing money at all with anyone. So it’s no wonder that by the time we earn our womanhood, we are not interested in careers involving money let alone taking ownership of our own money. Money, which makes the world go round, is kind of this existential thing we are conditioned to fear or ignore. So for today, let's forget about all the things we weren't taught, all of the societal conditioning, and let's just lean right on into owning-our-own-money. You in? Yes!
OK, time to pull on our Wonderwoman cape & get ready to soar. There are some highly compelling reasons why we need to leave the ignore-my-money-mindset behind us & buckle up for the I-own-my-money-future. I’m here to share with you some reasons why it is not only important that we own our financial decisions going forward but essential. I’m also here to help you figure out the HOW TO own-your-own-money TODAY.
Why Own-Your-Own-Money ?
1. Compounding Interest - this is fun to play with
This is likely a term you did learn about in school at some point. The basic idea is that your money can grow exponentially, rather than linearly. In other words, you take the money you worked for (the base) and let it work for you (when the base grows there’s a bigger base working for you, and so on and so forth). Now, this doesn’t work if you don’t have a growth component in place. For example, the cash under your mattress cannot grow exponentially because there is nothing there to help it grow (a mattress being a metaphor for your checking or savings account - you get it). But put a growth component in place & you will experience compounding interest. Think of your money (the base) as a seed, without soil, water, sunshine nothing will happen. But, if you add soil, water, sunshine before long you will have a growing, flowering, even fruit-producing plant. This growth component (or investment) can come in many shapes & sizes and it does not require a lot of money or a lot of skill to set up! See…. owning-your-own-money doesn’t have to be scary. If you are in the wealth accumulation phase of your life, meaning you are saving for things like your kids’ college tuition, retirement, or even a home purchase there are lots of ways you can increase the compounding interest of your money beyond the yield of a checking or savings account. We can touch on how & who can help you make those decisions in a bit…
2. Gender Pay Gap - it's big, like a $1,000,000 lifetime gap
It's hard to scroll through any form of media without reading a mention of the disproportionate representation of women on boards, in the c-suite, in leadership roles, in politics, etc. And even when we are in those positions there’s the ever-present gender pay gap. For every dollar men earn, women earn $0.77. Layer in our lack of confidence in investing our money & we have ourselves a real big disparity, like more than A MILLION DOLLARS. Sooo… people are talking about it, that's good (I guess), but a lot of the action behind the gender equality movement is out of our immediate control. There’s 1 thing we have direct control over right now, (we have the power 💪), & that is maximizing the way our money works for us! Making sure that the money we do have is growing & not collecting dust mites under our mattress (or checking account). Generally, women are less inclined to invest than men, but when we do invest we tend to outperform men. So the research is in our favor ladies! Let's put our money where our strengths are, sprinkle in a little or a lot of compounding interest, and the world is our oyster! Bye-bye to the portion of the gender wealth gap that we can control.
3. We are good at investing - I'll say it again
Expanding on the point above, many women rely on their husbands or partners to manage their money. But if we are better at it, meaning we get better returns, then why don’t we take it over? I mean, let's pass off laundry & grocery duty & own the money, honey! We can do hard things! And let me tell you this is not a hard thing. Overwhelming at first, maybe, but not hard, I promise! We CAN own-our-own-money and our families' on top of it, and trust me getting started is the hardest part, once you take that step you are on your way to full-money-Wonderwoman status.
4. Longevity - 69% of women wish they would have invested earlier
My final point & I will get to the HOW, statistics would say that we will live longer than our male partners. Another reason to start early, knowing where the money is, what it is invested in, and owning it, we are going to be around to enjoy it longer. US Men’s life expectancy is 74.2 and women's is 79.9, almost 6 years difference. At some point whether we outlive our partner, choose to leave our partner, or choose not to have a partner, we will be in charge of our own money. Why not start now with a proactive approach, rather than a reaction to a significant life event? Regardless of what a significant life event may entail for each of us, imagine owning-your-own-money and not having to worry about that one crucial piece of your new normal!
3 ways to Own-Your-Own-Money, TODAY
1. Join forces with your partner who does the long term planning
Have a conversation using some of the research I shared above expressing your interest & desire to be involved
Ask to be part of future meetings
Make sure you are spoken to in plain English (I can assure you it is POSSIBLE to be spoken to by a finance professional in plain English) and if they are speaking I’m-super-smart-and-I’m-proving-it-with-fancy-acronyms then ask questions! It is your right as a client to know exactly where your money is & what it is invested in, if you don’t understand, it is their job to educate you (in plain English).
Know where all of your accounts are (yours + the ones on which you are listed as the beneficiary)
Which firm
Account holder / Account number / Account type
Log in / password - if possible
General information about the investments
Offer up your perspective & opinion on where you want your money - remember statistically you are a better investor than a male partner
2. DIY it
Open an investment account
Transfer money from your mattress, checking, or savings account
Invest! There are many passive strategies that can give you a decent yield, just do a little homework, or reach out to us & ask for help!
3. Find a planner (more on this in a future post, but for now….)
Ask for referrals from friends or family members. Interview a few of them, and decide if you like their style. Remember that just because your friend/family member likes them doesn’t mean you have to.
Do your own research & interview a few, always interview, always at least a few
Reach out! As part of my day job, I interface with a lot of planners & there are some who I think do a particularly great job with women’s & couples' unique needs. I’m happy to connect you for FREE!
There’s so much more to share and just not enough space on this post. So stay tuned for more own-your-own-money thoughts, I already have another post brewing, like a french press. It’s my mission to make this money thing fun and easy for you because let's face it, money is FUN (and can be easy)!
Signing off for now…
XX
Dana
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IMPORTANT DISCLOSURES:
I am not a financial planner & this is not financial advice.
This information is a general publication that reflects our opinion and is not a specific recommendation to any one individual. You must consult your own broker or investment adviser for investment advice.
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