"It's easy to prioritize reinvestment into your business, team, or marketing over setting money aside for emergencies—but without a reserve fund, you're one unexpected hiccup away from financial disaster.” - Sarah Nicole Nadler

As a money coach, I work with many women at a variety of income levels. Women (particularly female entrepreneurs) earning $250k+ per year are no strangers to hard work. You tend to be ambitious, work long hours, and aren't afraid to invest and think BIG to make your dreams a reality.

But there are roughly 5 common financial mistakes I see high-income women make, and these financial missteps are why you are STILL not feeling financially secure—or are living month-to-month.

Mistake #1. Having Zero Savings or Reserves

Whether a household or a business... you need to have cash available as reserves in case of emergencies. A business owner also deserves retirement. Both require saving some of what you earn and preferably, at least 20% of it. 

It’s easy to prioritize reinvestment into your business, team, or marketing over setting money aside for emergencies—but without a reserve fund, you’re one unexpected hiccup away from financial disaster.

According to a 2023 survey by the Federal Reserve:

36% of small business owners said they’d struggle to cover a $5,000 emergency expense

For multi six-figure women, this gap can quickly spiral into serious trouble, especially if your income is seasonal, relies on high-ticket clients, or depends on factors outside your control (like supply chain issues or economic downturns).

The goal of reserves is to create a financial buffer so you can weather storms like:

• A sudden drop in revenue.

• The loss of a major client or contract.

• Unexpected costs like repairs, legal issues, or equipment failure.

Without reserves, you risk going into debt or shutting down operations when faced with challenges that could have been manageable with proper planning.

The Fix: The rule of thumb for reserves is 3-6 months of operating expenses, so start by calculating your monthly operating costs, including ads, cost of goods sold, payroll, etc. Then choose an amount you can set aside each month into a dedicated reserve account (bonus points if this is a High Yield Savings Account!).

Mistake #2. Using Personal Credit Cards To Fund The Business (Instead of A Business Loan, Investor or Grant)

Swiping a personal credit card for business expenses might feel convenient, but those high interest rates are costing you more than you think.

If you've done the work of setting up your business as a separate legal entity (like an LLC or corporation) you could qualify for a no-PG loan (where the borrower is the business entity and does not need to be personally guaranteed [PG] by the owner's personal assets). Essentially, the lender only looks at the business assets and credit, not the owner's personal finances.

There are also dozens of small business grants that women either qualify for, or are specifically directed to be used by us!

And that's not even mentioning the possibility of brushing up your negotiation skills and approaching investors ;-)

The Fix: Opportunities to use resources that are not tied to your personal finances in order to start and fund your business are endless. Protect your credit and savings! Learn the tools to finding funding for your business.

Mistake #3. Investing All Extra Cash Back Into Your Business... But Nowhere Else

As an entrepreneur, it’s natural to pour your heart—and profits—back into your business. After all, it’s your baby, your passion, and your primary source of income. But here’s the cold, hard truth: putting all your eggs in one basket is risky.

By reinvesting every extra dollar into your business without diversifying into other assets, you might be missing out on the opportunity to grow your wealth in ways that compound over time and create true financial freedom.

One of my personal favorite strategies for growing my money using compound interest is Value Investing:

Value investing isn’t about chasing trendy stocks or making risky bets. Instead, it’s about looking at stocks the way you’d evaluate a partnership in business.

Ask yourself: is this company financially sound, well-managed, and undervalued in the market? With this mindset, you’re not just investing in stocks—you’re investing in businesses that work for you while you sleep.

Learn my Feminine Fortune Formula and how I pick stocks as a Value InvestHER

Mistake #4. Thinking Like The Middle Class (Missing Out On The Opportunity To Get Guaranteed Returns)

The wealthy 1% approach money in ways that set them apart from the middle class. For them, money isn’t just something to spend or save—it’s a tool for building lasting wealth, security, and freedom. They think strategically about their finances, ensuring every dollar works for them in multiple ways.

This mindset explains why the wealthy often focus on wealth-building strategies that the middle class overlooks.

A classic example of middle class thinking is the way most families approach life insurance.

Most families tend to view insurance purely as protection. While there’s nothing wrong with using term life insurance to provide financial security, stopping there limits your financial potential.

The 1% know better: they leverage life insurance policies, not just as a safety net, but as a way to grow their wealth, create tax advantages, and secure guaranteed returns.

Cash Value Life Insurance is the kind of financial tool the wealthy love—it’s versatile, secure, and designed to build wealth over time. Unlike term life insurance, which expires after a set period with no financial return if you outlive it, Cash Value policies combine life insurance with a tax-advantaged savings component.

Here’s how Cash Value Life Insurance aligns with the wealthy mindset:

• Market Growth Without Risk: policies grow cash value by linking to a stock market index like the S&P 500. However, they’re designed with guaranteed floors, meaning your cash value will never decline during market downturns. The middle class often avoids the stock market due to fear of losses, but the wealthy understand that tools like Cash Value Life Insurance let you enjoy the market’s upside while avoiding the downside.

• Tax Advantages: The wealthy prioritize minimizing tax liability. These policies allow your cash value to grow tax-deferred, and you can access that money tax-free through policy loans. This creates a stream of tax-free income, which the middle class rarely takes advantage of.

• A Dual Purpose: Cash Value Life Insurance policies aren’t just about building wealth—they also provide a death benefit to protect your family or business. This dual functionality is exactly the kind of efficiency the wealthy look for in their financial plans.

The middle class often gravitates toward term life insurance because it’s straightforward and affordable, but this one-dimensional thinking leaves money on the table.

Consider this: you could pay $1,000 annually for a term policy that provides coverage for 20 years. While that’s valuable, that $1,000 isn’t working for you beyond the protection it offers.

By contrast, if you put that same $1,000 annually into a Cash Value Life Insurance, a portin of it would grow over time, potentially accumulating significant cash value.

For example, a policy earning an average return of 6% could generate a tax-free nest egg that supplements your retirement income while still providing a death benefit.

That's some real Girl Math ;-)

The Fix: Start Thinking Like the 1%. The difference between the wealthy 1% and the middle class often comes down to how they think about and treat money. Read books (contact me on social media for a list of my favs). Attend my live trainings. Follow the wealthy 1% stock choices (this isn't financial advice... I said FOLLOW them, not necessarily invest in the same things!).

The transparency and access to the movements of the wealthy 1% we have today are your greatest weapon and shield against financial disaster. Use it.

Mistake #5. Letting Scarcity Mindset Keep You Stuck in Tasks You COULD Afford to Outsource or Delegate

Scarcity mindset can creep in even for women earning multi-six-figure incomes. It’s the nagging thought that says, “I can do it myself and save money,” when in reality, holding onto tasks that you could afford to outsource is costing you more—time, energy, and opportunities for growth.

This mindset often keeps ambitious women stuck in the grind of doing everything themselves, from household chores they despise to business tasks that drain their creativity and focus.

A Home Example: Cleaning and Laundry

You’re spending your Saturday scrubbing floors and folding laundry, tasks you absolutely hate.

At the same time, you’re turning down a weekend networking event or time with family because “there’s no one else to do it.” In reality, you could hire someone for $100 to clean your home, freeing up those hours to focus on what matters most.

Hear me on this: your time as a multi-six-figure entrepreneur is worth far more than the cost of outsourcing. If you could spend just a few of those reclaimed hours brainstorming new business strategies, closing a high-ticket client, or relaxing to recharge your energy, the return on investment is undeniable.

Business Example: Doing Manual Work That Could Be Automated

The same principle applies in your business. Are you manually following up with social media leads, responding to DMs, or chasing down email replies? These repetitive tasks not only eat up valuable time but also limit your ability to scale.

Instead of manually replying to every comment or DM, you could hire me and my team to build you a funnel and integrate ManyChat automations. Imagine how much time you'd save—and how many more leads you could nurture—if these tasks were handled seamlessly in the background. Plus, automations ensure consistency and accuracy, so nothing slips through the cracks.

The Fix: You need to shift from scarcity to abundance mindset. Outsourcing isn’t an expense—it’s an investment. Here’s how to shift your mindset and make smarter use of your time and resources:

1. Calculate Your Time Value:

   • Assign a dollar value to your time. For instance, if your hourly rate is $200, why spend hours on tasks that you could outsource for $20–$50 per hour?

2. Identify Your Energy Drains:

   • Make a list of the tasks you dread doing or that take you away from high-value activities, both at home and in your business.

3. Start Small:

   • Test the waters by outsourcing one task, like house cleaning or social media scheduling. Track how it impacts your time, energy, and productivity.

4. Automate Repetitive Tasks:

   • Invest in tools and professionals who can automate workflows. Whether it’s building a lead-generation funnel, implementing ManyChat, or setting up email automations, these solutions free you to focus on growth.

5. Reframe Your Thinking:

   • Remember, outsourcing isn’t a sign of weakness or laziness. It’s a strategic decision that allows you to focus on what you love and do best.

Summary

Your business is your passion, but your finances are your ticket to freedom. By avoiding these common mistakes, you can transform your multi six-figure hustle into a legacy. If you're ready to step into the role of being an InvestHER in your business, not a hustler, and learn to be a good steward of your money, click here to learn more about my Plan HER Profits membership.