Financial Feminism: How to be Financially Free

FINANCIAL FEMINISM

During this global pandemic, I’ve had a lot of time to reflect on my past and my future. I’ve overcome some major financial challenges, from self-funding my entire college education to getting laid off from my well-paid dream job, and others that I haven’t even had the courage to write about yet. Although I’m far from perfect, I’ve learned a lot about myself from the mistakes I’ve made.

I wanted to share a few lessons from this journey that I hope will encourage you to take control of your financial future. We’re often told to focus on being “marriageable”, which misguidedly puts our fate into our partner’s hands. While I think it’s great to have a partner that supports you financially, we shouldn’t have the expectation that they will. We need to find the power that already exists within us, and let that drive us to becoming the best version of ourselves.

Create a budget.

Having a budget isn’t as scary as it seems. A budget empowers you to stay on top of your finances and gives you more clarity to make decisions. Write down all your required expenses and list off the cost for necessities such as rent/mortgage, credit cards/loans, utilities, and food first. From there, you’ll be able to have an idea of what you can afford for your “fun” budget. You can create a budget on Google sheets or use Mint, a personal finance app.

Setup autopay on all your bills.

You’ll have one less thing to think about. Make sure these bills are deducted from your budget first since these are non-negotiable payments (unlike your fun/travel budget). Setting this up sounds trivial, but these automations will simplify your life and bring you a little more peace.

Use apps to monitor your spending.

Mint is a tool where you can link all of your bank accounts and visualize your finances in one place. If you don’t monitor it, you can’t measure it. Sometimes looking at your monthly statements is great, but having a way to compare and analyze transactions is live-changing. It’s a pain to set up at first because you have to link all your accounts, but once you get over that hurdle, you’ll have much more transparency into how much you’re actually spending. If you’re concerned about your privacy, make sure to use Keeper to safely store your passwords and also use 2-factor authentication for as many financial websites as possible to secure your account.

Track your credit score often.

I have the Credit Karma app installed on my phone, and I check it every 2 weeks to make sure all the transactions are mine. You are entitled to one free credit report every year from each of the 3 credit reporting agencies (Transunion, Experian, and Equifax). To get the most out of these benefits, set a recurring annual reminder on Google Calendar for each company at different points in the year (e.g. January for Transunion, May for Experian, and September for Equifax).

Match your company’s 401k offer.

You’re essentially losing free money if you don’t match up the full offer your company provides. For example, my company offers a 10% match, so I maxed that offer. If I received $100, that means I would be putting away $10 each time, and my company would give me an extra $10, totaling at $20 saved. This extra amount will gain compound interest over time and can make a big impact over time.

Have an emergency savings account.

Boy, I really learned my lesson the hard way on this one. When I got laid off for the first time, I was not prepared but was fortunate enough to receive a severance. Although I’m an eternal optimist, it would’ve given me peace of mind if I had prepared for unexpected expenses. You should prepare for at least 1 month of expenses saved up, but 3-6 months is suggested (depending on whether you have any debt or not).

Don’t let debt overwhelm you.

Many of us have debt from college or having to take parental roles for our immigrant parents. You can take responsibility for your debt without letting it consume you - although the weight feels heavy, you can find peace knowing that this is only temporary. Do your best to get the lowest interest rates and pay off more than the minimum payment whenever possible. You can also speak to a debt counselor to assist with finding better lending terms based on your income and existing expenses on nfcc.org, a national non-profit financial counseling organization.

Start investing early.

It’s totally normal to be unsure of what stocks to pick or how much to start off with. Having worked in the financial services and financial technology industry for 8 years, I know first hand how complicated finances are - and the unnecessary jargon that makes it harder to learn. If unsure how to get started with investing, do some independent research first and look for websites that do reviews. A few of my favorite women-led finance education websites are Ellevest Magazine, So Money, The Financial Diet, and The Balance.

Although this list seems extensive, don’t let perfectionism stop you. Remember that change takes time and that progress is an essential aspect of your financial journey. It may not always be linear, but every bit of education and experience will empower you with the confidence to make better decisions. I hope these tips guide you through your journey to becoming financially free and give you the peace of mind that you’ve been seeking.