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As part of the first NJBIZ Women’s Leadership Summit, female financial executives from New Jersey-based companies spoke about the importance of creating and keeping wealth.

Moderated by Catherine Milioti, market executive, senior vice president of business banking, Bank of America, the Nov. 14 panel also featured:

• Valerie Murray, president, Beacon Trust; chief wealth management officer, Provident Bank
• Lorraine Salvo, managing director, Private Wealth Management; head of financial planning, Palisade Capital Management
• Andrea Diaz, partner, SKC & Co. CPAs

During the 60-minute discussion, panelists addressed the value of financial literacy, strategies for budgeting and saving, and how to begin investing wisely.

Additionally, participants delved into building – and monitoring – credit, as well as how crucial it is to have an emergency fund.

They also stressed the importance of seeking professional advice when it comes to financial issues and goals. Especially when it relates to estate planning, wills, retirement and asset protection.

Gaining knowledge

Salvo said, “Women tend to think of money as a pond that it’s a finite number and they can’t lose it. Even if you’re working, even if there’s cashflow, there’s this fear of running out of money … And frankly some of it is founded, because statistics tell us that we are going to outlive our male spouses and it’s a real fear.”

“I think in order to not lose what we have, we have to know what we have first. So, in other words, building awareness around what we have, figuring out what our goals are – short-term, medium-term, long-term – and really trying to figure out what that is and then getting help. And getting support to feel like, ‘OK, I can do this. I’m not in this on my own,’” she said.

Murray said, “I think it starts with making sure that you have the knowledge of the basics for financial independence … Start saving early, but you never know what your personal situation will be or those around you. So maybe you’re not impacted by that or you’re not going through divorce with the loss of a spouse, but chances are somebody who has or will so work together to gain that financial knowledge.”

Tools for empowerment

Salvo said, “I talk about what I do to friends and to pretty much anyone who will listen about the importance of being financially independent. What happens if you get divorced? What if someone passes and you’re on your own? Hopefully that won’t happen. But, I never thought I’d be divorced. Thank goodness I had my stuff together because when I did, I knew what I was doing and was able to advocate for myself properly and get experts where I knew I didn’t know stuff.”

[E]ven when I was happily married, I still wanted to have my own money and my own credit cards and have my own ability to have my credit rating myself, things like that that just empower us.
– Lorraine Salvo, Palisade Capital Management

“When I meet young girls who say, ‘well, I don’t really like math’ and ‘I don’t really understand the stock market,’ I say, ‘you don’t have to understand all of it. You just have to understand enough so that you have some independence,’” Salvo said. “And I’m a divorced person myself and even when I was happily married, I still wanted to have my own money and my own credit cards and have my own ability to have my credit rating myself, things like that that just empower us.”

Paying it forward

The panelists strongly encouraged attendees to seek help. They also suggested attendees look to their own organizations or networks to find someone experienced.

Honorees & Education

• Earlier the same day, NJBIZ honored more than 40 companies and organizations with our Empowering Women Awards. See the full list of winners here.
• Also, during the second panel of the day, Making the Leap, women leaders shared their experiences and advice from climbing the ladder of success. Read that story here.

People may not truly realize what they’re actually spending on items like dining out and subscription services. As such, Salvo stressed the need for budget awareness so there’s more control over spending.

She also spoke on how important an emergency fund is. And, Salvo highlighted rolling over any retirement savings plans from prior employers.

“There’s a lot of the pieces of getting a handle on your financial life and that’s one of them is just really making sure there’s a strategy in place that’s going to move you to wherever it is you want to be, that it’s completely tailored to you and your goals,” she explained.

Other tips

Murray recommended treating salary increases or job changes that result in a bigger paycheck as “savings,” rather than extra spending money.

“And then think about going back to budgeting. Even when you’re about to purchase the $8 Starbucks, for example. Is it really important? Is it important every day of the week or just once a week? And some of those little changes make a difference,” she said.

Diaz encouraged attendees to think about whether their budgets support their financial plans, such as what age they plan to retire or cut back on working.

Diaz said, “My advice is to measure everything … If you have a financial plan, you should measure it up against a budget and against what you actually spent. In all instances, always keep track.”

Diaz said, “I very much enjoy working with business owners and helping them put together their plans and making it a little bit not so stressful. They say money can’t buy happiness, but having transparency into what your finances are doing and having a strategic plan and feeling in control over your money – no matter how little or how much it is- that provides happiness.”