Financial Goals for Women
#1: Make enough money. Know the three income sources to do it.
Women can make money through active or earned income by working for an employer, portfolio income from investments or passive income from investments in rental properties or other businesses that they are not actively involved with the day-to-day operations. Most women earn money through active income as an employee for an organization.
That’s why it’s important that women get paid for what they are worth. Considering women have held the right to vote for 100 years and have participated in the workforce in force for only 50 years, we’ve made some great strides in closing the gender equity gap. Today, U.S. women earn 85 cents on average for every dollar a man earns for the same job, so there is still work to be done. With women working together, we can do it!
The SmartHER Earning Challenge
So let’s look at setting financial goals for women and getting paid what you’re worth. Or start a business. Or pick up a good gig or side hustle. Or earn passive income. You can do this! Financial goals for women — like making “enough” money or taking steps to retirement — come in all shapes and sizes. The paths to meet them are as unique as the women who set them.
Goals are important because they give you direction and focus, and they should be clear and unambiguous. SmartHER earning is all about learning what you need to know to achieve your income goals AND maintaining a healthy relationship with money and finances.
Other Ways for More Pay: Entrepreneurship, Gigs and Side Hustles
Many women already work long hours or multiple jobs, which can test energy reserves and emotional well-being. But for some — say, empty nesters, the under-employed or younger women — there may be room for making money outside a “regular” job.
Freelancing, driving and delivery, IT developer, massage therapist and blogger/influencer are just a few options for how to make money on the side. And for those with a great idea, product or service to sell, starting a business offers unique rewards and challenges that can be both lucrative and personally rewarding.
Cha-Ching: Investing and Other Passive Income Streams
Passive income is something of a misnomer. What makes it passive is that you’re not directly exchanging your time for money — after setting it up, you can make money “while you sleep” by earning interest or income on an investment or possession. That doesn’t mean there’s no time or effort involved.
Earning interest or dividends in stocks, mutual funds, CDs or other investments as portfolio income, for example, requires having some money, choosing where and how to invest it, monitoring it and so on. Investing in your employer’s 401(k) or your IRA is still the golden standard for investing, but some women wish to dip their toes in investing directly into the stock market. Before you jump on an app to invest in stocks or trade in cryptocurrency, it’s important you understand your risk tolerance and the investments.
Renting out your car, RV or a room in your house can create passive income but requires engaging with renters, maintenance and more. And there are risks, some of which include loss of your money or property. It’s also important you know the tax implications of earned, portfolio and passive incomes.
With research, planning and attention to detail, passive income offers a chance to let your money or possessions work for you.
