How Single Women can Achieve Financial Freedom after 40: An Interview with Financial Coach Kenia Newell
You’ve heard it said before: more women are choosing to delay marriage or forgo it entirely. They’re living life on their terms, pursuing education, career, entrepreneurial endeavors, and more. Yet, there is a pivotal moment in every single woman’s life when she starts to think deeply about her future.
As parents age and the hair on the heads of childhood friends begins to gray, the question of financial preparedness weighs heavily on her. Much of the available financial advice is aimed at couples and women with children, leaving those who do not fit those categories to adapt the information to their own situations.
That's why I sought out Kenia Newell, a financial coach specializing in empowering single women, to learn how single women can achieve financial freedom after 40.
Can you tell me about your background and how you decided to focus on helping single women achieve financial freedom?
Prior to becoming a financial coach, I was a middle school teacher and vice principal. My passion for helping single women comes from my own story. I graduated college with a management and finance degree but ultimately decided to join Teach For America.
As a first generation college graduate, I didn’t understand the impact of student loans, so learning how to budget became crucial for helping me manage my teacher salary while also achieving goals like homeownership at the same time. Learning to manage my teacher salary and making strategic moves to earn more money as an educator (like moving to another city) was empowering.
When I decided to leave education in 2018, I decided to use my love of coaching and budgeting to start my own business to help other women, just like myself, experience financial peace of mind.
What does it mean to be financially free? What does it look like for single women over 40?
Financial freedom is about being able to live life on your own terms. We’re all working towards retirement, but I think financial freedom shows up in everyday moments. I want women to feel confident negotiating their salaries or their next promotion because they know they have money in the bank.
I want women to be able to leave a bad relationship because they’re not financially dependent on someone else. I want women to feel comfortable going on a once in a lifetime trip because they’ve learned to set money aside for experiences because it’s something they value.
Financial freedom starts with having a vision for how you want to live life right now and in the future.
What financial challenges do single women over 40 typically face, and how do these differ from other demographic groups?
The 40s can be a pivotal point for some women because they’re starting to visualize retirement. At this age, most are also watching their parents' age and might find themselves in a place where they want to experience more but they have new financial obligations like caregiving for aging parents or close relatives. The shift in responsibilities can make them start to question whether they’ll have enough to retire and how they’ll take care of their own needs as they age.
I also think this is a time where women might identify that they’ve been either underearning or that they’ve had significant increases in their salary, but they’re not sure what they have to show for it. I think the 40s can be a place where single women are really looking at what’s next.
Many single women today are side hustling or pivoting into full-time entrepreneurship. What are your thoughts on this trend, and what advice do you have for those who want to diversify their income or start their own business?
My advice to side hustlers and full time entrepreneurs is to have a financial game plan so you have something to show for the additional income stream you’ve created. Having a budget as a business owner whether you’re side hustling or working for yourself full-time is essential so you can be intentional with your finances from the start. Focusing on your business finances from the start will allow you to invest in your business thoughtfully, evaluate your pricing structure, and feel prepared for tax season.
If you’re a side hustler, get clear on the purpose of your side hustle. If you want to use the money to pay off debt - make a debt pay off plan. If you want to increase your emergency fund - make a plan to consistently save money.
As a full-time entrepreneur, make it a priority to invest in your own retirement. Since you are your own employer, set up a structure to consistently contribute a portion of the money you pay yourself each pay period to a retirement account (SEP IRA, Solo 401, or 401k).
What strategies do you recommend for single women to save money, prepare for their future goals, and manage debt?
I will always come back to budgeting as a financial coach. I think budgeting is the most underrated skill because most people think that budgeting is reserved for those that don’t make enough money. I hear clients share with me that they were good at managing money when they didn’t make as much but that’s because you budgeted out of the need to restrict.
Budgeting is the most important skill as you start to earn more because it helps you be more intentional about your spending so you can be thoughtful about your wealth building goals. When you were barely making it, financially budgeting was focused on paying bills; as a six figure earner, budgeting should be focused on wealth creation. Your budget is simply a list of decisions that aligns with your personal values and experiences.
Should single women prioritize paying off debt before saving for retirement or other goals they may have?
I believe you can pay off debt and save money at the same time. Saving money while you pay off debt will help you stay out of debt because you’ll have money for the things that caused you to go into debt like auto repairs, travel, or even a gap of employment. You also want to make sure you’re at least contributing the employer match to your retirement while you’re paying down debt so you don’t miss out on free money from your employer.
How much should single women save for an emergency fund and retirement?
As a single woman, your emergency fund goals should be to save 6 months of your essential expenses. For example if you make $10,000 a month but your essential bills (housing, utilities, food etc.) are $6,000 a month, your emergency fund goal is $3,000.
Retirement is a number not an age. A good rule of thumb to calculate your retirement number. Decide how much you want to spend annually during retirement and multiply this number by 25 - this is your retirement number. For example, if you want to spend $10,000 a month in retirement that means you want to spend $120,000 annually ($10,000 x 12). So your retirement number would be $3,000,000.
What resources and tools do you recommend for single women to learn more about financial planning and investing?
Build a relationship with a trusted certified financial planner. It doesn’t cost anything to have a conversation with a CFP. You can start here to ask initial questions if you feel like you’re off track. Be sure this person is someone who educates you and doesn’t pressure you to buy products or services.
Book I recommend: I Will Teach You To Be Rich by Ramit Sethi and Clever Girl Finance by Bola Sokunbi.
Where can readers learn more about you and your services? How can they connect with you for further guidance on achieving financial freedom?
You can learn more about me on my podcast, Money Files: Wealth Over Now, or you can follow me on Instagram at @wealthovernow.
Leah Hird is the career and money editor for Hope Magazine. She also freelances as a ghostwriter, specializing in crafting engaging marketing content for women-led businesses. You can follow her on LinkedIn.