I have taken a break from writing over the last few months, but today I thought I would address a topic that a lot of men discuss, but women rarely chit chat about: money.
Even if some of us may have big jobs and a good education, we’re not often discussing our investment strategies, salary negotiations or retirement planning.
Over the past few months, I’ve been made aware of a few very unfortunate situations, where women have been left with financial stress when a few simple steps could’ve made the world of a difference. And I think it has a lot to do with us not talking about it. Unfortunately for many, talking money still feels taboo, and as a result women are often unprepared.
So let’s talk money.
There are a lot of resources out there, but they are either using so much jargon that only a financial planner could understand, or overwhelming advice usually preaching as a first step something like ‘building a life plan and financial goals’. Great advice, yes. But if that’s the first step, it’s quite daunting, and I’m not surprised many don't take it.
Full disclosure, I am not a financial planner. Perhaps just a professional woman with obsessive tendencies (you should see my finances excel spreadsheet), and a need to feel in control. So if you don't know where to start, here are the top 3 things I think you can actually do today to feel a bit more in control (and sleep better at night).
1. Have a credit card in your name.
If you ever need a loan (or a mortgage), you need credit history. You need to show potential lenders that you know how to handle credit and pay it back responsibly. The easiest way to do that is to get a credit card, use it once in a while, and most importantly pay it off before the due date!
“I already have a credit card and my name is on it”.
Are you sure? Or are you an ‘authorized user’ on someone else’s card (i.e. you are allowed to spend, but not liable for the debt). You need to be a primary account holder for your behaviour on this account to get reported to the credit bureaus and start building your credit history.
You can use Borrowell to check if you have credit history, and the health of your credit score. Easy to sign up, free and gives you a sense of where you stand.
2. Know your credentials, and log into your bank accounts/ investment accounts.
“Oh my husband does the finances”, “I don’t even understand this stuff”. Um. No. This is 2022. I’m not asking you to get an economics degree, but you can’t use the fact that someone else handles your finances to justify not having a sense of where everything is. Do you say “oh the teacher is handling my kids’ education, so I don't need to know how they are doing in school”?. Probably not.
Have the conversation with whomever is handling your finances, and just understand where your accounts are. Make sure you can log on. Maybe as a first step, just stare at the numbers. Google a few terms you don’t understand. Ask questions. And start building your knowledge little by little.
What’s the point in eventually building a future vision and financial goals if you don’t understand where you are now?
3. Make a will.
Did you know that if you are common-law, you may not qualify as next-of-kin, and thus get absolutely no inheritance? Or that if you don't have a will, the estate may be divided equally between you (if you are married) and your children, and if they are under the age of 18 they cannot access any of the inheritance until majority?
I know it’s unpleasant but it’s essential. Unfortunately life is not always sunshine and lollipops, and should the unthinkable happen, the last thing you want to worry about is your finances. Thankfully, gone are the days when you had to spend thousands of dollars meeting with a lawyer to write up your will. You can do it online for $100 through a platform like willful.co.
For some, $100 is a lot, I understand. But trust me, this is $100 well spent… if anything you will sleep better at night for the foreseeable future!
Just like with everything, the hardest part at times, is taking the first step!