What is Personal Economic Power? Why You Need It. How to Start.
Would you describe yourself as financially free? I don’t mean in a mental context in that money doesn’t provide you stress or anxiety no matter what is happening with it. What I mean is, do you have enough money to do what you want, when you want, and how you want? Sit with this for a while. If your answer is “No.” Then you probably don’t have economic power as well. Which I would argue is more important than financial freedom. Nonetheless, if economic power and financial freedom was a logic problem it would be; “Not everyone with financial freedom has economic power. All people with economic power have financial freedom.”
What is economic power? According to the Lifestyle Sustainability Directory, Personal economic power is defined as:
an individual’s capacity to control their financial resources, make independent economic decisions, and secure their long-term financial stability. This power is a determinant of life choices and resilience against economic shocks.
Inherent in this definition is financial literacy; clear understanding of what are a woman’s financial resources; capabilities in short medium and long term financial planning management and strategy, and knowledge and capability to earn wealth.
If you don’t have financial freedom or economic power yet DO NOT FEEL BAD. The fact is, that the vast majority of people, men and women, around the world don’t, and sadly never will. Yes, there are circumstances and forces that will keep people down. But for those of us women who have opportunities, we probably will not obtain economic power because we’re not taught we should want to acquire it. Financial freedom. Yes. Economic power. No.
What can you do with personal economic power?
Reduce your reliance on external, unpredictable factors, which enhances your self-sufficiency and the freedom to align financial goals and actions with personal values.
You can withstand economic fluctuations, such as inflation, recessions and tariffs.
Have the ability to make independent decisions about your money.
So how do you start? There are a myriad of ways. But I’m going to start with the most overlooked one for women, and that is your earnings.
If you’ve never negotiated your salary or rarely have in your career, or you’re putting off a compensation conversation that you want to have because you believe you deserve to make more money; you are walking away from personal economic power. How?
You’re not attempting to take control over your known financial resource.
You’re making a decision, probably, based on an external factor which is how your employer may potentially view your request and how they’ll respond.
You’re afraid to go after your financial goal for fear of failure.
The sad and unnecessary truth is that women are plagued by professional fears, and their earnings is one of them.
This is one of the reasons why I created “How to Negotiate Your Salary.” I know that women at every stage of their career, even executive women, don’t negotiate their salary, delay or permanently defer their compensation conversation. Since I’m in the business of helping women out of their fear, I know this workbook will do that, and give a sense of financial empowerment toward the economic power we all need. As you know every journey begins with a step. Here is one tool for which you can be confident in that all important step.