SheMoney Moves
7 actions you can take with your money.
The SheMoney Moves
The SheMoney Moves encompass all the actions you can take with your money. Our framework provides a clear and practical structure to help you engage thoughtfully with your financial resources. You are making money moves every single day, and our goal is to help you do that with greater attention and intention to improve your financial wellbeing.
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Earn refers to the compensation you receive for your work, whether it's active income (such as a salary, hourly wages, or commission) or passive income (like rental properties or royalties). Earning money is a crucial part of supporting yourself and achieving your goals, and it typically involves full-time or part-time employment and sometimes a side hustle! At its core, earning is about creating value for others and being fairly rewarded for your efforts.
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Negotiate your salary: Whether you are just starting out or are already employed, consider negotiating your salary with your employer, versus just accepting what is offered. When just starting out, or transitioning to a new role, be sure to do research on what represents a solid salary for your level of education and experience. Studies have shown that women are less likely to negotiate, so don’t be that gal! Even if you don’t get the starting compensation, or raise, you are asking for, chances are your employer will respect you for trying.
How to negotiate your starting salary — Harvard Business Review -
Level up with higher earning skills: Identify skills that are in high demand and pay well in your industry. Investing your time and resources in developing these skills can lead to higher-paying job opportunities. When you do level-up, make sure your employer knows you took the initiative to do so and put those skills to work.
11 Tips and Hacks You Can Use To Level up Your Career — Indeed -
Care about benefits: Your salary is the main component of your total compensation, but other benefits like paid vacation days, health care and matched retirement contributions matter a lot as well. Be sure to take all of the factors into account when you are negotiating for a position.
A checklist for your work benefits — UBS
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Save is about putting money aside for future use. Saving is the simplest of the money moves in terms of understanding what to do, but understandably hard in practice given the high cost of living. By making saving a priority and developing smart financial habits, you can build a strong foundation for your financial wellbeing and live with greater peace of mind!
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Maximize High-Yield savings. There is a big difference between what you can earn on your cash in a checking account versus a high yield savings account. Minimize the balance in your checking account to cover monthly expenses, and have the rest of your savings earning money for you in a high-yield account. Shop around for the best rates and make sure your bank is FDIC insured.
High Yield Savings Accounts — Forbes -
Prioritize an Emergency Savings Account: A general rule of thumb for emergency savings is to have at least three to six months of living expenses put aside in a separate high yield savings account. Those expenses should include rent/mortgage, food, utilities, transportation and essential health care.
What It Is and Why It Matters — NerdWallet -
Understand the Power of Compounding: it was Albert Einstein who is credited with saying: "Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it." The power of compounding allows you to generate earnings not only on your initial investment, but on the accumulated earnings of that investment. The sooner you can start saving and earning the better, including saving for and with your children if you are a parent!
The Power of Compound Interest: Calculations and Examples — Investopedia
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Spend is our most active money move as we all spend money on products and services every single day! The bottom line is that you must spend less than you earn to have financial stability, and budgeting and conscious consumerism can support you in that goal. Of course, spend your hard earned money on what brings you joy, and balance that with avoiding mindless spending on things you don’t really care about.
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Create a budget: We think budgeting gets a bad rap. It is not a tool to control, it is a tool to help you use your money to create the life you want. Tracking your spending will help you determine what is needed to cover essentials, and what is truly discretionary. When you track your spending, even for a short period of time, you can see where your money goes rather than wonder where it went. There are some fantastic apps out there that help you track and budget, but just writing it down works too.
Budget 101: How to Budget Money — NerdWallet -
Needs vs Wants: How many tacos does it cost? Tori Dunlap, in her book “Financial Feminist” offers this great tip about evaluating whether to make a discretionary purchase. In the story she talks about someone who loves TACOS more than anything, and a taco costs $5. When that person wanted to buy a jacket, say for $50, she would say that jacket would cost her 10 tacos. This process is a helpful tool to help you think about whether a purchase is worth it or not. Spend your hard earned money on things that matter to you!
Budgeting for needs & wants exercise — Consumer Finance Protection Bureau -
Shop in alignment with your values: Your purchasing power is just that, power! Every single time you buy a product or service you are transferring your financial resources, your financial power, to whomever you are buying that product or service from. It is not always easy to do so, but try as much as possible to align your purchasing with your values. Prioritize shopping from women-owned and person of color owned businesses! And if you need help finding great local businesses, check out our SPEND initiative.
How to Shop According to Your Social Values — US News
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Invest (our favorite move!) is about your money working for you, versus you working for money. It refers to a broad range of activities and concepts related to using money to potentially generate positive returns over time. Most commonly it refers to investing in public equities (stocks/mutual funds/ETFS) and bonds (interest bearing instruments). Other asset classes include private equity, real estate, both residential and commercial, commodities, digital assets, artwork, and collectibles of all kinds. This money move is chock full of jargon, which is a big reason why it feels intimidating. We are here to help demystify.
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Invest in knowledge: Buy a book, or two, about money and investing (or, of course, sign them out of your library). And if you have them already, read them! There are so many GREAT books that are written by women, for women, about money, so finding one that is appropriate for where you are on your investing journey has never been easier. We love the recently published books, Financial Feminist, from the Founder of Her First $100k Tori Dunlap, and Girls Just Wanna Have Funds: A Guide A Feminist Guide to Investing. Are you over 50 and feeling like you have gone through a good chunk of your life without understanding the basics? Pick up Carrie Schwab Pomerantz’s book The Charles Schwab Guide to Finances After Fifty. There truly are so many great titles and the money you spend on a book is a great investment in your financial future. More in the list below!
The Best Personal Finance Books by Women to Read in 2023 — Business Insider -
Keep investing simple: For many people, maybe even most people, investing in low cost, liquid, broadly diversified ETFs (exchange traded funds) and index funds is the way to go.
ETF vs. Mutual Fund: It Depends on Your Strategy — Charles Schwab -
Start investing for retirement and keep it going: Time is on your side! The government wants you to save for retirement and thus there are vehicles that have been created that offer tax advantages. Examples include 401Ks or Roth IRAs. The primary benefit is that these assets grow tax deferred, and if your employer offers a match, it is basically free money. That said, like most things with respect to investing, there is no one-size-fits-all answer to whether you should prioritize contributing to a 401(k) over other financial goals.
5 guidelines for investing in retirement — Merrill Lynch
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Borrow is the act of exchanging money with a person or entity that will need to be paid back, almost always with interest. Borrowing can occur in many forms, including student loans, small business loans, mortgages, credit card debt, lines of credit, personal loans, pay-day loans, and loans to and from friends and family. Carrying debt in and of itself is not good or bad, but being educated and thoughtful about how your debt affects your whole financial picture really matters.
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Regularly check your credit score and educate yourself on all the key factors that make up your score. You can use reputable sites such as AnnualCreditReport.com, Credit Karma and Experian. Be sure you are using a reputable website with a secure connection before sharing your personal details. Getting started early will give you easier access to loans and lower cost debt through lower interest rates and fees.
What Is a Credit Score and Why Is It Important? — NerdWallet -
Pay off your debts: This is not a tip, it is an acknowledgement. Millions and millions of people experience severe financial stress because their debt levels have become unmanageable, often due to no fault of their own. If this is you, please get professional assistance. There are many free resources there to assist because it is so common.
Should I Pay Down Debt Before Saving Money? — Equifax -
Know your Credit Card: All Credit Cards and not created equal. For the record, finding the ‘right’ credit card is not easy as there are so many different card characteristics and trade offs. It might be said that choosing a card is a lot like choosing a pair of shoes. The fit has to be right. Do research before choosing a card and think about what is most important to look for features such as annual fees, interest rates, rewards programs, introductory offers, and additional benefits. Consider how these features align with your needs and goals.
How to Choose a Credit Card: 4 Steps to Picking the Right Card — Motley Fool
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Give is any money that you give away without the expectation of getting it back. Of course, this includes charitable giving, but it also includes monetary gifts to friends and family, as well as political giving.
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Research where your money is going. There are a number of sites, like Charity Navigator and Guidestar, that can help you find great nonprofits to give to. This can be particularly helpful when trying to find ones that are responding effectively to navigate emergency situations and events.
Discover charities on Charity Navigator — Charity Navigator -
Familiarize yourself with the tax regulations for charitable donations. There are lots of limitations and regulations in place for charitable giving, which vary by country. If you are anticipating a tax benefit, it’s important to know the rules in advance. Below are the regulations for the United States.
Charitable Contribution Deductions — IRS -
Donate Property. Many people do not know that you can donate different kinds of assets to charitable organizations. Check out the publication below to help you determine the value of property (other than cash) that you can give to a qualified organization.
Determining the Value of Donated Property — IRS
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This is such a huge category, and is one that is often absent from other money move types of lists. Protect includes actions such as taking out proper insurance (auto, home, liability, life, etc.), identity theft protection, intellectual property registration, the proper titling of assets, and estate planning, including having a will.
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Have a will in place: We wrote a SheMoney article on the importance of having a will. If you don’t have one, you are not alone. The majority of adults do not. We get it, who wants to make a plan around dying? That said, having a plan will give YOU peace of mind and make your passing easier for you loved ones you leave behind.
What Is a Will, What Does It Cover, and Why Do I Need One? — Investopedia -
Protect your Identity: Identity theft and other fraudulent activities are on the rise. Though it would be lovely to live in a world where we did not have to worry about this, we do not. There are many steps you can take to prevent this happening to you. Check out the article below for some more detailed tips to protect yourself.
Identity Theft: What It Is, How to Prevent It, Warning Signs and Tips — Nerd Wallet -
Understand your Insurance Policies: Having good policies in place to protect major assets, including yourself, offers peace of mind. It is important to budget for insurance, and be vigilant in understanding what your policies cover, and what they do not. Here is a good primer on the basics of insurance.
Insurance: Everything you need to know — Insurance Business