Balancing Career Success and Smart Money Management: A Woman's Guide
Hello beautiful minds!
As a Canadian advisor working with ambitious women every day, I've noticed something that deeply concerns me: while I'm seeing more and more women earning impressive incomes ($150K+), this isn't always translating into actual wealth building. It's a pattern that keeps me up at night - watching brilliant, successful women excel in their careers but not seeing that same growth in their net worth.
This disconnect between high income and wealth generation isn't your fault. Our traditional financial system wasn't built with professional women in mind, and let's be honest - making great money doesn't automatically mean you know how to make that money work for you. That's why I want to have an honest conversation about balancing career growth while building meaningful wealth. And yes, we're diving into the Canadian specifics - TFSAs, RRSPs, and everything in between!
The Reality of Where We Stand
Let me share some insights that might resonate with you:
Only 62% of Canadians are utilizing TFSAs (down from 66% last year)
The average TFSA balance is $41,510
At retirement, the average Canadian woman has approximately $129,000 in their RRSP
Half of Canadian women have less than $5,000 in savings (together, we can change this!)
These numbers tell a story, but what keeps me passionate about my work is what I see in my practice every day. I meet brilliant women who are absolutely crushing it in their careers - landing promotions, breaking into six figures, and shattering glass ceilings. Yet, there's often a gap between earning well and building wealth. Think about it: you can be making $200K a year, but if you're not strategically managing that income, you might have less wealth built than someone making half that amount.
This is why I'm such a firm believer in what I call "The Power Pair" - career success AND money management. They're like the dynamic duo of financial freedom. Your career brings in the income (the fuel), but your money management skills determine how effectively you use that fuel to build lasting wealth (the engine). One without the other is like trying to drive a luxury car with no gas - or having a tank full of gas but no vehicle to put it in!
As an advisor who specifically works with professional women, I've seen firsthand how mastering both elements can transform not just your bank account, but your entire relationship with money. So let's dive into how you can excel in both areas...
Elevating Your Career Success
Professional Growth Strategies
Here's what I share with my clients about standing out:
Document your achievements consistently (yes, even the ones that feel small!)
Build meaningful professional connections
Seek mentorship from someone who understands your industry
Stay informed about industry trends (our market is unique and ever-evolving)
Workplace Navigation
Important reminders for Canadian professional women:
Know and advocate for your worth (with confidence and grace)
Embrace performance reviews as opportunities for growth
Cultivate strategic relationships at work
Set clear, healthy boundaries (it's not just okay - it's essential!)
Smart Canadian Money Management
Building Your Financial Foundation
Here's what I recommend to my clients:
Establish that emergency fund (6-12 months of expenses, including those Canadian winters!)
Optimize your TFSA strategy (tax-free growth is a beautiful thing)
Maximize RRSP benefits (let's make those tax refunds work for you)
Automate your savings (consistency is key)
Consider the First Home Savings Account if homeownership is in your future
Investment Strategy
Let's make your money work intentionally:
Diversify across the TSX and global markets
Implement tax-efficient investment strategies (Canadian dividends deserve special attention)
Create a balanced TFSA and RRSP approach
Plan beyond CPP (while appreciating its role in your retirement)
Practical Balance Tips (From My Experience)
Effective Time Management
Schedule regular money check-ins
Prioritize tasks with intention
Create space for financial planning
Professional Development
Invest in your growth (bonus: it's often tax-deductible!)
Network with purpose
Stay current with market trends
Financial Wellness
Partner with professionals who understand your goals
Maintain regular financial reviews
Stay informed about Canadian tax updates and benefits
Your Action Plan
I encourage you to take these steps this week:
Review your TFSA contribution room
Check your RRSP deduction limit
Implement automatic savings
Choose one career focus area
Begin building sustainable money habits
Remember, this journey isn't about perfection - it's about progress. Some days will flow seamlessly, while others might feel more challenging. What matters is maintaining forward momentum.
Moving Forward Together
Your financial journey is unique, and it deserves thoughtful attention and care. Whether you're just starting or well on your way, each step forward matters. I'm here to support you in creating a financial strategy that aligns with both your career ambitions and personal goals.
Would you like to explore any of these topics further? Need guidance on your TFSA vs RRSP strategy? I'm here to help you navigate these decisions with clarity and confidence.
Here's to building wealth with purpose! ✨
It’s Mother’s Day… Time for a Financial Wellness Check!
As Mother's Day approaches, I decided to dedicate this post to all the mothers out there. As a mother to four precious children - well, three children and one grown young man - I know all too well that when it comes to finances we can put ourselves on the back burner. Below I have outlined some pointers on how to make sure you are taking care of “you” when it comes to your money.
Make that money hunny!
Oftentimes when we think about generating income we think about the responsibility that comes along with it. How much do we need to contribute to the household for things to run smoothly? How do we work and still balance taking care of our families? Honestly, when it comes to making money we tend to sacrifice our happiness. The truth is, however, that our income needs to be generated in a meaningful way that is in line with our passions, gifts, and purpose in this world. I find that the more in tune you are with the genius that resides in you, the more joy, fulfillment and achievement you experience as a whole. This Mother’s Day, take the time to reflect on how you earn your income. Are there ways that you can generate money that are more aligned with your purpose? Try to incorporate more of these aspects into your workflow so the joy it creates can be ushered into all areas of your life.
Put “You” in the budget
Did you notice that when you became a mother your children began to dominate the budget? From a bigger residence and clothes, to activities and tutoring? Our children’s needs and wants tend to take the lion’s share. When speaking with my clients I often advise that it is so important to carve out a piece of the budget for you. Whether it is taking a new course to upgrade your skills, or “celebration money” to congratulate yourself on any successes you achieve, make sure YOU are a line item in your budget.
Define Your Retirement
As a parent, one of the most important financial goals you can set for yourself is a comprehensive retirement plan. Making sure that your retirement is taken care of gives you the satisfaction of knowing that you will not have to depend on your children for stability in your later years. With all the hustle and bustle of raising your children, this element of your financial plan can often get overlooked, but remember the earlier you start - the easier it is to achieve your goals.
Give Yourself The Gift of Peace
It may be a morbid conversation, but understanding what will happen to your children when you pass away is like wrapping up the idea of peace and giving it to yourself with a bow on top. Life Insurance, a will, and knowing that your loved ones will be taken care of provides a sense of comfort that is unexplainable. Get rid of the nagging feeling that comes with uncertainty and book that appointment with your advisor and estate lawyer to get things in order.
Now that we’ve gotten all the finance stuff out of the way, I am wishing all the wonderful mamas out there an amazing Mother’s Day! This is your day… and you deserve it!
5 Things Covid-19 Taught Us About Our Finances
As we all navigate our way through a global pandemic we have been forced to develop new habits and learn new ways to exist. Social distancing has not only forced us to slow down, but has also allowed us to explore new ways of doing things. From developing new skills to honing our natural talents, we can all agree that Covid-19 has had its positive points - and with finances its no different… Check out the five ways that this global pandemic has helped us get our money right.
We Need An Emergency Fund
One of the major things we all realized as a result of Covid-19 is that anything can happen. When we are used to the status quo - going to work everyday and receiving our income - we can fall into the trap of thinking that our routine is guaranteed. This pandemic has taught us otherwise. Our income is not guaranteed… and Covid-19 has been a huge social wake up call. The truth is, our income can be effected at any time by a number of different things so having three to six months worth of living expenses saved is always a good idea. The alternative to an emergency fund is, well, credit cards and who wants to lose their income and rack up debt at the same time? Not the best plan.
2. Cooking At Home Is A Lot Less Expensive (and can be fun too)!
Before Covid-19, like many others, I spent a lot of money per month on dining out. As social distancing became mandatory many of my favourite restaurants either closed down or modified their hours. Heading to the grocery store became a more frequent occurrence and before you knew it… I was experimenting with cooking, spending more time in the kitchen with the kids, saving money and eating more nutritiously. On average, a home cooked meal saves $16 per serving when compared to dining out - meaning that dinner for a family of four could have savings of up to $64 if cooked at home. Considering that groceries and restaurants are the categories that most individuals overspend - we can safely say that being forced to social-distance has definitely had its benefits.
3. Maybe We Don’t Need All That Stuff After All
Nails, lashes, facials, waxing, random trips to the mall to buy clothes we absolutely do not need - all of that was forced to a screeching halt when non-essential services shut their doors in an effort to minimize the spread of Covid-19. What did that mean for our purses? We got to actually see what we truly spend on non-essential nice-to-haves. Now I’m not suggesting that we cut the things that actually bring us a little piece of sunshine, but it is worth an evaluation to see if our savings could be better allocated to reaching our financial goals a bit faster.
4. How Not To Panic During a Market Downturn
Seeing your investments drastically plummet in a matter of days is not for the faint of heart. Covid-19 swiftly altered every sector, and negatively impacted all production across the globe. The result was a huge decline in, literally, every market. As I received numerous calls from clients and investors wanting to pull their investments I had to constantly give the reminder that we have seen this happen before, and the market usually corrects itself. Going through market ups and downs develops resilience and a stronger ability to withstand the anxiety that usually accompanies the thought that you can be losing money. The key to staying calm? Remain focused on why you started investing in the first place… What was your initial financial goal? Was it to purchase that property? your child’s education? Retirement? Whatever the goal, your risk tolerance should have determined the correct investment mix to achieve it. So why panic when things go wrong in the short term?… It’s only a temporary setback.
5. Spending Time With Loved Ones Doesn’t Have To Cost Money
From virtual celebrations on Zoom to drive-by birthday parties, Covid-19 has been a season filled with creative ways to stay connected. One thing is for sure, we have proven that even though we have to keep our distance we are connecting in so many more ways than before… and the benefits to these new hang out options have left us with more cash in our wallets. A simple phone call or video chat was not the norm for a baby shower, but on the up side you get to say a simple congrats and skip the present purchasing (not to mention all the costs that go into hosting an event like this). No concert tickets, no BYOB, no buying a new outfit to look your best - with all that savings, cancellations may not be a bad thing after all. But the main lesson learned is that love and support has nothing to do with distance… or spending.