Unlock Financial Freedom for Women in Engineering

Embrace Your Ability and Cultivate a Financial Willingness

Naveena, a talented engineer, thought she had it all figured out until an unexpected layoff changed her life. But this setback led her to discover the true power of financial empowerment. She dedicated herself to learning, devouring personal finance books, joining forums, and setting achievable goals. This first step is about recognizing our capacity for financial management and having the willingness to learn. For example, you can take a piece of paper and list your strengths and weaknesses in finance. Set SMART goals for your financial future and seek the right resources and support.

Actions that help with this step include educating yourself on personal finance. Start with books like "Rich Dad Poor Dad" by Robert Kiyosaki, "Women & Money" by Suze Orman, or "The Simple Path to Wealth" by JL Collins. Online courses on platforms like Udemy, Coursera, and edX offer personalized learning at different levels. Listen to financial podcasts like "So Money" by Farnoosh Torabi or "HerMoney" by Jean Chatzky. Explore websites like The Financial Diet, NerdWallet, and Bogleheads. And don't forget to seek advice from financial advisors and planners with a fiduciary duty.

Another important aspect is starting to understand how to plan a budget and build emergency savings. Use budgeting apps like Mint, YNAB, or PocketGuard to manage your spending and savings. Aim to save at least 3-6 months' worth of living expenses in a high-yield savings account.

Use Your Everyday to Your Advantage

Kayli graduated and moved into her first off-campus apartment, ready to face the real world. Her initial rejection for a credit card was a wake-up call. But with the help of a bank manager, she learned the importance of everyday financial decisions. This includes understanding your credit score, which is crucial for getting loans and favorable terms. Always pay on time, as it accounts for 35% of your credit score. Build your credit history by being an authorized user on your parents' accounts or qualifying for a credit card from retailers. Ask for advice from your network and avoid maxing out your credit card.

Automating your financial routine is also key. Set up automatic transfers to save money regularly. Automate bill payments to avoid late fees and free up mental space. Start investing early through employer-sponsored retirement plans or individual accounts. Even a small contribution can make a big difference over time.

Distinguish Between Needs and Wants

Kiran, an immigrant in the US, learned the importance of distinguishing between needs and wants. Her grandmother's wisdom helped her prioritize necessities over discretionary spending. She used a simple strategy of considering the source of joy. By allocating her income using the 50-30-20 rule (50% for necessities, 30% for discretionary spending, and 20% for savings and investments), she cultivated financial discipline. Eliminate debt strategically by using methods like the debt snowball or avalanche. Protect your finances with insurance and estate planning. Keep track of your money sinks by budgeting and avoiding impulse purchases.

Invest – Iterate – Experiment – Advocate

Sreyoshi's financial journey started with company stocks. With limited knowledge, she sought guidance from financial advisors and learned about index funds, tax-advantaged accounts, and risk management. Invest for the long term by contributing to 401(k) and IRAs and using brokerage accounts. Build multiple income streams through side gigs and passive income. Negotiate salaries and advocate for yourself and others at work. Use salary research tools like Glassdoor and Payscale. Have your deal-breakers ready and understand your leverage. Negotiate effectively through workshops and classes.

The Society of Women Engineers (SWE) plays a crucial role in addressing financial inequality. Through advocacy and education, SWE-sters influence policy and provide resources like financial literacy courses and mentorship programs. Their Advance Learning Center offers valuable guidance on salary negotiation, financial planning, and retirement planning.

Financial empowerment is our right and our dream. Let's break free from financial uncertainty and work together to build a secure future.