IWD 2022: Refocus Your Finances To Empower Your Most Daring Dreams As A Woman

When it comes to finances and anything money related we tend to take a backseat. Eventhough studies have shown that women are seen as better investors than men, it’s tough to really wrap one’s head around the whole idea of being able to use finances as an empowerment tool. With some insights from Dilys D’Cruz Vice President of Wealth at Meridian Credit Union we take a look at how to make your money really matter! 

Here’s a hard fact. When it comes to money there were times where I had now idea where it went. I would just excuse it as one of the fun parts of being in my 20s. Then the 30s hit and I would keep using that excuse. Cue the 40s and hello, here we are again. By my mid-40s it was time to change my attitude. I started to actually care about my money and look for ways to make it work for me and not the other way around.

The tricky part is that before that financial epiphany hit, I was too busy working for my money. Bills had to be paid, of course. And that designer bag isn’t going land in my closet by itself. Looking back, the biggest thing I noticed is that the only money conversations I would have with my friends and colleagues was about spending it, not saving it.

In hindsight having been actively investing for a few years, the idea of wanting to have my finances be a source of inspiration and empowerment is more important than ever.

As the Vice President of Wealth for Meridian, Dilys D’Cruz shares some intersesting tips on how we — as South Asian women — can turn our financial well being from a source of stress to a source of strength.

Women Are Actually Pretty Smart Investors

The biggest misconception is that women are very risk averse and therefore not really open to looking at investments that may seem a bit out of their wheelhouse. Dilys notes that that’s a false perception.

• When looking at investment opportunities, women are twice as likely as men to
  consider the rate of return and impact of the investment.
• Essentially, women view investing as more than a means to increase or protect
  wealth. They view it as a holistic means to create a better future for themselves
  and their families.
• Women are twice as likely as men to consider making a positive impact when
  making investment decision, they are also the key decision makers to most family
  financial decisions.

Forget The Hype Do Your Research

You’d be surprised how I would hear some people investing in a stock for example, because everyone is talking about it. But they actually have no idea on the company, what they do or what their forecast is. There has been some spectacular IPOs, but there also have been some brutal crashes after the first day.

When it comes to investment property, always take a look at the demographic that it’s located in. Is the city or town filled with young urbanites or is it a sleepy retirement community? What are the moving trends. The latter has been quite prominent lately. The biggest shift that happened in the past two years was the rush to the suburbs because you have bigger space and your money went further, which made complete sense and the allure of remote work (for those who are able to, of course) was undeniable. But guess what? Those same people who decided to escape the hubub are now trying to find a way to get back in the city, as offices are now opening up and expecting staff to be there for the most part.

“Be proactive”, Dilys enthused. She suggests to take advantage of the plethora of organizations and women-led  financial online groups. It’s a great place to listen, learn and exchange ideas. And don’t be shy. Believe it or not everyone has the same goal: make money work instead of working for it. But as with any research, it can get overwhelming. “Start small” she noted. Take it bit by bit. You may not need to join 10 groups. Just one or two will work. You have to always remember what is it that you want out of it. Don’t be swayed or confused by others’ goals. Keep yourself always in mind.

Be Honest About Your Money Situation

We’ve all been there. You buy that must-have item. Know that you probably paid a bit more than you should have and what do you do when mom asks? Knock of 15 percent, right? There is that automatic feel of shame when talking about our fiances and spending habits with our Desi family. And that shouldn’t be the case. And when to comes to understanding if you are actually in the financial position to afford that purchase, forget about it.

This is why it’s time to be honest about your entire financial scenario. Sit down and start taking into account every expense per month, including your mortgage, all of your loans, credit lines and what’s on that credit card (or two). Don’t be scared of what you find. Create a judgement free zone — and that includes judging yourself. We are our worst critics. Leave that energy elsewhere. This is the time to really focus on yourself through your money.

Personally speaking, when I finally sat down and took stock of what I have, it made a world of difference. And I’m not taking about doing all of this during tax time. Remove yourself from that deadline. That stressful time does no one any favours. And count everything. When I finally did it, I wasn’t feeling lost. I knew exactly what I was doing and started to take steps to change what needed to be changed for the better. I started by creating my list of needs and wants. Sure it sounds cliche I know, but let me tell you it works! Ask yourself, will that new phone or tablet really change my life? Should I focus more on experiences (for me that would be travel) instead of stuff? But most importantly, how long can I make this money last for me? That’s the most important question we all should be asking ourselves regardless if you are married or single.

Dare To Dream

One of my financial advisors helped me wrap my head around the whole idea of savings and investing for my future. He was able to actually put tangible items in my plan. When I am no longer working (you can call it “retirement”, but personally I loathe that word), how much money should I have in order to keep doing what I want? How many vacations will I be planning a year? Am I planning on staying in the same home I am at now, or will I want to move elsewhere? And you don’t have to literally wait until you retire. Keep that option open. And in order to do that, you have to focus on making your money a source of power. You want financial freedom and that’s where dreaming plays a huge role. Because if you don’t entertain it, you won’t start thinking about the steps you need to take to actually achieve it. And honestly if you you find out that it’s not achievable, that’s fine! Just move on to your next dream (and yes, have more than one dream!). Dilys noted that “research shows that at least half of working age women don’t know how much money they are saving for retirement and don’t have a plan – and our data shows that the rising cost of living and housing costs are a key concern for single women.”

I have a few “money mentors” as Dilys called them. Because each financial advisor brings their unique insights to the table. And yes, one of them is a South Asian woman. Because as a woman, especially a Desi one, there are certain cultural barriers one has to bust through in order to make things happen. And like it or not, we are also guilty of implicit bias on ourselves as women towards our actual abilities. It’s the embedded idea of what we think we can or can not do. We need to clean that clutter from our minds before we start to clean up our financial house. Dilys is all about that. “Find an advisor who you connect with and with whom you can have open, honest discussion and who understands your cultural background, beliefs and how that might be impacting your money decisions today.” She urged.

You Lost Your Job

An important topic and a realistic one if you consider the high rate of unemployed women due to the economic challenges of the past two years. Dilys breaks it down:

“If you are currently employed, make sure to plan for an emergency (job loss, sickness, etc). Understand the following:

• What is your cash flow? Are you saving? Do you have an emergency account should you lose your job? Do you have a line of credit for emergencies?
• What is your debt situation? If you have excess balances on your credit cards, prioritize putting a plan together to pay them off or explore options to consolidate the debt into one payment, which, depending on your unique financial situation, can make it much easier to tackle and payoff.”

When Investing, Think Outside The Box 

Don’t be afraid of the various new investment areas that are opening up. There’s crypto, blockchain and other investment spaces that didn’t exist a decade ago. Always be cautious and understand that as with any new breakthrough technologies, it’s an unregulated Wild West atmosphere. But that shouldn’t mean that you can’t dip your toe in it. One of my investment friends advice is to put in how much you are prepared to lose. But that’s where talking about it with your friends or on your whatsapp group makes a world of difference. And if you lose you aren’t surprised but if you win it’s an even bigger surprise and you won’t have FOMO either. I can relate to both as I bought Apple stock at $50 (happy!) and sold Facebook stock at $30 (sad!).

Chatting About It 

As mentioned before, there were the glory days where we all would talk about our latest purchases instead of ways to make our money last. Well, times of have changed. And of course along with age came wisdom. Not sure if it’s just me, but as soon as I would tell my close circle of trustworthy friends about my investments, walls would give way creating a more open forum for ideas, concerns and suggestions among us. Organically this would spark ongoing conversations about how they themselves can start looking at ways to increase their investment porfolio.

I have various chats with my small groups of friends. I have one group for real estate, one for blockchain and crypto and a group for stocks. And all of these groups intermingle because one of the main pillars of investing (and making your money work for you) is diversity in your portfolio. Oh, and all are women, a mix of married and single.

And it’s simply awesome.

So yes, you can empower your money, make it work for you and dare to dream. Just be honest, open and create that support system. Because when it comes to refocusing our finances, it’s honestly alot more fun than you think!

Main Image Photo Credit: www.unsplash.com