Shifting Your Money Mindset

Simple Steps to Financial Freedom

Money is more than a tool for transactions; it’s a source of stress, power and vulnerability, especially for women in business, leadership and those navigating complex relationships. For many, money isn’t just about earning. It is about keeping, growing and managing the emotional connection to wealth.

Women, particularly those from marginalised communities, face unique challenges in building financial stability. However, with the right mindset and strategies, the journey to financial success is not only possible but transformative.

Let's explore five key trends that shape our financial landscape in 2025 and the steps you can take to shift your mindset toward wealth and success.

1. The Gender Pay Gap and Reduced Lifetime Earnings

Despite advances in Diversity, Equity and Inclusion (DEI), women still earn less than men across various industries. In 2024, women earned only 83.2% of what men earned, with Black and Hispanic women facing even wider gaps. This disparity impacts not only current earnings but also retirement savings, investment opportunities and long-term wealth accumulation. Closing this gap starts with ownership and negotiation power as follows:

• Own your value: Women should negotiate salaries, equity and benefits just as confidently as their male counterparts. Research shows women who negotiate earn up to 20% more over their careers.

• Diversify income streams: Investments in side hustles, real estate and intellectual property can significantly increase wealth.

• Invest in yourself: Certifications, coaching and leadership training boost both earning potential and confidence. With AI, personalised learning and automating tasks can accelerate skill development and enhance confidence.

Women’s investment portfolios actually outperform men’s by 1.8% annually, thanks to long-term, intentional strategies. It’s time to build wealth, not just earn it.

2. Interrupted Careers and Caregiving Responsibilities

Many women, especially women of colour, experience interrupted careers due to maternity leave, caregiving responsibilities, whether for children or aging parents.

Studies show that Black, Indigenous and People of Colour (BIPOC) women are more likely to take career breaks, which can lead to lower lifetime earnings and fewer promotions. For women in the "sandwich generation," balancing caregiving with career growth is especially challenging.

• Monetise your expertise: Career breaks can be turned into wealth-building opportunities by consulting, writing or creating online courses.

• Invest during breaks: Even small, consistent investments can grow over time, providing long-term financial benefits.

• Leverage flexible wealth vehicles: Real estate, dividend stocks and digital assets offer passive income opportunities during breaks.

Women are expected to control $30 trillion in U.S. assets by 2030. Staying invested, even during breaks, is key.

3. Financial Fallout from Divorce or Relationship Breakdown

Divorce, particularly for women over 50, can significantly impact financial and psychological well-being. For Black women and other women of colour, the challenges of asset division, legal fees and the loss of dual income are compounded by systemic inequities. Studies show that women of colour are more likely to experience financial trauma and higher rates of anxiety and depression due to these challenges.

• Psychological toll: Divorce can exacerbate financial trauma, particularly for women of colour who face discrimination in housing and legal systems.

• Impact on homelessness: Women, especially those over 50, are at a higher risk of homelessness post-divorce, particularly Black women facing barriers in securing stable housing.

• Pension issues: Divorce typically results in a 41% drop in income for women over 50, impacting their ability to contribute to retirement savings.

Strategies for resilience post-divorce include increasing financial literacy, protecting assets and gaining access to support networks like financial coaching and legal assistance.

4. Lack of Confidence and Financial Literacy

Despite increasing financial education, many women still struggle with confidence in managing their finances, especially around investing. This lack of confidence is compounded by workplace bias, the gender pay gap and limited access to funding, which disproportionately affect women. For women of colour, these challenges are amplified by racial inequalities.

• Gender pay gap: Women earn 83.2% of what men earn, with wider gaps for Black and Hispanic women, directly impacting wealth accumulation.

• Systemic barriers: Women of colour are 25% less likely to be sponsored for leadership roles, limiting career growth and wealth-building.

• Financial illiteracy: Studies show that women are more risk-averse than men, which often leads to missed opportunities in investments and business ventures.

To overcome these challenges, women should:

• Join women-led financial communities like Ellevest or She Means Profit to gain knowledge and mentorship.

• Read timeless wealth-building books like Think and Grow Rich, The Richest Man in Babylon or Rich Dad Poor Dad to shift their mindset.

• Teach others: Sharing knowledge with others reinforces learning and helps build a legacy.

5. Limited Access to Capital for Business Ventures

Access to venture capital (VC) remains a significant barrier for women, especially for women of colour. In 2023, only 2% of venture capital went to women-only-founded start-ups and Black female entrepreneurs received less than 1% of VC funding. This systemic funding gap severely limits their ability to scale businesses and build generational wealth.

• Support networks like Collab Capital, which focuses on Black entrepreneurs, are filling this gap by providing funding, mentorship and networking opportunities for women of colour.

• The Black Pound Initiative in the UK has boosted consumer spending within Black communities, helping Black-owned businesses grow and thrive.

Solutions include:

• Increasing dedicated VC funds for women of colour.

• Creating incubators and accelerators for women in high-growth sectors like tech and healthcare.

• Expanding access to grants and funding for Black and Latina entrepreneurs through initiatives like Collab Capital. See Jewel Burks Soloman, Managing Partner at Collab Capital (pictured).

Empowering Women to Build Wealth and Financial Freedom

Shifting your money mindset is a crucial step toward financial freedom, especially for women of colour who face unique financial challenges. By adopting strategies such as gratitude, challenging limiting beliefs and taking small, positive actions, you can begin to reframe your financial narrative and move toward greater wealth-building.

However, it’s equally important to address the systemic issues affecting women’s financial success, such as the gender pay gap, limited access to capital and cultural biases.

Investing in yourself, seeking mentorship and engaging in women-led financial communities will help you overcome these barriers and unlock wealth-building opportunities. The time is now to stop waiting for permission and start building your own table, where you set the rules and create lasting opportunities for generations to come.

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If you found these insights valuable, don’t keep them to yourself. Like, comment and share with others who could benefit from shifting their money mindset. Empowerment comes from sharing knowledge and supporting each other’s financial growth.

If you’re ready to take the next step in building your wealth and financial confidence, join SistaTalk Wealth Talk today! In our community, you’ll have access to resources, mentorship and support to navigate the financial world with confidence. Together, we’ll unlock opportunities, break through barriers and create a lasting legacy.