I am a Black woman, and I deserve equal pay. Period!
Yet, my sisters and I make, on average, 62 cents compared to every dollar white, non-Hispanic men earn. Last year the amount was 61 cents for every dollar. We have a long way to go to make this right.
This article explains what Black Women’s Equal Pay Day is, why it matters, and what steps you can take to increase awareness and close the wage gap. Equal pay for Black women is a significant issue because 70% of Black women are the primary breadwinners of their household.
If we are making less as a whole, our ability to build wealth and leave a legacy is even harder. Why? Because Black women have to stretch their income to provide for their families, save, invest, and in some cases, pay down debt at the same time. We have to stand up and change this narrative.
What is Black Women’s Equal Pay Day?
On Black Women’s Equal Pay Day, we raise awareness about Black women’s wage gap and its impact on Black women and their families. This year Black Women’s Equal Pay Day is August 13, 2020.
This day marks the 224 extra days that Black women have to work into the new year before they can catch up to what white, non-Hispanic men earned last year.
Equal Pay Days exist to bring awareness to the wage gap between men and women. Unfortunately, the wage gap is not identical between different races of women. Other Equal Pay Days include Asian-American Women’s Equal Pay Day (February 11), Native American Women’s Equal Pay Day (October 1), and Latina Women Equal Pay Day (October 29).
In 2020, Women’s Equal Pay Day fell on March 31, the last day of Women’s History Month.
Black Women Need Equal Pay
According to NPR, 45% of Black Americans weren’t able to pay rent on August 1. If we had equal pay, Black women would each have an “extra” $23,500 from last year to fall back on.
The fact that we are fighting a pandemic, and so many people are experiencing a disruption in their income makes this NPR statistic even more alarming. With equal pay, Black women could have additional money for an emergency fund or savings. Savings helps keep a family’s finances on track when life happens.
Over a 40 year career earning $23,500 less a year adds up $940,000. That means Black women miss out on almost one million dollars in income compared to white men. Imagine cases where Black women are doing the same job as their male colleagues, but still earning less.
This overall income loss also does not take into account other factors that come up, such as a Black woman taking breaks to go back to school, taking time off to start a family, or any other work break. That’s why Black women need equal pay throughout their careers.
To exacerbate matters more, remember I said earlier, about 70% of Black women are the primary breadwinners of their household.
Women deserve equal pay for equal work. No exceptions.
Steps You Can Take to Close The Wage Gap
Talk About Money, Expose When There Isn’t Women’s Equal Pay
Minda Harts explains in her book, The Memo: What Women of Color Need to Know to Secure a Seat at the Table, that women do not talk about money enough. If more women discussed money in their circles, they would know when their salary was below their colleagues.
I agree with Minda, women, and communities of color, need to normalize conversations about wealth and finances in our families. Money should not be a taboo subject. Instead, personal finances should be a topic of regular discussion easily discussed at the dinner table.
Talking about money also helps women hold each other more accountable for their finances.
Discuss money with your girlfriends, family, and kids. Make the conversations safe spaces to vent and learn so we can all level up together.
Most importantly, before you accept a job offer, ask around for average salaries. If you don’t have anyone to ask, do your research. Sites like Glassdoor and ZipRecruiter can provide you salary ranges for jobs you are seeking and the one you are currently doing.
Most people get their salary boosts through new jobs. So it’s imperative to negotiate your salary if you are going to change careers or companies. Make sure you get the most considerable boost possible.
Understand Your Numbers
Financially savvy women have a sound understanding of their finances, budget, a financial plan, and set goals. It’s ok for your plan and goals to change, but writing something down that you can follow is vital.
Don’t feel like you have to figure out your finances alone. As a Wealth Strategist, I help clients get a firm grasp of their budget and expenses and help them create a plan to build wealth. I am continually showing women how to maximize their income by reallocating dollars from one expense to a wealth-building asset instead. Contact me if you need help.
When you direct money to investments rather than debt, you are setting yourself up for a brighter future. So if you owe any debt, create a debt pay off plan and get out of debt as fast as possible.
My husband and I recently paid off his car. The next month, we directed his car payment to the second mortgage on his first home, which is now a rental property. We prioritized this mortgage because of the interest rate and the balloon payment due in two years.
We do not have any credit card debt, and I paid off my student loans a few years ago. So, the rental’s second mortgage was the best debt to attack next.
Build Your A-Team
Every woman is better with the right team. I don’t know about you, but it’s not my plan to build wealth alone. I want to level up and reach my money milestones with my sisters around me. I want us to thrive (not just survive) together.
With that said, I am not an expert on everything. Therefore, I have progressively built my money team as my income and finances have grown. I have a Certified Financial Accountant (CPA) and Tax Expert to help me track and retain as much money as possible.
I am working hard to build generational wealth and have started businesses to increase my passive income. However, my CPA helps me optimize what I keep.
I also invest in products that have tax advantages and help me lower my future tax obligations. For example, my employer offers a Roth retirement account, and I contribute money to this account because my withdrawals in retirement will not be taxable.
Any money I earn now that is not taxable later, I call tax-free buckets. I am accumulating as many tax-free buckets as possible. I also save money in a life insurance policy because it offers tax-free income in the future as well.
I learned a lot of my tax-free bucket strategy from David McKnight’s book, The Power of Zero. I got licensed in life insurance so that I could apply this concept in my life and help other women do it.
McKnight encourages strategic investing during your working years through your employer’s retirement account, life insurance, and Roth Individual Retirement Accounts. When you follow his plan, you maximize your retirement income and minimize your taxes in retirement. If you do it right, your Social Security income could be your only taxable source of money.
What Else You Can Do
If you want to bring more awareness to Black Women Equal Pay Day, share these images on social media or use the hashtags #BlackWomensEqualPay #OwnYourPower2020 #BlackWomenCantWait on August 13 and the days that follow.
Depending on your position of influence, it’s essential to build diverse teams that include Black women. Hire Black women for your company and pay fair wages and equal pay.
We can only eliminate the wage gap when we put forth the effort to empower Black women and advocate for Black women to earn the wages they deserve.
Also, support Black women entrepreneurs. If you spend money with Black enterprises, you empower them to hire more, spend more, and boost the U.S. economy. Your dollar helps everyone go a long way.
When Black women thrive, we all thrive.