OUR BIGGEST MONEY MISTAKES

The first and most important thing to note whenever we’re talking about money is that at its core, money is a game; and it’s a game with clear rules. It requires research, strategy and mental fortitude, but at the end of the day, anyone can play. Even us. Even you.

We would be remiss, however, not to note that the game is, in fact, rigged. And not in our favour.

We exist in a system that strategically keeps wealth out of reach for women. It begins with the gender wage gap. Over a 40 year career, white women can expect to be paid about $400,000 less than their male counterparts. Black women will earn ~$877K less, Indigenous women will earn ~$833K less, and Latinx women will earn a mind-blowing ~$1million less throughout their working life.

This wage gap begets a savings gap, which then creates a wealth gap.

The point gets hammered home by the motherhood penalty – a phenomenon that sees women with children earn 12% less than childless women. That percentage grows with every child she has.

As women/moms (and especially as women/moms of colour) we find ourselves standing on this most unbalanced of playing fields, wondering whether or not it’s worth it to even attempt to get in the game…

We say: HELL YES it’s worth it. In fact, we MUST play because the only way to infiltrate & overhaul this system is from the inside.

In addition to the obstacles of unequal pay and inequitable household labour distribution, we’re also kept out of the game of finance through a lack of information and education (we aim to help rectify that with our book). Nobody really teaches us what we need to do to get our shit together (in fact, we’re often steered in the opposite direction throughout our education and working lives). But the playbook exists. And the rules are actually quite straight forward.

All we’re saying is: learn the rules (we’ll help!), use your knowledge of said rules to identify past mistakes, and then make a plan to rectify them. Mistakes are not inherently bad. On the contrary, they are a part of the process – they highlight the critical areas that you need to work through to achieve financial freedom and create a foundation on which to build generational wealth for your fam.

Today, in an act of solidarity, we’re sharing a few mistakes we’ve personally made in our financial lives.

Namely:

Using a savings account that wasn’t helping money grow (ew, what a waste)
Overspending unnecessarily (those takeout orders and footwear purchases really add up)
Not talking about money the way men do (a.k.a. constantly with friends and colleagues)
Not taking responsibility for family finances (we basically built up a mental block to all things money since we were dealing with literally everything else as SAHMs)
Upholding antiquated taboos and being too “classy” (read: uncomfortable) to compare notes with our friends (so counterproductive)
Assuming it wasn’t possible to get out a debt while still saving (turns out, it is possible and essential – you just have to find the ratio that works for you).

Our biggest mistakes, however, are very common ones. If you find yourself nodding along as you read them, rest assured that they can be easily rectified with nominal fees and a few clicks of a mouse. (Thank God for the internet)

Big Mistake #1: Not having a Living Will

If you don’t take the lead and allocate assets, money, guardianship, and all that yourself, guess who will? The government. And do you really want them making decisions about your estate and your children on your behalf? No – Certainly not if you want to create generational wealth.

To create a quick, easy, inexpensive, legit will from the comfort of your sofa, we recommend WILLFUL.

Big Mistake #2: Not having Life Insurance

If you have a spouse or children who depend on you financially, life insurance is a no-brainer. If you die sooner than expected (of course, you have no way of knowing), your immediate family will be liable for any outstanding loans, debts, mortgage payments, etc. You want to rest assured that even if your savings aren’t up to par, your fam will be able to cash in on something. At the very least, they will be able to cover funeral arrangements. (Death doesn’t have to be sad and expensive, does it?)

To get insured with a few mouse clicks (and without the requisite broker visit, bloodwork, and paperwork galore) we recommend DROP DEAD LIFE INSURANCE (which has the best name ever and also happens to be backed by finance oracle Warren Buffet. NBD).

Big Mistake #3: Not having our own savings

You need your own savings in case shit hits the fan. Your goal should simply be to have enough cash handy (in an accessible account) to cover about three months of expenses should unforeseen circumstances prevent you from earning money for a while.

To make the most of your savings, we recommend opening a high interest savings account with WEALTHSIMPLE. There are no minimums required to sign up, super low fees, and if you want to level up and transfer an existing RRSP or TFSA to their investing platform too, they’ll cover the transfer fees then get you set up with an investment plan that matches your risk tolerance and time horizon – all for way less than the bank will charge you.

Once you’ve got your bases covered (will / insurance / emergency savings) you can really start to play the game.

And remember, just making a plan is a massive step in the direction of financial freedom.

If you can act on that plan, you should. And with the options listed above, you can make a hell of a lot of progress in just one afternoon.

So again, here are some of the most convenient, cost-effective, and user friendly vehicles to help you get your $hit together:

Willful (quick, easy, online wills for as little as $100)

Drop Dead Life Insurance (fast, simple, inexpensive life insurance that’s backed by Berkshire fucking Hathaway)

Wealthsimple (high interest rates + low fees = more money in your account)

And remember: Talk money with your girlfriends. Start getting involved in your family’s finances. Be selective about what you buy. Know your credit score. Set goals and make a plan.