Episode 142. Empowering Your Financial Future: A Conversation with Laura Corbiani
Welcome back to The Innovative Therapist Podcast! Today, we're diving into part two of my conversation with financial expert Laura Corbiani. If you missed
part one, be sure to check it out, as we covered essential topics like money, power, and common mindset blocks around finances. This episode is all about tangible actions to become more financially empowered—because who doesn’t need that?
We’ll discuss key topics like:
* Why and when you might want to hire a financial advisor
* Financial wellness basics
* How to build an emergency fund
* How to optimize your money to create more financial freedom
Let’s dive in!
Overcoming Financial Anxiety
Talking about money can be overwhelming. Many people feel like they need to know everything before they even start, leading to avoidance and anxiety. If you’ve ever felt this way, you’re not alone. Financial concerns can exist even when someone is in a good financial position. The key is shifting from judgment to curiosity about your financial health.
The Importance of an Emergency Fund
One of the most crucial building blocks of financial wellness is an emergency fund. This is a cash cushion set aside in a savings account, separate from investments, to cover unexpected expenses. Here’s a general guideline:
* Single-income households: Aim for six months of living expenses.
* Dual-income households: Aim for three months of living expenses.
Keeping this money in a separate savings account (instead of a checking account) can help prevent accidental spending. Automating a small amount to transfer weekly or monthly can make building this fund easier.
Maximizing Employer Benefits
If you have access to employer benefits, it’s important to take full advantage of them. Some key areas to explore include:
* Retirement Plans: Many employers offer 401(k) matching—be sure to contribute enough to get the full match!
* Disability and Life Insurance: These benefits are often overlooked but can provide essential financial security.
* Health Savings Accounts (HSA): If you’re on a high-deductible health plan, contributing to an HSA is a great way to save for medical expenses tax-free. Unlike Flexible Spending Accounts (FSA), HSAs don’t have a “use it or lose it” policy, allowing you to save for future healthcare costs—even in retirement.
The Power of Investing
Investing can feel intimidating, but it doesn’t have to be complicated. Target-date funds are a great place to start—they adjust risk levels based on your projected retirement year. Investing consistently, even in small amounts, can lead to long-term financial security.
The Gender Pay Gap & Negotiation
One of the biggest financial challenges women face is negotiating for higher pay. Research shows that women tend to apply for jobs only when they meet 100% of the qualifications, whereas men apply when they meet about 60%. Additionally, women negotiate their salaries less frequently, which can lead to earning significantly less over their careers.
A few key takeaways:
* Ask for what you’re worth: Negotiating your salary can add up to over $1 million in additional lifetime earnings.
