Money Talk: The Pathway to Financial Freedom

Financial literacy is important for your future freedom and retirement. According to studies conducted by CNBC, approximately 1 in 5 working women have nothing saved for retirement. On top of that, 14% of women admit to not knowing how much they have saved. This is due in large part to the gender wealth gap present in modern society. In fact, according to Pew Research Center analysis, as of 2018 women earned 85% of what men make.

The gender wealth gap is only half of the problem. The other half is centered around the lack of conversation about finances. Rather than encouraging an open and healthy dialogue, talking about money is highly stigmatized. It’s considered impolite or taboo. And no matter how well-intentioned these motives may be, it’s all a load of crap!

It’s time to break the patterns of behavior blocking your next level of financial freedom. That starts with an open dialogue about the elephant in the room—money. And don’t worry, we promise you won’t be struck down by lightning for mentioning it out loud!

Discussing financial wellness is critical for many reasons. To focus on building the new, it’s important that we first acknowledge, name, and hold ourselves accountable. If you’re still on the fence about discussing finances, here are three reasons to shatter the silence. 

 

Break Generational Curses 

It’s been ingrained in us since childhood that talking about money is a huge no-no. But what gives? Despite your avoidance, silence does not protect your financial stability. In fact, it can cripple it.

As children, our parents are our first role models. Their habits, thoughts, and opinions frequently become our own. Often, this happens without us even realizing it. That includes taking on their financial habits, however healthy or unhealthy they may be.

It’s common for saving, credit, investing, and budgeting to be excluded from everyday conversations growing up. As parents seek to shield their children, young people are frequently left in the dark on how to successfully manage their money and accrue wealth. Oftentimes, it isn’t until our early 20s when we get a taste of independence that the responsibility of our finances hits full force. 

With minimal financial knowledge, this can quickly lead to a future riddled with bad credit, no credit, debt, and little to no retirement planning. Instead of building wealth and setting healthy money habits, young people frequently spend more time digging themselves out of financial trouble. And this isn’t their fault! In fact, it isn’t uncommon for these cyclical patterns to have been inherited from parents and legal guardians.

You can combat this recipe for disaster by introducing conversations about money as soon as possible. Your family’s poor money habits do not need to become your own. Remember—where you come from may not be where you’re headed. Instead, aim to break these patterns of behavior by continuously educating yourself and focusing on the future. You can achieve this by: 

  • Setting realistic, achievable financial goals
  • Reading books written by top wealth experts
  • Establishing and building a strong credit score 
  • Opening a retirement account as soon as possible
  • Investing in the stock market to compound interest
  • Attending a class or seminar on healthy financial habits
  • Always having 3-24 months of income saved for emergencies

Once you get going, you can help other friends and family get their own financial habits in order. Your strong precedent is sure to inspire others to follow. For more information, refer to Smart Women Finish Rich: Here’s How to Break the Generational Curse of Being Bad With Finances.

 

Verify You’re Earning What You’re Worth

Talking about money in the workplace can feel terrifying, especially since you may work in a setting where it is avoided or discouraged. In reality, a respectful, transparent conversation about compensation can be beneficial for everyone. By doing research and being candid with other peers in similar roles, you can determine if: 

 

  • You’re being underpaid 
  • You should ask for a raise
  • You can combat the Gender Pay Gap
  • Other workplaces offer better benefits 
  • It’s time to seek out other job opportunities
  • You can advocate for higher pay as a group
  • Your income is aligned with industry standards

Contrary to popular belief, open conversations about wages with coworkers while still treading lightly is 100% possible. There is no need for shame, jealousy, or fear. Here are some ways to make the exchange more comfortable for everyone:

  • Ensure it’s a private conversation with a trusted coworker → Walking up to a random colleague and talking money isn’t advised. Instead, make sure the conversation is one-on-one and with a coworker you trust.
  • Promise to keep the information confidential → Trust goes both ways. Make sure your coworker knows that the information they share with you won’t be shared with others under any circumstances. This will do lots for their peace of mind.
  • Start by sharing your own money-related experience as an icebreaker → At first, the subject area might feel fragile. Inspire your coworker’s trust by sharing your own salary or money-related experience to warm up the conversation and get the dialogue going.
  • Initiate the conversation outside the workplace → The last thing you want when talking money with a coworker is for the conversation to be overheard by a boss or supervisor. Arrange for the talk about salary to happen outside of where you work.
  • Complete outside research regarding industry standards → When you initiate the conversation, be prepared with research on how much other industry experts with your level of experience make compensation.

For more information on why talking about salary with coworkers is important, check out this resource. 

 

Stop Worrying What Others Think 

The opinions of others don’t help your retirement plan or pay the bills! You may encounter people who don’t want to talk about money on your journey to financial freedom. In fact, some of them may even be your family. Work towards being less reactive and more proactive. You don’t have to feel guilty for doing well, either. The best thing you can do is focus on yourself and your next best move. In the famous words of Socrates, “The secret of change is to focus all your energy not on fighting the old, but on building the new.” We couldn’t agree more.

 

We know that getting your finances in order can feel like a lot, especially in an unstable economy. Remember that there are resources out there to help you along your journey. Download budgeting software and apps  to your phone or computer. You can surround yourself with people on a similar path or hire an expert to help map out your goals. When your motivation dwindles, consult our blog post on how to conquer ANYTHING. You can also access our blog post on how to Turn Luck into Opportunity here.