The 5 Most Common Money Mistakes Women Make

In this episode of the Wealthwise Woman Podcast, Anna breaks down the five most common money mistakes women make – and how to avoid them. She explores issues like not investing early enough, relying too heavily on a partner for financial security, and failing to negotiate for better pay. The discussion covers practical strategies for building an emergency fund, creating a long-term investment plan, and improving money confidence. Real-life examples show how small changes in habits can lead to significant long-term financial benefits. This episode empowers women to take proactive, informed steps toward lasting financial stability.

Episode Transcript

Speaker 1 (00:00):
Welcome back to the wealth Wise Woman podcast. I'm your host, Anna,
and before we begin, as always, please remember this podcast
is for educational and informational purposes only. It is not
financial advice. Always do your own research and consult a
license financial professional before making any major money decisions. Today

(00:22):
we're diving into a big one, the five most common
money mistakes women make. And before you feel called out,
let me say this. These mistakes are common because no
one taught us otherwise. Many of us were never given
the tools, the mindset, or even the permission to fully
own our financial lives. But here's the thing. Once you
can identify these mistakes, you can fix them, and once

(00:45):
you fix them, the ripple effects on your financial security, confidence,
and future are massive. So in this episode, we're going
to break down each mistake in detail, talk about why
women are more likely to fall into these traps, explore practical,
real world fixes for each one, and give you clear,
doable next steps to turn things around. Let's get into it.

(01:08):
Mistake Hash one not investing early enough. One of the
biggest financial missteps I see is women waiting far too
long to start investing. Sometimes it's because we think we
need a lot of money to begin. Sometimes it's fear
of losing money. Sometimes it's just being busy and thinking
I'll get to it later. But here's the hard truth.

(01:31):
Later costs you more than you think. If you invest
two hundred dollars a month starting at age twenty five
and earn an average seven percent annual return, you'll have
about five hundred thousand dollars by age sixty five. Wait
just ten years to start, and you'll end up with
only about two hundred and forty thousand dollars. That's the

(01:51):
power of compound growth and why delaying is such an
expensive mistake. Why women wait. We're taught to prioritize saving
over investing, fear of risk, not realizing that not investing
is the bigger risk, lack of confidence in understanding markets.
Fix start small, even twenty five dollars a month in

(02:12):
a broad market etf can get the compounding clock started.
Set it up automatically so you're not tempted to skip it.
Mistake Hash two not negotiating pay. Study after study shows
that women are less likely to negotiate salary offers, and
when they do, they often ask for less than men.

(02:34):
Over a career, that can cost hundreds of thousands of dollars.
Let's put numbers on it. If you start at fifty
thousand dollars and get three percent raises without negotiating, after
thirty five years, you'll earn about three million dollars total.
If you negotiate just five thousand dollars more at the
start and get the same raises, you'll earn nearly three
point three million dollars. That's a three hundred dollars zero

(02:58):
zero zero plus difference from one conversation. Why women avoid
negotiating Fear of being perceived as difficult, lack of information
about market rates, not wanting to jeopardize the offer, fix
research salaries before interviews, glassdoor payscale LinkedIn practice, your ask
with a friend or mentor, Remember negotiating a standard business practice,

(03:22):
not a favor you're asking for. Mistake Hash three relying
too heavily on a partner. There's nothing wrong with sharing
finances or having a partner contribute more, but putting all
your financial security in someone else's hands is risky. Life happens, divorce,
job loss, illness, and if you don't know the details

(03:45):
of your shared finances, you can be left scrambling in
a crisis. Why women do this traditional relationship dynamics, assumption
that he's better with money, lack of time or interest
in managing finances. Fix. Know every account, password and balance
in your household, Have your own savings account in your name.

(04:07):
Keep learning about personal finance so you can step in
if needed. We've covered the first three big ones. Not
investing early enough, not negotiating pay, relying too heavily on
a partner, mistake cash. Four not having an emergency fund.
This one is huge, and it's often the difference between
a temporary setback and a full blown financial crisis. An

(04:31):
emergency fund is your safety net for unexpected expenses, job loss,
medical bills, car repairs, sudden travel, you name it. Without one,
you're forced to rely on high interest credit cards or loans,
which can spiral into debt quickly. Why women skip this
step Feeling like they can just put it on a card,

(04:54):
prioritizing other financial goals first, believing emergencies won't happen to me.
Fix aim for at least three six months of living expenses.
Start with five hundred dollars as your first milestone. It's
enough to cover most small emergencies. Keep it in a separate,
easy access savings account, not your checking automate transfers every month,

(05:19):
Even twenty dollars adds up over time. Mistake Hash five
avoiding money conversations. This might be the most damaging mistake
because it impacts all the others. Avoiding money conversations means
you're not talking to your partner about shared goals, not

(05:39):
asking your boss about raises, not discussing investments with friends,
and not seeking advice from experts. When we avoid these conversations,
we miss opportunities, we miss out on learning from others,
and we stay stuck in the same patterns. Why women
avoid money talks cultural norms that money is private or taboo,

(06:01):
fear of judgment, or feeling behind, lack of confidence and
financial knowledge. Fix Start small talk to a trusted friend
about one money goal. Join communities or groups where money
talk is encouraged. Remember, discussing money isn't rude. It's a
powerful step toward empowerment. The bonus mistake not having a plan.

(06:26):
Even if you're doing some things right, saving investing a bit,
keeping debt low, without a clear plan, it's easy to
drift financially. Fix set clear short term, medium term and
long term goals. Track your net worth quarterly, adjust your
plan as your life changes. How to turn it around

(06:47):
starting today. Here's your quick start checklist to fix these
mistakes and set yourself up for long term success. Open
an investment account, start small, automate contributions. Research your salary range.
Prepare to negotiate at your next review. Get full visibility
on all household finances, every account, every balance. Set up

(07:09):
an emergency fund. Start with five hundred dollars. Build from there.
Have one money conversation this week with a friend, mentor,
or partner. The goal isn't perfection. The goal is awareness
and consistent action. Every woman has made at least one
of these mistakes. The important part is not staying stuck there.
Once you shine a light on the patterns, you can

(07:31):
make intentional choices that move you forward. Remember your financial
journey is yours alone. You don't have to keep up
with anyone else's pace. You just have to take the
next right step for you. If this episode resonated with you,
share it with another woman who could use a confidence
boost in her money journey, and don't forget to subscribe.

(07:54):
Next week, we're talking about how to build multiple income
streams without burning out. Until then, I'm anna, And remember
knowledge is not just power, it's financial freedom. You've got
this