top of page

The Path to Financial Freedom: 5 Empowering Steps for Women

Dr. Kalpana Sundar

For women, financial freedom is more than a goal—it’s a revolutionary act of independence. For generations, systemic barriers such as wage gaps, career interruptions, and traditional gender roles have stifled women’s ability to build wealth. But today, we have the tools, knowledge, and resources to rewrite that narrative.


Financial freedom isn’t about simply having money—it’s about using it as a tool to create choices, security, and a life that aligns with your values. Yet, achieving this goal requires strategies tailored to women’s unique circumstances and challenges. Inspired by key concepts from Mike Michalowicz’s Profit First, this guide lays out five transformative steps to help you take control of your finances, harness your earning potential, and create a legacy of financial empowerment.


These steps encourage intentionality, prioritize risk management, and explore wealth-building strategies that align with your personal goals, risk tolerance, and values.


Step 1: Define Your Vision of Financial Freedom

The first step toward financial independence is to clearly define what it means to you. Women often juggle multiple priorities—family, career, caregiving—which can blur the path to wealth-building. Start by envisioning what financial success looks like for your unique situation:

• Is it retiring early?

• Starting a business? 

• Creating generational wealth?


Be specific and intentional. One of the core principles of Profit First is the idea of “paying yourself first.” Before you allocate funds to expenses, taxes, or others’ needs, prioritize your financial goals by assigning a percentage of your income to savings and investments. This ensures that your vision of financial freedom remains central to your financial plan.


As you set your goals, acknowledge challenges such as the gender pay gap or potential career interruptions. Make adjustments that allow you to stay on course despite life’s uncertainties. Use goal-setting frameworks like SMART (Specific, Measurable, Achievable, Relevant, Time-bound) to ensure your vision is actionable.


Step 2: Master Your Money Mindset

Financial success starts with believing you’re capable of achieving it. Many women grow up in cultures where conversations about money are taboo, leaving them feeling ill-equipped to manage wealth. Reclaiming your financial confidence is critical.

A central concept from Profit First is shifting your mindset from scarcity to abundance. Rather than focusing on cutting back or surviving, think about how you can maximize your resources. This means:


• Viewing money as a tool for opportunity rather than a source of stress.


• Learning financial literacy to empower yourself with the knowledge to make informed decisions.


• Eliminating limiting beliefs such as “I’m not good with money” or “Investing is too risky.”


To develop a healthy relationship with money, engage in financial education tailored to women. Read books, attend workshops, and seek mentors who can guide you through the complexities of wealth-building. Most importantly, recognize that your financial mindset will evolve as you grow—so be patient with yourself and commit to continuous learning.


Step 3: Build a Solid Financial Foundation

Building wealth requires a stable base. Without it, financial freedom can feel out of reach. Borrowing from Profit First, the idea of intentional allocation applies here. Every dollar that comes in should have a purpose, and prioritizing savings and stability over reactive spending is key.


Here are the foundational steps:



1. Set Up a Simple Allocation System: Profit First recommends splitting your money into separate “buckets” for specific purposes. For personal finances, these could include:


• A wealth-building fund.


• A household or essential expenses fund.


• An emergency fund for unforeseen circumstances.


2. Pay Off High-Interest Debt: Debt is one of the biggest barriers to financial freedom. Prioritize paying off credit cards and loans with the highest interest rates, as these eat into your wealth-building potential.


3. Create an Emergency Fund: Have 3–6 months of living expenses saved. This acts as a buffer for unexpected events, such as medical bills or job loss, allowing you to avoid dipping into your wealth-building funds.


4. Protect Yourself with Insurance: Ensure you have health, life, and disability insurance to safeguard your income and assets against major financial risks.

By using a structured allocation system and focusing on stability first, you create a foundation that allows for sustainable wealth growth.


Step 4: Invest in Yourself and Your Future

Investing is one of the most effective ways to grow wealth, but it’s also an area where many women feel hesitant. While traditional investment vehicles like 401(k)s and IRAs are worth exploring, it’s important to fully understand their limitations. For example, funds in these accounts are typically locked until age 59½, and early withdrawals come with penalties. If you believe your money can generate better returns through other avenues—like starting a business or alternative investments—it’s worth considering those options.


Key Points for Investing:


1. Determine Your Risk Tolerance: Everyone’s comfort level with risk is different. Assess how much risk you’re willing to take and diversify your investments accordingly. Women tend to be more risk-averse, but calculated risks can often yield higher returns.


2. Explore Alternative Investments: While traditional stocks and bonds are foundational, consider allocating a portion of your portfolio to higher-risk, higher-reward investments. These might include:


• Real estate.


• Peer-to-peer lending.


• Venture capital or angel investing in startups.


3. Invest in Professional and Personal Growth: Beyond financial investments, prioritize your earning potential. This includes pursuing advanced education, certifications, or skills training that can lead to higher income. Negotiating your salary or taking on leadership roles can also significantly impact your financial future.


The concept of “profit first” applies here, too: you are your greatest asset. By investing in yourself, you can maximize returns not just financially, but in every area of your life.


Step 5: Create a Network for Financial Empowerment

Building wealth is easier when you have the right support system. Surround yourself with people who inspire, guide, and hold you accountable.


1. Seek Mentors and Financial Advisors: Work with professionals who understand your goals and values. Female financial advisors or women-centric investment platforms can provide tailored advice that aligns with your needs.


2. Join Women-Focused Financial Communities: Groups like Ellevest, HerMoney, and Smart Women’s Smart Choices foster open conversations about wealth and provide a supportive network.


3. Talk About Money: One of the principles in Profit First is embracing transparency. While this applies to business, it’s equally powerful for personal finances. Start open conversations about money with friends, family, or colleagues. Sharing tips, successes, and lessons learned can help normalize wealth-building discussions and create a ripple effect of empowerment.


Having a network isn’t just about practical advice; it’s about breaking down societal barriers and building confidence through collective knowledge.


Financial freedom is an achievable and deeply empowering goal for women. By following these five steps—defining your vision, mastering your mindset, building a foundation, investing wisely, and creating a network—you can transform your finances and your life.

Inspired by Profit First, this guide emphasizes intentionality and prioritization. Treat your financial goals as non-negotiable, and allocate your resources accordingly. Recognize that traditional advice, like maximizing 401(k)s or sticking only to safe investments, might not always serve your unique goals or risk tolerance. Instead, explore all your options, educate yourself, and choose the path that aligns with your vision of financial success.


Remember, every small step forward is a step closer to independence. Whether you’re negotiating your first raise, exploring alternative investments, or building an emergency fund, you’re reclaiming control of your financial destiny. The path to financial freedom isn’t just about money—it’s about claiming your power and rewriting your story. The journey starts today, and it’s one worth taking.


Dr. Kalpana Sundar
Dr. Kalpana Sundar

Meet the expert:

Dr. Kalpana Sundar is a formidable force in medicine, entrepreneurship, and mentorship, dedicated to empowering women and embracing life to its fullest. A thyroid cancer diagnosis prompted her to reassess her priorities, emphasizing the importance of balancing career and well-being. She emerged stronger, ready to realign and reinvent herself. Dr. Sundar exemplifies turning challenges into opportunities, demonstrating resilience and adaptability. Now, she consults with Aesthetic Providers on running their med spas more effectively and efficiently to boost profits and quality of life with her 4-step GLOW method: Growth, Leverage your energy, Optimize your brand, and Work through barriers.


Dive deeper into her wealth of knowledge:


Follow:

LinkedIn

bottom of page