Is Your First Million Possible? Let’s Talk About It

Episode Transcript

Speaker 1 (00:00):
Welcome back to the wealth Wise Woman podcast. I'm your host, Anna,
and as always, a quick reminder, this podcast is for
educational and informational purposes only. It is not financial advice.
Always do your own research and consult with a licensed
professional before making any financial decisions. Today, we're diving into

(00:21):
an inspiring and ambitious topic. Is your first million possible?
Let's talk about it For women facing systemic challenges like
the gender pay gap, caregiving responsibilities, and societal pressures. Reaching
a million dollar net worth might seem like a distant dream,
but it's absolutely achievable with the right strategies, whether you're

(00:45):
starting with zero dollars or already on your wealth building journey.
This episode will break down the mindset, math, and actionable
steps to make your first million a reality. Let's explore
how women can turn an ambition into wealth and build
a future of financial freedom. In this comprehensive eight part episode,

(01:06):
we'll cover why a million dollar goal matters for women,
the math behind your first million, mindset shifts to embrace
wealth building, practical strategies to grow your net worth, investment
vehicles to accelerate your million, Overcoming barriers to million dollar success,
real world examples of women reaching a million Your action

(01:29):
plan to start today. Let's get started and make your
first million not just possible, but probable. Part one. Why
a million dollar goal matters for women. A million dollar
net worth assets minus liabilities is a powerful milestone for women,
especially given unique financial challenges. Gender pay gap. Women earn

(01:55):
eighty two cents for every dollar a man earns, leading
to a four hundred thousand dollars one million dollars lifetime
earnings gap. A million dollar goal helps close this gap
through savings and investments. Longer life spans. Women live five
seven years longer than men, needing one million dollars one
point five million dollars to fund twenty thirty years of retirement,

(02:18):
including two hundred dollars zero zero zero plus in health
care costs, care giving responsibilities. Career breaks for caregiving reduce
income and savings. A million dollar net worth provides a
safety net for flexibility financial independence. A million dollars can
generate forty dollars zero zero zero year in passive income

(02:39):
four percent withdrawal rate, offering freedom to work less or
pursue passions. Empowerment reaching a million counters Societal narratives that
women are less capable with money, building confidence and legacy. Example,
a woman with a one million dollars net worth by
sixty five can retire comfortably covering forty dollars zero zero

(03:03):
zero lush year in expenses without depleting savings, defying retirement
poverty risks. A million dollar goal isn't just a number.
It's a tool for women to achieve security, freedom, and
impact despite systemic barriers. Part two, The math behind your
first million. Reaching a million dollars is a matter of time, savings,

(03:29):
and compound interest. Here's the math time horizon. Starting at thirty,
you have thirty five years to sixty five. Starting at
fifty you have fifteen years. Earlier starts require less monthly
savings compound interest at a seven percent annual return average
for stock market ETFs, money doubles every ten years. Example,

(03:53):
one hundred thousand dollars at thirty grows to eight hundred
thousand dollars by sixty. Savings needed age thirty save dollar
five hundred slash month for thirty five years at seven
percent equal sign one point zero five million dollars age
forty save one dollar two hundred month for twenty five
years at seven percent equal sign one point zero three

(04:17):
million dollars age fifty save three dollars five hundred month
for fifteen years at seven percent equal sign one point
zero one million dollars. Net Worth components include savings, investments,
real estate, and business equity minus debts. Example five hundred
thousand dollars investments plus five hundred thousand dollars home equity

(04:39):
equal sign one million dollars inflation adjustment. One million dollars
today may be worth five hundred thousand dollars and thirty
years three percent inflation aim for two million dollars in
future dollars for equivalent purchasing power. Example, Sarah thirty five
saves dollar eight hundred slash month and a four seven percent.

(05:02):
By sixty five, her two hundred and eighty eight thousand
dollars in contributions grows to one point one million dollars,
hitting her million dollar goal. Pro tip use a compound
interest calculator for example nerd wallet to customize your savings
plan based on age and income. Part three mindset shifts

(05:23):
to embrace wealth building. A million dollar net worth starts
with a wealth building mindset, especially for women facing societal barriers.
Believe it's possible. Shift from I'm not good with money
to I can learn to build wealth. Read the millionaire
next door fifteen dollars for inspiration. Embrace long term thinking.

(05:46):
Focus on ten thirty year goals, not instant gratification. Example,
investing dollar one hundred slash month now versus spending on trends.
Overcome scarcity mindset. Women often grow up with money is
tight belief. Replace with I can create abundance through discipline.
Value your worth. Negotiate salaries or raise business rates to

(06:10):
close the pay gap. A five thousand dollars raise invested
at seven percent grows to one hundred fifty thousand dollars
in twenty years. Seek community. Join women's financial groups on
X for example, at her first one hundred K to
share goals and stay motivated. Example Lilah raised in a
scarcity mindset, read your money or your life, and shifted

(06:34):
to abundance thinking, saving dollar two hundred slash month and
negotiating a three thousand dollars raise, adding ninety thousand dollars
to her wealth by sixty five. A wealth building mindset
empowers women to see a million dollars as achievable, not
out of reach. Part four practical strategies to grow your
net worth. Here are five strategies to build toward your

(06:59):
first million. Maximize income. Negotiate a five ten percent raise
two thousand, five hundred dollars five thousand dollars on fifty
thousand dollars salary, or start a side hustle dollar two
hundred slash month. Invest extra income, cut non essential spending.
Reduce dining out or subscriptions dollar one hundred slash month

(07:20):
using yna B Redirect to savings or investments one dollar
two hundred year. Pay off high interest debt, clear credit
card debt inkive fifteen percent interests to free cash flow. Example,
paying off five thousand dollars at eighteen percent saves dollar
nine hundred slash year. Build multiple streams, invest in rentals

(07:43):
dollar five hundred slash month income. Start a business one
dollar zero zero zero month, or sell digital products dollar
two hundred slash month. Automate savings. Set up auto transfers
to four O one k or ira two hundred dollars
dollar five hundred slash month via Vanguard to ensure consistency. Example,

(08:05):
Priya negotiated a four thousand dollars raise, cut dollar one
hundred slash month in spending and started a dollar two
hundred slash month side hustle investing. Dollar four hundred slash
month at seven percent grows to six hundred thousand dollars
by sixty five half per million dollar goal. These strategies

(08:26):
make a million dollar net worth tangible through disciplined incremental steps.
Part five. Investment vehicles to accelerate your million. Investing is
key to growing wealth exponentially. Here are top vehicles for women.
Four hundred and one k slash four hundred to three B.
Contribute to employer plans with matches. For example, four percent

(08:50):
of fifty thousand dollars equal signed two thousand dollars free
max twenty three dollars zero zero zero year twenty twenty
five roth IRA invest seven dollars zero zero zero year
post tax for tax free growth. Ideal for young or
lower income women. ETFs slash index funds. Invest in low

(09:11):
cost funds for example voo VTI zero point zero three
percent fees via betterment for six eight percent returns. Example,
dollar five hundred slash month grows to one million dollars
in thirty five years. Real estate buy a one hundred
fifty thousand dollars rental with twenty percent down, thirty thousand

(09:32):
dollars rent one dollar two hundred month and appreciation five
percent slash year. Build two hundred thousand dollars equity in
ten years business equity grow a side, hustle or business. Example.
A ten thousand dollars investment in a business yielding fifty
dollars zero zero zero year adds five hundred thousand dollars

(09:52):
to net worth if valued at ten x earnings. Example,
Sophie invests dollar three hundred slash month in a four
h one K with a dollar one hundred slash month
match and dollar two hundred slash month in a roth IRA.
Her dollar six hundred slash month grows to one point
two million dollars by sixty five, hitting her million dollar goal.

(10:15):
Pro tip use robo advisors like wealth Front zero point
two five percent fees for easy diversified investing. Part six.
Overcoming Barriers to million dollar success. Women face unique obstacles
to building wealth, but these solutions help limited income, lower

(10:35):
earnings reduce savings. Solutions start with twenty five dollars dollar
fifty slash month in a wroth IRA and increase with
raises or side hustles, dollar one hundred slash month, caregiving breaks,
career pauses, limit contributions. Solution save ten dollars dollar twenty
slash month during breaks and catch up with dollar five

(10:57):
hundred slash month later. Lack of confidence financial jargon intimidates solution.
Read broke millennial takes on investing fourteen dollars or join
X groups like at Money with Katie. Unexpected expenses, emergencies,
derail savings. Solution build a one thousand dollars three thousand
dollars emergency fund in a high yield account four point

(11:19):
five percent API late start starting in your forties or
fifties feels daunting. Solution use catch up contributions seven thousand,
five hundred dollars extra two four oh one k over
fifty and invest aggressively one dollar zero zero zero month. Example.

(11:40):
Clara forty five started late with dollar five hundred slash
month in a step IRA and dollar two hundred slash
month in ETFs. By sixty five, her dollar seven hundred
slash month grows to seven hundred thousand dollars, combining with
three hundred thousand dollars home equity for her million. A
gendered perspective. Women's lower earnings and caregiving roles require small,

(12:04):
consistent steps and community support to reach big goals. Part seven,
Real world examples of women reaching a million. Here are
three hypothetical women who achieved a million dollar net worth. Llila,
thirty five teacher. Llila saved dollar three hundred slash month

(12:25):
in a four oh one K with a four percent
match and dollar one hundred slash month in a roth ira.
She bought a one hundred fifty thousand dollars rental, gaining
two hundred thousand dollars equity by sixty five. Her six
hundred thousand dollars investments plus four hundred thousand dollars real
estate equal sign one million dollars. Amara forty five nurse.

(12:46):
Amara started late, investing dollar five hundred slash month in
a sepira and dollar two hundred slash month in ETFs.
She paid off her two hundred thousand dollars home, adding
five hundred thousand dollars equity by sixty five. Her five
hundred thousand dollars investments plus home equal sign one million dollars.

(13:08):
Emma fifty, entrepreneur. Emma grew a ten thousand dollars business
to fifty dollars zero zero zero year valued at five
hundred thousand dollars ten x earnings. She invested one dollar
zero zero zero month in ETFs, reaching five hundred thousand
dollars by sixty five, totaling one million dollars. These stories

(13:29):
show that a million is possible through diverse paths, starting
at any age. Part eight your action plan to start
today ready to aim for your first million. Here's a
detailed plan. Calculate your path. Use a compound interest calculator
for example investor dot gov to estimate savings needed For example,

(13:52):
dollar five hundred slash month for thirty five years at
seven percent. Start small, save twenty five dollars dollar fifty
slash month in a roth ira or four to oh
one k via Fidelity automate. To ensure consistency, boost income,
negotiate a two thousand dollars five thousand dollars raise, or

(14:12):
start a dollar one hundred slash month side hustle on upwork,
invest fifty percent of extra income, cut expenses. Reduce fifty
dollars dollars one hundred slash month in non essentials for
example subscriptions using mint redirect to investments learn continuously read
the Millionaire next Door fifteen dollars, or follow at Bigger

(14:35):
Pockets on X for wealth building tips. Build an emergency fund,
save one thousand dollars three thousand dollars in a high
yield account to protect investments. Track progress, use personal capital
to monitor net worth quarterly. Celebrate milestones for example, ten
thousand dollars saved with a five dollars treat. Seek support.

(14:58):
Join women's financial groups on X for example Women's personal
finance for accountability. Example plan a thirty year old earning
sixty thousand dollars saves dollar three hundred slash month in
a four oh one K with a dollar one hundred
slash month match and dollar one hundred slash month in
a roth IRA. She cuts dollar fifty slash month in

(15:22):
spending investing dollar four hundred fifty slash month. Total by
sixty five, her savings grow to one point one million
dollars at seven percent. Pro tips. Listen to wealth building
podcasts for example The Money Nerds on Spotify. Consult a
fee only planner one hundred dollars dollar three hundred slash

(15:42):
hour for complex goals. Share your million dollar journey on
X for community support. Your first million is not just possible,
it's within reach. With discipline, strategy, and a wealth building mindset.
Despite challenges like the gender pay gap and caregiving, women
can leverage savings, investments, and income streams to hit this milestone.

(16:05):
Start small, think long term, and surround yourself with knowledge
and community. Your million dollar net worth is a path
to financial freedom, security and legacy. Take the first step
today to make it your reality. Here's your action plan
to start today. Calculate your million dollar savings goal using
a free online calculator. This week, open or contribute twenty

(16:29):
five dollars dollar fifty slash month to roth Ira or
four one k and automate it. Cut dollar fifty slash
month in non essential spending and redirect to investments. Join
a women's financial group on x or read a wealth
building book for inspiration. Tune into next week's episode for
tips on creating passive income streams. The best day to

(16:51):
start building your million was yesterday. The second best is today.
Don't let doubt or barriers stop you make your first
million a reality. Thanks for joining me on the wealth
Wise Woman podcast. If this episode ignited your wealth building ambition,
share it with a friend. Ready to aim high until
next time. Keep building your wealth wisely,