Hands up if you actively manage your savings? Do you contribute to a pension or other investment? Do you relish talking and thinking about money and how you can maximise your financial position?
If your answer to these is a resounding “NO!” You’re not alone. The fact is that – for so many reasons – women earn less, save less, invest less and, as a result, are often left with less when we retire. The good news? You can start to change your money story right now.
1. We all hold money stories
It’s human nature. We are hard-wired with from childhood, through society and the media to hold certain money beliefs: there is no getting away from them. These stories impact us in so many ways. What we can do is acknowledge and dissect stories, understand where they’ve come from and decide whether we want to carry on believing them.
2. Everyone has an income ceiling
Your income ceiling is a psychological limit we set for the maximum we feel we should earn. Often, this is based on the most that you have ever earned. Can you identify your income ceiling? Once you have identified your limit, ask yourself how would it feel to earn £1,000, £2,000 or £10,000 more than that? Does it feel uncomfortable? Impossible? Not ‘right’? Acknowledge those feelings and ask yourself what does your income ceiling say about you? How is your income ceiling hindering your progress towards your financial goals?
3. Your language matters
The words we use impact our beliefs. Using negative language around money will impact your current financial situation. Think long and hard before you tell yourself that you’ll never get out of debt, never get that promotion or that you couldn’t possibly earn that much money. Remember thoughts become things.
4. Future you will thank you for taking control of your money now
The gender pensions pay gap between men and women is 40%. This means the average woman will receive £85 per week less than her male counterpart; a figure that has grown by 85% since 2007. This is a combination of the gender pay gap in the workplace, not negotiating for better pay, not taking an active role in your money responsibilities and under-pricing yourself in your business. Coupled with the financial impact of any career break or part-time phase, the prospect of poverty in later life is very real for many women. The solution: make addressing your money issues a priority now. It doesn’t have to be big or bold gestures (though they can help). Small consistent actions that maximise your income alongside a wise financial plan work well too.
5. You got this
No matter your money mindset, it’s just a mindset. And mindsets, as we know, are something we all have the power to change.
Check out Michelle’s website at EqualityPays.co.uk and get in touch with her at [email protected]
Until next time!