Starting a new journey, no matter when, is filled with the promise of discovery and growth. The saying “better late than never” reminds us that it’s never too late to begin something new, even if it feels daunting or we think we’re behind others. It is easy to fall into a comparison trap and to feel defeated before even starting. But remember, we all have our unique timeline and starting late doesn’t signify failure, but rather showcases bravery to move forward despite feeling like we’ve lost time.

overhead photo of four women working at a coffee shop

For many women of color, managing money requires a mind shift. This mind work includes letting go of our scarcity mindset and forgiving ourselves for past money mistakes or circumstances. I speak with so many older women of color who share feelings of shame about their finances. When I ask about their upbringing and the money lessons they were taught growing up, unsurprisingly, many of these women share that money lessons were non-existence in their households. Even while being aware that money was tight or that our parents were financially struggling, money is not a dinner table conversation in our communities.

So why are we so ashamed for not knowing what we were never taught?

Take stock of your feelings, whether those are shame, desperation, sadness, anger, or whatever else money conversations bring up in you. Acknowledge these feelings and try to find the root of why you feel the way you do. Once you’ve done this work you can get started on your money journey. Remember that every step, regardless of its timing or significance, brings you closer to financial empowerment.

Here are ten tips to get you started:

1. Foster Financial Literacy:

Focusing on financial literacy changed my life and I am confident it has the power to change yours. It is so intimidating to get started, but becoming familiar with the personal finance terms and lingo makes it easier to engage. Curate what you’re consuming by listening to podcasts, reading books, and spending your time in ways that will help you achieve your goals. Financial literacy is essential for informed decision-making and you must dedicate the time to educate yourself. Financial literacy is an investment and once you start it will be hard to stop!

2. Assess Your Financial Situation:

To kickstart your financial journey, begin by honestly evaluating your current financial status. Gain insights into your income, expenditures, debts, and assets. This in-depth analysis will establish a clear starting point, enabling you to set realistic financial goals and make well-informed financial choices.

3. Define Clear Financial Goals:

Outline your financial objectives, both short-term and long-term. These could include debt reduction, emergency fund creation, retirement savings, or long-term investments. Precise goals will provide direction and motivation, even for late starters, who may need a more proactive approach to achieve them. Keep reminders of your goals throughout your home or working space to keep yourself accountable.

4. Develop a Budget:

Creating a budget is the foundation of effective financial management. Monitor your expenses meticulously and identify areas where you can reduce spending to increase savings. Employ budgeting tools or apps for organization and control. Remember that we all budget differently and that is okay. Whether you’re using an app, an excel sheet, or writing it down on paper, make sure you are doing what works for you. And it is okay if you have to try a few budgeting systems before you find the right one.

5. Prioritize Debt Management:

Outstanding debts, particularly high-interest ones like credit card balances, can pose a significant obstacle to financial success. Formulate a systematic debt repayment plan that suits your budget and adhere to it consistently.

6. Build an Emergency Fund:

Late starters should prioritize building an emergency fund to guard against unexpected financial setbacks. Aim for a reserve equivalent to three to six months’ living expenses in a high-yield savings account. Do not let this step intimidate you, a high-yield savings account takes minutes to set up! This financial safety net will provide peace of mind and stability.

7. Begin Investing Wisely:

Investing is crucial for wealth building, and it’s never too late to commence. Many of us become investors without even knowing it. If you are a W2 employee you’ve likely been investing in a 401K retirement plan. Review any contributions you’ve made to date and collaborate with a financial advisor to devise an investment strategy aligned with your goals and risk tolerance. Diversify your portfolio to spread risk and optimize returns over the long term.

8. Augment Your Income:

Explore avenues to boost your income, whether through career advancement, side gigs, or passive income sources like real estate or other investments. Increasing your earnings can expedite your financial progress, because while there is a limit as to how much you can cut your expenses, your income potential is limitless.

9. Exercise Patience and Discipline:

Achieving financial success is a journey that demands patience, discipline, and time. Late starters may need to make more significant sacrifices and take calculated risks, but remember that positive changes and financial security are attainable, no matter when you begin.

10. Ask for Help:

For women of color, one of the barriers we faces while striving for financial independence is the lack of communal support. Not because our communities mean intentional harm, but because money is a taboo topic that our communities often avoid discussing. Surround yourself we like minded people who can encourage and support your money goals. Lastly, join Facebook or local FIRE communities, these platform allows you to learn from the experiences of others and provides a forum to ask questions or find educational content.

Embarking on a financial journey, especially when it feels like a late start, is a testament to courage and resilience. For women of color, this journey is not merely a path towards financial stability, but also a stride towards breaking generational cycles of financial silence and scarcity. Being aware of your financial situation, creating goals, and investing in financial literacy are pivotal steps towards constructing a future where financial discussions are not shrouded in shame or fear, but are embraced as necessary and empowering.