Financial Feminist summary

So making changes to your financial life begins by processing the deep emotions around money and self worth that led to the present. Even with a clean slate, though, for many the financial present can feel pretty overwhelming. If the idea of your own finances gives you extreme anxiety, what’s important right now is to acknowledge that feeling, and be willing to make changes.

Step two, then, is just to check in with your financial life. Running away from the reality of money makes it impossible to make a plan to achieve your goals. It leaves the hard work of building the life of your dreams to chance. What you need for this check in is to know what’s going on – how much is coming in, how much is going out, and where it's going. 

Armed with all your data, it’s time to decide on your first three goals. Choosing just three means you’ll make faster progress toward each goal, and nothing is more motivating than seeing progress. Don’t set a new goal until you finish one of these three. 

If you are currently living without savings, an emergency fund should be a first goal. Not because some random finance bro said so, but because knowing you're covered in an emergency relieves an amazing amount of life’s stress. Make your three goals as specific as you can, set a time frame to get them done, and include how they’ll make you feel once you’ve accomplished them. 

Now, it’s time to make the plan that will guide your spending from here on out. We’ll set up three categories for monthly spending that take into account your needs, goals, and priorities. It might help to think about these as three baskets, since folk wisdom makes it clear not to put all your eggs into just one. 

The first basket is your expenses. This is the basket where you put the money that covers the costs of sustaining life — your housing, food, transportation, utilities, insurance and such. The monthly outgoings that keep the lights on and the belly full. 

Now that you’ve checked in with your emotions, faced your financial present, and set goals for your future, it’s time to tackle why it matters so much. 

Let’s break down why saving for emergencies is at the top of the priority list. It’s more important than just getting you out of a financial bind– it’s a feminist issue! The wage gap is real, and as an individual you can challenge that far more easily knowing you can walk away from any workplace and be okay while you find a better position. If you spend more than half your income on expenses and find it difficult to save, having the confidence to negotiate a raise or find a new position makes a huge difference over time

Money can’t buy happiness, but it buys the freedom, choice and security that means a happier life. Facing your financial emotions and reality, setting goals and priorities, and adjusting as you go can relieve stress and fear in the short term, and build a life you love over time. Your success isn’t selfish, either. It gives you the power to help build a more equal, fair, and just world for everyone. 

Actionable Advice: track your emotions while spending