Wealth isn’t always about money—you can accrue wealth from a number of sources: Wealth of time, resources and experience are all valuable forms of wealth. Financial wealth or independence can certainly make it easier to add to these other streams of wealth in your life, but for women, increasing wealth across the board comes with extra challenges.
You’ve probably heard of the gender wage gap. Even though more women are statistically pursuing higher education and working longer hours than ever before, they’re still paid 82 cents on average for every dollar a man makes. It’s rooted in our historically patriarchal world. However, humans make progress. It’s what we do. And a large part of that progress rests on the backs of the women who have helped us get this far. For example, in 2019, it was reported that 13 million women-owned businesses were employing 9.4 million people, boosting employment and the global economy.
So why are women still facing gender discrimination in the workplace in the 21st century? Part of it is that most women haven’t been encouraged to embrace the wealth mindset that their male counterparts have grown up believing is their right—but women can change that.
Wealth Inequality Is Rooted in Gender Inequality
Worldwide, men have 50 percent more wealth than women. And with a global economy that was originally built and maintained by powerful men, it’s no wonder there’s such a wealth gap. However, it’s also rooted in gender inequality that stems from the traditional gender roles women have been unfairly placed in.
In the U.S., women spend 37 percent of time in unpaid care roles, like caring for children or taking care of the home—that equals about 2.1 extra hours per day. Over a year, that’s 95 extra 8-hour-days with no pay. To start making change and operating with a wealth mindset, women have to continue challenging these gender expectations. And, as silly as it sounds, that starts with women believing they can.
Female-Led Companies Make More Money
A study conducted by S&P Global found that firms led by women are more profitable than those run by their male counterparts. Women-led businesses not only generate excess profits but also experience a 20 percent increase in stock prices and a 6 percent increase in profitability. The study also suggests that female executives appointed to C-suite positions have similar attributes to many successful male executives—the only difference in a male and female executive is more often than not opportunity.
Women have to start applying to jobs and going into job interviews with a wealth mindset; that means believing not only that we deserve the same amount of money and respect a man in the same position would get, but also that we have the same opportunity. Once that’s embraced, women create these opportunities for themselves, opening new doors and shattering the glass ceiling.
High Net Worth Women Are More Likely to Give to Charity and Volunteer
Women in high net worth positions do more good with their earnings than their male counterparts, too. A 2018 U.S. Trust study reported that 93 percent of high net worth women give to charity and 56 percent spend time volunteering, compared to 87 percent of high net worth men who donate to charity and 41 percent who volunteer. A great example of this? Look at Dolly Parton’s work in funding the COVID-19 vaccine. Women can do truly amazing things when we realize we can—and that’s all part of the wealth mindset women must start to embrace.
This willingness to do good with our money is the epitome of the wealth mindset. Embracing this means looking at money as a current that ebbs and flows. It changes hands and it comes back to us. By looking at money this way, women not only do better things with it, but also continue accruing wealth for themselves to continue to make positive change in the world.
The World Would Be Better Off With More Money in the Hands of Women
When women earn more, everyone wins. RBC Wealth Management notes that women who acquire $5 million or more in wealth and assets often reach a tipping point where they realize they can use that wealth to improve the world around them. Men earning the same amount, $5 million or more, regularly cite tax benefits as the deciding factor on where they decide to give their money. Women in this bracket, however, most often cite the ability to make a large impact.
This ability and desire to share their wealth for worldwide impact is again at the center of the need for women to fully embrace their deserved wealth. A wealth mindset is about embracing your own value and what you can do with it, knowing your worth and not settling, and going for wealth just like any man would—with full confidence.
Sabrina Philipp is an international online business and social media expert who has been featured in Forbes, Business Insider, Marie Claire UK and more. She helps entrepreneurs build intentional, manageable and profitable businesses so they can experience ultimate personal and financial freedom. Follow Sabrina on Instagram @sabrinamphilipp.