Money Management 101: Start Now

Kim Holmes, Technology and Diversity Engagement Manager at Discover, speaks at the 2019 AnitaB.Org Grace Hopper Celebration about her panel “Women Technologists: Trajectory of Wealth”

By: Kim Holmes, Technology and Diversity Engagement Manager at Discover

Managing your money and building wealth is important, and learning the ropes to do it is a vital skill — especially for women in tech, where women frequently undervalue their market worth. So, while women are working to aggressively grow our opportunities, we must do the same for our finances.

Recently, I had the honor of discussing exactly how to do this with four of my industry peers at the annual Grace Hopper Celebration, the world’s largest gathering of women technologists. The insights that were shared varied, but the key takeaway was universal: Women must be advocates for themselves and their financial futures.

Our five-woman panel brought unique experiences, perspectives and advice to help women in tech make the most of their money. From asking for raises to managing and investing money, it’s up to each of us to create and execute a goal-oriented plan, whether that includes taking care of a family, starting a business or investing in passion projects. And the most important piece of advice I can offer is this: Start early.

Navigating the Savings Journey

Think of your saving and investment abilities as muscles — they need to be built up and exercised. If you start your workouts sooner, you’ll be stronger later. If you start saving money when you’re younger, you’ll have more money to work with when you retire. When you’re young and don’t have a family or a mortgage, more of your income is disposable. This is when you should be investing. One way to start early is to take advantage of employer-offered investment opportunities, especially those that include employer-matching benefits, such as a 401K. For example, at Discover we match what our employees put in up to five percent. Every employee who has such flexibility should absolutely be investing that five percent.

Also important in your saving journey — and it is a journey — is creating goals. Investing without a goal is similar to a road trip without a destination; every route will take you somewhere, but is it where you want to end up? Have a destination in mind — that is, develop your saving objectives in line with your personal and professional goals. Want to own a house one day? You’ll need a down payment, plus enough income to cover monthly mortgage payments should unexpected costs arise. Take everything into consideration, and then plan accordingly. To ensure you’re regularly depositing an amount to reach your goal, it’s critical to set up a savings deposit routine, such as automatic weekly transfers within your bank accounts to move money into your savings.

Learning to Negotiate

Saving and investing are, of course, easier when you are earning the money to do it. But for women, earning more money at work must be part of your wealth planning strategy. Many people think salary negotiations are uncomfortable. This makes having a plan to do it even more imperative. My advice is to not wait until your review period. After all, closed mouths don’t get fed. Show your manager that you understand your company’s values and what you bring to the table that ladders up to those values. If your employer doesn’t want to compensate you the way you believe you deserve, and another one does, it may be time to cut ties.

Doing your Research

A plot twist for many women in the world of tech often comes if we join a startup, where the world of pay and benefits can be very different. Because startups have less capital in their infancy, these companies can rarely pay market rate salaries, offering equity in the company as an incentive instead. Determine what you will accept in terms of salary vs. equity in the company. Every startup’s approach is unique, and the terms can be complicated, so it is best to consult someone with experience in that realm. Be aware that there are multiple components to your compensation package. For example, if you will sacrifice a certain dollar amount in exchange for more paid time off, know that going in. But be aware that vacation days cannot be saved, nor invested.

As more women take on roles in technology, it’s more important than ever to understand how to grow, invest and save money. Equipped with the right tools, knowledge of our worth and a healthy dose of confidence, women can negotiate salaries that will ultimately support growth of their wealth. But without the ability to save and invest wisely, even a large salary does not guarantee smooth sailing after retirement. Start saving early, and save as much as you can, throughout your career. Your future self will thank you.

Tech @ Discover

How technology is driving Discover’s business

Discover Financial Services

Written by

How technology is driving Discover’s business

Tech @ Discover

How technology is driving Discover’s business

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