Does building wealth feel impossible to you?
If 63% of Americans live paycheck-to-paycheck (CNBC) and financial education is not a requirement in schools, it makes sense that wealth feels like a pipe dream for most people. When you take into consideration that women are paid less than men (Pew Research), it makes sense that women have a harder time climbing the socioeconomic ladder. It gets worse.
In 2021 Goldman Sachs reported that women of color hold 90% less wealth than white men. Whether this infuriates you or makes you feel numb, that’s a problem.
Why women of color should build wealth
Gender wage gaps, racial wealth gaps, and financial literacy gaps are proof that current systems are inequitable.
People who are from underprivileged or marginalized groups are less likely to be given opportunities to thrive, let alone survive. By sheer luck upon birth, a person can be handed a privilege that another person does not have. With systemic biases and higher instances of micro- and macro-aggressions in the workplace (and in life), success for women of color can feel unattainable at times.
While that’s understandable, being proactive about building wealth is necessary for women of color. We know that systemic inequalities are largely out of any individual’s control. However, we all have agency to manage our own finances and build wealth. The upside is that building wealth actually has impact beyond improving our own lives.
More wealth redistributed to historically disadvantaged groups such as women of color plays a part in wider scale change. As unfair as it is to take on the burden of improving society, wealth can enable access to more education, better working conditions, better medical care, more equitable and inclusive policies, and more.
How to kick off your wealth journey
Here’s a philosophical question: has the internet made human life better or worse?
That debate isn’t the topic of this post but what we can say is that the internet allows faster, efficient ways to distribute information.
The distribution of information on the internet has democratized some aspects of the financial world. Financial education, tools, and resources are now more accessible and within reach. Utilizing this information (with the caveat that we must learn how to filter out misinformation), can help women of color attain their financial goals.
Here are 3 areas you can focus on to kick off your wealth journey:
Money Mindset.
Do you believe that wealth is within reach for you? Do you have a good relationship with money? What thoughts, feelings, and emotions come up when you think about money or talk about money? What are some good experiences you’ve had involving money? And some bad?
A lot of our motivation is inspired by excitement and confidence. And a lot of our inaction stems from fear and discomfort.
If money is an area you struggle with, or if you don’t believe you’re capable of building wealth, start with the basics:
- Build self-awareness with money. Ask yourself the questions above. Maybe journal about them. Understand your thoughts and feelings around money and where they come from.
- Stop internalizing a lack of financial literacy. Did you grow up being educated on money at school? Or at home? Did you learn ways to make money, save money, and budget that work for your personality? Did anyone teach you to invest? If you weren’t given this information, don’t blame yourself. Replace negative self-talk such as “I’m bad with money” with “I wasn’t taught much about money, but I’m capable of learning more”
- Start believing. Believe that wealth is possible.
Financial Education.
It’s highly unlikely you’ve received a comprehensive financial education if you’ve stumbled upon this post. That’s not a diss on you! It’s just an acknowledgment that school hasn’t historically prepared students for managing finances. Following Wealth for Women of Color on TikTok and YouTube is one way to start. There are a ton of other amazing financial blogs, YouTube channels, and e-courses as well.
Are books more your cup of tea? Here are 5 beginner personal finance book recommendations.
Find A Community.
Grab a friend who’ll be your accountability partner, or find a community online. Since money is typically seen as a taboo topic, not everyone has someone they can talk to openly about money. Sometimes that’s for good reason–safety comes first. However, “you don’t know what you don’t know.” It’s hard to know what you don’t know if you aren’t exposed to information. And it’s hard to stay motivated towards your money goals if you don’t have anyone or anything holding you accountable.
