Welcome to my “Ask A CPA” feature. This is where the nerdy CPA in me comes out and shares some actionable and practical personal finance, business and accounting tools and tips for working women. Got any business or accounting questions? Send them my way at corporate@thecorporatesister.com.
One of the most prized pieces of advice I’ve ever received is to strive for financial stability and increase as a working woman, regardless of the path I may choose in life. However, it wasn’t until many years later that I truly started considering the importance of this one piece of counsel.
This also seems to be the case for many women, as research data from Earnest shows men’s net worth is nearly double that of women’s. This has given rise to the gender wealth gap, which turns out to be even worse when considering individual racial lines. According to the Center of Global Policy Solutions’ October 2014 Fact Sheet, income inequality, unemployment, retirement security, compounded by the effects of motherhood, are among the factors contributing to this wealth gap. As such, this rampant inequality creates a gap not just among genders, but also in the wealth potential of entire families, communities, countries and by extension the world we live in. Hence the importance of solving a problem that ultimately impacts all of us by helping women in general, and minority women in particular, achieve financial stability and growth by providing them with tools and tips to increase their net worth.
The concept of net worth is based on the difference between what we, as individuals own, also known as our assets, and what we owe, which are our debts or liabilities. Assets may consist of homes, personal possessions, vehicles, investments. Debts or liabilities may be personal loans, mortgages, credit card loans, and other obligations. The difference between the two results in individuals’ net worth. Tracking one’s net worth over time is an effective way to ensure being on track financially, but also improving one’s financial position by increasing one’s net worth.
While many increasing one’s net worth is challenging at best, and nearly impossible at worst, especially as life’s obligations and commitments pile up with time, it is actually pretty feasible to do so. If you’re facing this challenge today, and are not sure where to start, here are 2 simple ways to begin the process:
1- Consider your assets:
Track your existing assets: Do you really know what you own? When was the last time you made an inventory of your assets? If you have not done it in a while, or have never done it at all, it may be time to start.
Increase your salary: Can you ask for a raise? Are you able to make a calculated professional move that can result in a greater pay? If so, increasing your salary can greatly contribute to boosting your assets and net worth.
Diversify your income: Have you been considering adding additional streams of income to your revenue? Are you toying with this dream side hustle you’ve been thinking of for quite some time? How about that business you’ve been wanting to start? Diversifying and multiplying your streams of income is one of the most effective strategies to add a boost to your assets.
Invest in assets that appreciate in value over time: If you’ve been dabbling into investing into stocks, bonds, life insurance, or any other investment vehicle, you are on the right path. Investing in assets that grow in value over time, as opposed to assets that lose value over time such as cars, clothing and other personal possessions, can work wonders for your net worth.
2- What about that debt?
The second part of any strategy to increase your net worth begins with taking a good, hard look at your debts. That’s the part that’s dreaded by most, especially women, who, according to 2021 data by Educationdata.org, unfortunately hold 58% of all student loan debt in the U.S. In addition, this study by the Federal Reserve demonstrates a gender-related credit score gap showing lower credit scores for single women as opposed to their male counterparts, which also accounts for a heavier credit use by single women than single men. Furthermore, the more acute financial effects of divorce on women only worsens these already bleak findings. Hence the importance of making debt handling a priority for women.
Pay off the debt: Can you redirect some of your savings towards paying off debt? Where can you trim your expenses to allocate more funds towards reducing your credit card debt and other liabilities? Can you afford an extra mortgage payment every year? Focusing efforts and finances to paying off debt can go a long way towards increasing your net worth, in addition to eliminating the pressure and stress that comes with it.
Resist the temptation to acquire more debt: A large majority of our environment is geared towards extreme consumerism. From ads on our mobile phones, to open publicity on social media, not to mention the constant pressure to upgrade our products and services, we are most often exposed to the temptation to use credit. The more we can resist this temptation, the less debt we acquire, and the more we can strengthen our net worth.
Are you working at increasing your net worth? Please email us at corporate@thecorporatesister.com and share your insights and stories with us.
“What if I’m the only one in the room?” I used to be petrified to be the only one in the room, the only woman, the only Black woman, the only introverted, the only one with natural hair, etc…It’s a common fear we have as working women, especially as Black women in the workplace. What if it’s just me? Then we may shrink, run away, talk ourselves out of opportunities, or just grow silent…
This is a very acute feeling and reality for Black women at work. According to McKinsey’s 2020 Women in the Workplace report, 49% of Black women at work feel their ethnicity makes it harder for them to get promoted, or obtain a raise, as compared to 3% of white women and 11% of all women.
If you’re asking yourself this question and are just not sure what to do, here are a few tips that can help:
1- Turn the fear into strength: Being the only one in the room also rhymes with being hyper visible. It’s also having the opportunity to share unique ideas and insights, and benefit from the exposure. Changing perspectives and positioning oneself in a position of strength rather than as a victim can make a world of difference.
2- Identify allies: Resist the temptation to shut people out! There are people out there who will support you and root for you! These are the allies who will give credit to your ideas during meetings, challenge insensitive comments, etc…Identify them and welcome the support!
3- Find sponsors:Sponsors will advocate for you and argue on your behalf. Additionally, sponsors who are different from you can actually help you by exposing you to different networks, ideas and insights. Identifying potential sponsors and reaching out to them can prove invaluable in advancing one’s career.
4- Find your tribe: Find people who think like you, through clubs, groups and other associations. Not only is the support necessary, but the networking, mental, and psychological lift of a community can create much needed momentum in one’s career.
Overall, turning the fear of being the only one into strength, identifying potential allies and sponsors, and finding one’s own tribe can not only alleviate the pressure of being the only Black woman in the room, but also create advantages out of a challenging position.
What has been your experience being the “only one in the room”?
Let it be the Weekend is our news roundup featuring career, business and lifestyle news for working women and moms. If you would like to propose some news or topics we can cover, please email us at corporate@thecorporatesister.com
This week, we salute icon Cicely Tyson’s journey and path as we celebrate her life;
“It’s hard to explain what it feels like to be a Black woman at work.
“It feels like a long, invisible uphill battle.”
“I feel like I can’t be myself at work, that I constantly have to perform.”
These are a few of the words and feelings echoed by many Black women at work, indicative of a general sense of unease and even struggle in the workplace. This struggle is largely reflected in the general state of Black women in the workplace, as documented in the 2020 State of Black Women in the Workplace report published by McKinsey& Company.
Stuck at the intersection of race and gender, Black women have faced for decades heavier challenges than most other employees, including wider lack of representation and large pay gap, to cite a few. With the advent of the COVID-19 pandemic and the associated health and economic crisis, which has disproportionately impacted the Black community, these barriers have grown tremendously. At a time when one in three mothers is considering leaving the workforce or scaling down their career plans due to carrying the brunt of the crisis both on the home and the work front, Black women are even more at a disadvantage.
Yet, this gender diversity crisis is also an opportunity to identify what has not been working in the corporate and business world for Black women. Without understanding the unique problems faced by Black women and women of color at work, it’s virtually impossible to create the appropriate solutions.
From mine and so many other Black women’s experiences in the workplaces, here are 7 common struggles they face at work:
Feeling judged more harshly and subject to higher expectations
One common observation of Black women at work has all to do with not benefiting from the same treatment as most other employees. This is often referred to as a feeling of being judged less impartially, and falling subject to higher and more stringent expectations. This is in addition to being even punished for being ambitious. Unfortunately, this also leads very often to a sense of being set up for failure, potentially fostering early career disappointment, lack of motivation and ultimately complete career abandonment.
Lacking support
Support in the workplace is absolutely pivotal for employees, especially those who are part of minority or disadvantaged groups. Manager support especially, can make the difference between motivated, high-achieving employees, and employees who lag behind. During the COVID-19 crisis, and as a result of the racial incidents in the United States, Black women have had to carry a heavy emotional and mental toll and report not feeling supported by their management.
Playing the role of the token
Tokenism is defined in the Merriam-Webster dictionary as “the practice of doing something (such as hiring a person who belongs to a minority group) only to prevent criticism and give the appearance people are being treated fairly”. While research has shown that tokenism can also afford minorities a competitive edge, being used as the representative of an entire race can also have the adverse effect, resulting in felling overwhelmed, over-burdened, and isolated.
Lacking deserved recognition
Lack of recognition is another struggle Black women have faced for decades in the workplace. Having to work harder and being “twice as good” is not uncommon for many, if not most, Black women. While it’s considered to be the price to pay to attain higher and unprecedented levels of achievement, it also limits the potential of these women and sets a negative precedent for all.
Being the only one in the room
Faced with low numbers of women in management and leadership, many Black women find themselves to be the “only one” in the room. Without the opportunity to see themselves in others, isolation and self-doubt, combined with rampant imposter syndrome, can easily set in. What this also creates is the expectation that there will always be a limited number of Black women at the table, thus exacerbating this feeling of otherness and exclusion.
Less interaction with leadership
Along with the lack of support, limited opportunities to interact with company leadership and management also creates a significant source of blockage for Black women at work. Without the opportunity to reach senior management, there are lessened chances to convey the ideas, performance, as well as issues faced by Black women at work.
Experiencing micro-aggressions at work
Micro-aggressions are “comments or actions that subtly and often unconsciously or unintentionally express a prejudiced attitude towards a member of a marginalized group.” For Black women at work, they are a big deal, often creating and reinforcing layers of structural racism. As such, they can have a macro and life-changing impact, affecting Black women on an emotional, mental and physical level, with long-standing personal and professional implications.
All in all, these struggles, and so many others, not only stand in the way of career success for Black women at work, but they also have the potential of scarring them on a deeper mental, psychological and emotional scale. This is why it’s so important to understand not just their impact, but how they manifest in and outside of the workplace. Only when we begin to break the taboo around the walls faced by Black women in the workplace, that we can begin to collectively heal and grow.
What struggles are you facing in the workplace as a Black woman?
“Who am I professionally?” I remember asking myself this question the very first time I attended a networking event and had to answer the question: “So, what do you do?” I also remember asking myself this same question at every critical turn of my life and career, when the need to define or re-define a new professional as a working woman would become an urgent quest. More recently, the question has popped up in the midst of a global pandemic that has blurred the line between work and home, health and disease, and safety and the lack thereof.
This is a question you may have asked yourself throughout your career, or have been faced with through interactions with and inquiries from others. Most importantly, this is a call you may have had to answer at decisive moments in your life and work and as you grow and evolve closer to your purpose. As a working woman and/or a working mom, you may struggle with this continuously during the current pandemic we all find ourselves in.
As crucial as it is to develop our personal identities, defining our professional ones play a central role in our careers. Prior research defines professional identity as “one’s professional self-concept based on attributes, beliefs, values, motives and experiences” (H., 1999). The Institute for Advancement of the American Legal System defines one’s professional identity as “how to bring your personal values into your profession so that you don’t lose your sense of self.” However, research also shows that while professional roles can provide their holders with a sense of privilege and even prestige, stigmatized individuals such as working women during the COVID-19 pandemic, may not benefit from this privilege. This makes it crucial for working women to define new, more compelling professional identities in light of the unique times and challenges we’re currently facing.
Here are 3 steps to develop a new professional identity as a working woman during and after the pandemic:
Leverage your skills, not your weaknesses
Traditional professional identities may have had many, if not most of us, majoring in minors as we focused on our weaknesses more than we did ourskills. However, faced with the scarcity imposed by a global health crisis of epic proportions, it becomes more important than ever to gain time, efficiency and impact by focusing on our strengths.
Assess your skills: What are your strong areas? What do you excel at? What comes to you naturally? What skills have you acquired over time? Assessing your strengths is the first step towards re-building a professional identity that zooms in on what you’re good at, as opposed to your average skills or even your weak areas.
Package your skills: How can you package your skills into a product or service worth selling? Whether it is a product or service for your business, or a set of skills providing you with a competitive advantage as an employee, packaging what you are good at is at the center of your new, most effective professional identity.
Put yourself out there!
Gone are the days when working women were relegated to the back of the room, working in silence and utter oblivion. What these unique times have shown us, is that in times of challenges, women create change! From women heads of states who have successfully confronted the pandemic in their countries, to women rising up to make history in politics and various industries, we’ve seen progress happen through female leadership in times of crisis.
Let go of the fear to be excellent: Excellence can be scary for working women, who have long been discouraged to take the lead in their fields. A new, reinvented professional identity also involves coming out of the professional shadows to unapologetically show your excellence.
Build your tribe: Professional impact is not achieved alone. It takes a village to create impactful change, growth and progress. Part of working women’s re-invented professional identities entails the creation of positive, fruitful networks of excellence.
Re-imagine your lifestyle!
Live on purpose: Your professional identity is not an entity separate from your personal identity. Your life is a whole. As such, all its various parts are inter-dependent. As you operate in excellence at work, you also have to commit to living on purpose in all other areas of your life.
Use your time purposely: Time is your most precious commodity. As a working woman and mom, you know all too well how many demands weigh on your time. Hence why it is crucial to re-imagine a life and identity where time is used in an impactful way.
How will you re-invent your professional identity as a working woman?
I’m learning the power of letting go in order to grow in all areas of my life. Work is no exception, especially after experiencing a global health pandemic that taught so many of us to let go of most of what we believed we couldn’t live without. It took me a while to realize that many of the obstacles facing me in my career, actually had less to do with my abilities, than with the baggage I was unconsciously carrying.
So many of us, especially as working women and moms, carry way too much, most of which is not ours to carry and weighs us down along our path. Much of this consists in emotional and relational baggage we often fail to recognize and address for most of our careers. The less we fail to acknowledge this invisible weight holding us back, the more we tend to struggle in the dark, looking for the wrong answers everywhere. So we keep adding to our resume, network, or educational portfolio, instead of considering what we could let go of instead, such as:
1- False and outdated expectations of what and where we should be in our careers and lives
Have you ever read one of those articles entitled “30 things to accomplish in your career before you’re 30” or the likes? Have you ever found yourself feeling like you should be further along in your career, or that you have not accomplished enough? Does the thought of where you should be in your career keep you from getting ahead?
False and outdated expectations about ourselves and where we should be in our work and life can often keep us behind, literally freezing us in place out of disappointment. Until we let go of the expectation that our careers (and lives) should follow a certain timetable, we will miss out on opportunities to give them our all.
2- People and things that don’t support our growth and keep us back
Some people will never support you, and you will live. Some places, institutions and processes will fail you at every turn, and you will also live. Trying to change these is not only a waste of time, but a sure way to remain stuck in an unhealthy cycle of dependency.
3- Negative beliefs and self-talk that keep us stuck
Most of the obstacles standing in our way are literally in our heads. They’re made up of all the negative beliefs and self-talk that haunt us whenever we try to make progress. Identifying these and learning to let go of them is one of the biggest steps we can make towards career fulfillment.
4- Comparison and envy
If you’ve ever looked at someone else’s career with a twinge of envy, wondering why your career is not further along, you know how paralyzing and debilitating that can be. Comparison and envy truly are the thief of joy, at work and in all other areas of life. Every career is unique, and moves at its own pace. Give yours the benefit of the doubt, as well as the time and space to grow at the pace and in a way that reflects your unique purpose.
5- Fear of stepping out of your safe zone
Fear is one of the most potent career killers. It robs us of our self-confidence, creativity, and growth, forcing us continually into familiar, yet un-challenging territory. If you’ve noticed that you’ve been stagnating in your career, chances are fear is controlling your work and preventing you from taking the next step in your professional evolution.
6- The emotional baggage and trauma from past career failures, job losses/betrayals etc
Failure is a necessary teacher. Yet, too often, it also and unfortunately becomes a paralyzing companion, reminding us of our inadequacies and struggles, blocking us from advancing further in our work and purpose. For many working women, the ghosts of career failures past, job losses, betrayals, and other professional mishaps remain stinging reminders that they may just not be enough. Letting go of this negative emotional baggage is the beginning of a more fulfilling and purposeful career.
7– Career guilt
Career guilt is real, especially for working women and moms. Whether it manifests when pursuing different opportunities, challenging the status quo, or achieving success, it tends to rear its ugly head when you get closer to achieving to achieving a professional breakthrough. As such, many working women will choose the safety of societal acceptance over fulfilling their dreams, foregoing their life’s work so as not to be judged harshly or even worse, rejected.
In 2020, we all learned to survive in the face of a global health pandemic, an economic crisis and the unfortunate losses of so many of the advances accomplished in diversity and gender equity. Now in 2021, we learn to reinvent ourselves and strive, what with all the lessons, insights and feedback we keep receiving from this season of challenge and learning.
As working women and moms especially, we’ve experienced the brunt of this crisis, both at work and on the home front. Faced with the necessity of working remotely, the unfortunate loss of jobs, and the need to homeschool children and shoulder the majority of household responsibilities, we’ve had to find ways to reinvent the way we think about and do things. Our entire concept of what constitutes normalcy has been turned upside down, leaving us to re-create the foundation of our work and lives.
Whether we’re working from home or re-entering the workplace physically, or looking for a new job or career, this year is truly the year where we reinvent the way we work and live. As we make a plan for it, here are 3 steps to keep in mind:
Overhaul your mindset: In any plan, your mindset comes first. How you think, how you view yourself and the world affects everything you do. I’ve learnt you can have everything, but if your mindset is not up to par, you won’t be able to sustain or enjoy much.
Make a plan to have a mental and spiritual daily practice in place. It may be praying, meditating or just spending some time alone daily. For me, it’s prayer and having a few minutes to myself daily (even if I have to lock myself in the bathroom or spend a few extra minutes in the car J)
Establish a journaling habit. Remember how we talked on Day 1 about identifying your predominant beliefs and steering away from negative ones? Documenting my thought patterns and mindset has helped me continue to gain the clarity I need to identify the mind blocks standing in my way.
Plan to seek the help you need. It may be therapy, or identifying like-minded people around you.
Plan to adjust your lifestyle: Reinventing yourself is also reinventing your habits and the way you live. It doesn’t need to be drastic, but a little change every day goes a long way.
Prioritize the tasks aligned with your strengths. Remember the strengths assessment we did on Day 2? The tasks you do that are aligned with your strengths and bring you the most energy should have a place on your daily schedule, and ideally be prioritized if you can. I understand it may not be 100% possible at first, but starting to work on it starts opening doors of possibilities and attracting the right opportunities to you.
Create more time: Transformation requires time. Plan to create more time in your schedule by waking up earlier for instance. On Day 2, you identified some activities not aligned with your strengths, which can be HUGE time-stealers. By eliminating some of these, you can also create MORE time for yourself.
Plan to reconsider your network: Who you attach yourself to will help or hinder your reinvention process. Take a look at your contacts: are the last 5 people you called or texted aligned with your new, ideal vision of your life and desires you described on Day 3? If not, you may need to re-work your network.
Recharge your career: The work you do is not separate from your life, contrary to public opinion. Work should be meaningful, fulfilling and purposeful, for it to have a positive and healthy impact on you.
Take a look at the careers aligned with your desires and strengths you may have listed on Day 3. Which ones can you plan to transition to?
If transitioning to a new career is not on your radar, which activities that are part of your current job can you prioritize or steer towards?
Make networking a priority: Prioritize meeting new people who are more aligned with your new vision of the career.
Are you creating your Career Reinvention Plan in 2021?
