Why Academic Choices, Salary Negotiations and Investing Matter more than ever!
Despite the massive strides and achievements made by women in the workforce during the past decades, we continue to face some pretty MAJOR obstacles that are detrimental to our Financial Health. And one of the MAIN barriers continues to be the GENDER PAY GAP & the knock-on effects it has on our finances.
In fact, it is costing women hundreds of thousands of dollars in savings during their lifetime & we have to do something about it!
Let’s dive in…
According to research by Georgetown University Center on Education & the Workforce (Women Can’t Win), the reasons behind this disparity starts as early as the Academic choices women make at a young age.
Notwithstanding the increase in the percentage of women graduating college (eclipsing men), women’s choice of majors affects their income potential, as many choose fields that lead to lower-paying careers.
For example, 76% of Education majors are women vs 17% in Engineering. On top of that, if you break it down, although Engineering is a more “lucrative field of study”, women are roughly around 32% of Environmental Engineering, which is one of the lowest-paying engineering majors.
One of the many statistics in the study that made my heart sink was the fact that a man with a bachelor’s degree will see his annual earnings increase by 87% over his career, but a woman with a bachelor’s degree will only see a 51% increase in her annual earnings over her career.
Additionally, over a lifetime, women with bachelor’s degree in business earn $1.1 million less than men with the same degree.
My friends, the Gender Pay Gap is REAL and each and every one of us has the responsibility to help CLOSE it.
Below I share three Steps that I believe can have real impact…
STEP ONE: MAKE WISE ACADEMIC CHOICES
We can be tactical with the Academic choices we make. It’s about considering the ROI (return of investment) of a specific degree and considering those that have higher earnings potential.
And it’s not just the choices we make in University or College, but through our career.
I am a huge believer that by educating ourselves continuously and upgrading our skillsets, we gain a competitive advantage that can help us increase our earnings potential (whether we are employed or self-employed).
STEP TWO: KNOW YOUR WORTH
We must KNOW OUR WORTH and therefore, harness the POWER OF NEGOTIATION. Especially with regards to our salaries & positions.
Did you know that on average men are four times more likely to ask for higher pay than are women with the same qualifications?
And according to Glassdoor’s Salary Negotiation Insights Survey, 68% of women accepted the salary they were offered & did not negotiate (vs men 52%). And when breaking it into age groups, a Massive 77% of women between the ages of 45-54 accepted the first salary they were offered and did not negotiate. We got to put a STOP to this!
Most job openings come with a salary range and most of the time, women are offered a salary that is at the lower end of the spectrum. So, don’t just accept the first Offer you get, Negotiate for more (even from that very first salary out of University). This is especially important when considering the domino affect it may have on our future financial wellness.
Let’s think about it for a sec…
Future salary increases will usually be based on a pre-determined percentage based on the original figure. Hence, your first salary can affect your future earnings massively. Additionally, certain benefits (employee matching) and contributions are based on percentages of your salary & the HIGHER the figure, the HIGHER the benefits.
Of course, I understand that for women, especially those with children, there are other factors that aren’t just monetary, and which must be considered when negotiating. For instance, a flexible work schedule are important to allow some childcare responsibilities.
However, I believe that many times women sacrifice pay and career advancement opportunities for fear of not asking & that we actually give up more than we need to. Let’s commit to putting a STOP to that & OWN OUR WORTH.
STEP THREE: LEARN TO INVEST
We must Make Our Money Work for us & the way to do so is by INVESTING in the markets (and the earlier the better thanks to compounding interest).
A study by Merrill Lynch showed that twice as many women as men in the U.S. have no money in the stock market and 41% of young women (vs 28% of men) stated that their biggest fear isn’t market volatility but knowing what they are doing.
Ladies, we got to step up to the plate and invest in the financial knowledge that will reap us the financial fruits of safety & resilience.
I believe whole-heartedly that learning to INVEST is one of the key steps that will help close the WEALTH GAP for women.
And I am here to help…
I am currently working on my upcoming Financial Course & Group Coaching program due in early Fall, which will teach you to think like an investor (money mindset), understand your financial health & key ratios, comprehend financial lingo, and give you a step-by-step guide on what investing is all about and how to do it!
I will be there with you to teach, guide, and keep you accountable! And there will be some VERY COOL bonuses too.
So, if you want to find out more, please visit https://wearyourmoneycrown.com/course and make sure to Join the Waitlist at the bottom of the page to receive updates, discounts & bonuses!
And as always, remember to Wear Your Money Crown & Rule Your Finances!
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