Haley Sacks, better known as Mrs. Dow Jones, is a zillennial finance content creator who has built a successful career by challenging the status quo in the personal finance industry. Her new book, Future Rich Person, argues that the personal finance advice most women are getting is outdated and no longer relevant in today's economy. Sacks believes that the rules of wealth building have changed, but the advice hasn't kept up, leading to a lack of accessible and relatable financial guidance for women.
One of the key issues Sacks addresses is the financial education gap for women. She notes that the industry is often split between 'finance bros mansplaining things on whiteboards' and women being told to skip lattes, avocado toast, and manicures. This approach, she argues, doesn't make wealth building seem accessible or human, and it's not surprising that many women feel overwhelmed and confused about their finances.
Sacks' solution is to advocate for 'Action Money,' or the funds left over after essentials are covered. She believes that high-earning women should treat this money as a powerful wealth-building asset, and she encourages them to automate transfers into investment accounts before lifestyle creep takes over. This approach, she argues, is more effective than trying to optimize small things that don't move the needle.
Another major blind spot Sacks sees among senior-level women workers is the lack of negotiation around full compensation packages. She argues that women almost never push for equity, bonuses, stock options, or deferred compensation, which are crucial for building long-term wealth. Salary, she notes, is active income that stops when you stop, while equity compounds and can provide ongoing financial security.
Sacks also highlights the investing gap for women. She notes that women invest less than men, start later, and hold more cash. However, when women do invest, they outperform men by an average of 40 basis points annually, according to Fidelity's 2021 analysis. Sacks encourages women to open a brokerage account and buy low-cost index funds before they feel completely ready, emphasizing that 'ready' is a feeling that usually arrives after you start.
In her book, Sacks challenges the idea that women should cut their morning lattes to save money. She argues that this approach has never been the problem, and that women have spent years optimizing small things that don't move the needle. Instead, she encourages women to negotiate their salaries and learn to invest, which can have a much greater impact on their financial future.
Sacks' work is particularly relevant for high-earning women, who may not automatically translate their big paychecks into wealth. She points to recent Goldman Sachs Asset Management data showing that 40% of Americans earning more than $300,000 say they're living paycheck to paycheck, a higher share than households earning $50,000 to $100,000. This highlights the need for a more nuanced approach to personal finance, one that takes into account the unique challenges and opportunities faced by high-earning women.
In conclusion, Haley Sacks' work is a refreshing and much-needed voice in the personal finance industry. Her book, Future Rich Person, is a call to action for women to take control of their finances and build wealth on their own terms. By challenging the status quo and advocating for a more nuanced approach to personal finance, Sacks is helping to empower women to achieve financial independence and security.
