The Taylor Swift effect: 4 inspiring financial lessons for women

Taylor Swift’s professional music career spans more than 20 years. Having started out as a country singer, she signed her first record deal in 2004.

Fast forward to 2024, and Swift is now a global pop icon with 11 original studio albums under her belt and a host of awards, including 14 Grammys.

Swift has also developed a reputation as a savvy businesswoman who has built an impressive financial empire – in 2023, she became a billionaire. Her recent Eras Tour has reportedly brought in a staggering $1.04 billion.

So, it’s probably safe to say that Taylor Swift knows a thing or two about accumulating and managing wealth.

Whether you’re a “Swiftie” or not, there’s plenty that women could learn about financial planning from the worldwide phenomenon that is Taylor Swift.

Read on to discover four inspiring lessons you could take away from this entrepreneurial singer-songwriter.

1. Forge your own path

As Swift advises, “Just be yourself, there is no one better”.

Over the years, Taylor Swift has undergone a unique musical evolution from her early days as a country singer to the eclectic style she currently adopts, which incorporates pop, rock, and electronic.

Some critics have derided the singer for leaving behind her country roots. However, Swift has refused to be swayed by such comments. She continues to forge her own path and continuously reinvents her approach to music – Time has described her as a musical “chameleon”.

Further testament to the pop icon’s commitment to doing things her way is her much-publicised dispute with Big Machine Records. Swift severed ties with her former record label so that she could take control of the masters of her first six studio albums. This involved painstakingly re-recording and re-releasing the albums – resulting in new masters she has full ownership of.

Swift’s fierce drive to chart her own course provides an invaluable financial lesson for women of all ages, backgrounds, and ambitions.

Indeed, there’s no one-size-fits-all approach to financial planning – certainly not one that’s likely to deliver the results you hope for.

The key to building the life you want – and the wealth to support it – is setting personally meaningful financial goals and creating a bespoke financial plan that will help you achieve them, taking into account your unique circumstances.

For example, it may be especially important for you as a woman – compared to your male counterparts – to boost your retirement savings by increasing pension contributions early in your career.

A report published by Now: Pensions in partnership with the Pension Policy Institute shows that women are retiring with average pension savings of £69,000, while men of the same age have an average pension pot of £205,000.

So, as a woman, you may approach financial planning for retirement very differently than your male friends and family members. This highlights how crucial it is to channel your inner Swiftie and forge your own path when planning for your financial future.

2. Diversify your investments

Taking ownership of master recordings not only put Swift firmly in control of her music catalogue, but it also means she can profit from her songs in a variety of ways – from licensing deals to streaming revenue.

Swift has also invested in real estate, launched her own clothing line and fragrance collection, and created lucrative endorsement deals with brands such as Diet Coke and Apple.

It’s a masterclass in diversifying your investments – spreading your money across a variety of assets.

A diversified portfolio could help you to balance risk and accumulate wealth over the long term. This may be especially important in an unpredictable economy.

However, research suggests that there is a gender investment gap. In other words, women are less likely to invest in shares and other assets than men. Research by Fidelity has shown that 32% of women are reluctant to invest due to a fear of risk, compared to just 23% of men.

Yet, investing offers the potential to build an ongoing income and accumulate the wealth you need to progress towards your long-term goals.

Happily, a financial planner can help you overcome your anxiety about investing by creating a diversified portfolio that aligns with your appetite for risk.

Read more: 5 useful ways a financial planner can help you manage your investments

3. Give back generously

Taylor Swift is well-known for her philanthropic efforts. Throughout her career, she’s given generously to relief funds for natural disasters, Cancer Research, and the arts.

On her current Eras Tour, Swift has hit the headlines for all the right reasons. A report by CNN revealed that the singer has given “life-changing” $100,000 bonuses to the truck drivers who supported the tour. She’s also made generous donations to food banks in every UK city in which she performs.

While you may not be in a position to donate to charity on such a grand scale as Swift, giving back however much you can afford could benefit both your finances and your wellbeing.

By supporting a cause you care about – you might choose to donate to a female-focused charity such as Women’s Aid, for example – you could make a real difference, and it might make you feel good!

What’s more, donating to charity during your lifetime or leaving a charitable legacy in your will could reduce the value of your estate for Inheritance Tax (IHT) purposes. Also, if you leave 10% or more of your estate to charity, the rate of IHT applied to your estate may be reduced.

This month is the perfect time to start thinking about giving something back, as 5 September marks the International Day of Charity.

4. Build a strong team around you

While there’s no doubt that Swift is an empowered and independent woman, she relies on a team of professionals to help her achieve success – agents, publicists, lawyers, and so on.

Similarly, you might find it easier to achieve your goals if you have the right support behind you.

A financial planner can help you create a plan that aligns with your unique needs and aspirations. Additionally, they can help you review your strategy if you veer off course or your circumstances change.

Having a financial professional in your corner can also provide invaluable emotional support. A report from insurer Royal London has revealed that clients who worked with a financial planner felt more in control of their money, more secure and stable, more confident, and better prepared to cope with life’s shocks.

Get in touch

If you’re looking for a financial planner in Bristol who can help you take control of your finances and develop a plan that aligns with your unique circumstances and goals, we can help.

Please get in touch either by email at helpme@aspirellp.co.uk or by calling 0117 9303510.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.