Money Musings 💭 Why your financial literacy matters
You may not know this but April is Financial Literacy Month. 💵
I define financial literacy as having the knowledge to make decisions around your money that will lead to the results you want.
It also means having confidence in your plans as well as the self awareness to follow through and make them happen.
In talking to so many people, especially women, about their financial lives, I’ve found a common thread in many of our stories.
So many of our financial successes come from someone who gave us a nudge.
This might be a colleague who urged us to set up our 401(k), a friend who sat down with us to show us how she budgets, or the colleague who bravely shared what she’s getting paid so we could compare.
When we get educated about money, we not only lift ourselves and our families up, we are also an example of what’s possible.
We bring others up with us and that has a tremendous impact.
Your education matters. Become that person that lifts someone else up!
I’m so honored to have you here with me each week improving your financial literacy.
If there is something you’d like to learn more about or have a specific question, hit reply and let me know.
MONEY MOVE OF THE WEEK
CONTRIBUTE TO YOUR IRA BEFORE THE TAX DEADLINE.
You thought I’d be done talking about taxes? Wishful thinking… 😆
I have an important tip to share. Even though we’re well into 2023, you can still make contributions to your IRA (Individual Retirement Account) for 2022 until the tax filing deadline on April 18.
The maximum you can contribute to your IRA in 2022 is $6K (or $7K if you’re over 50 years old). Not sure if you should contribute to a Traditional or Roth IRA? Learn more about it here.
If you can’t contribute as much as you want this year, that's okay! Do what you can, and then start setting aside money every paycheck for IRA contributions for 2023.
For example, if you’d like to max out your IRA in 2023, you would want to contribute ~$542 per month ($6,500/12) or $250 per paycheck if you’re paid every 2 weeks ($6,000/26).
If that feels unattainable, start with what works for you. Even what might feel like a small contribution per month can make a difference!
YOU GOTTA SEE THIS
THE MORE ERRATIC SEX (IN MICE).
A recent study found that male mice were more unpredictable than females, "challenging century-old assumptions used to exclude females from research because of their hormones" (The New York Times).
For decades female mice, other female animals and women were left out of medical research and trials due to the belief that their hormones made things "too complicated."
Turns out, we’ve pretty much had it backwards. The study found that the estrous cycle of the female mice had little to do with their behavior and male mice actually exhibited more erratic behavior than the females.
"Hormones in males also fluctuate, typically changing over the course of a day. And male mice that are housed together establish a dominance hierarchy, with alpha males expressing more than 10 times as much testosterone as the submissive ones."
If I think back to my time in investment banking, survey current world political leaders or open ANY history book… Um yes, this checks out. 😆
Why does this matter?
There’s been a tremendous cost. Until 1993 women who were "capable of being pregnant" were mostly excluded from drug clinical trials until laws changed.
Unsurprisingly, "women are almost twice as likely as men to experience severe side effects from drugs, most of which have dosages based on the initial testing done in men. Women also may not derive the same benefits from the drugs."
Another gap to remedy that affects women’s health and well-being everyday.
your weekly money wins
Here are all the amazing money moves you made this week 👏👏👏
Grandma M: Me and my hubby are closing on our condo!
Sarah G: Opened a 529 for my girl
AWIT: Got money back from escrow
Amelia S: Didn't overspend. Has been a tight 2023 🫠
Spark P: Looking for new life insurance to lower my monthly cost!
Bri D: March was a 3 paycheck month and put the entirety of #3 into savings!
Stephanie B: Exhausted by dinner prep time - got creative with charcuterie and freezer stuff. No $$ spent
Jenn H: Starting a "no spend month" aka essentials only!
Gabriell S: I went on an expensive vacation and made the money back within a month!
A M: 75% of the way to my real estate emergency fund (aka one year per rental unit)
Meg F: My boss advocated for a big promotion for me based on my efforts. 20% raise!
Nolan A: Did a health check on my retirement accounts
Anna: Getting my CPA the last of our tax stuff since K-1s are now out and then (hopefully?) closing the book on 2022 taxes
Ann P: Cancelled two auto subscriptions I wasn't using
Jessi C: Cooking more meals at home and making it fun! Trying new recipes and getting local groceries!
C Flowers: Opened a new savings account for an emergency fund and new house