Money Smart Women

I'm busy now, but I'll play later!

noreply@blogger.com (Money Smart Women) — Fri, 07 Sep 2007 04:07:00 +0000

I have been very busy recently, as I decided to start a new side business (to add to my full time job and existing side business). I am a big fan of network marketing and am participating with two different companies.

I joined my first company as an independent consultant just so I could buy their products at a discount. I've made many friends and more money than I was trying to make over the past several years.

My newest venture is a completely different type of product, but I think it has the potential to be even more profitable than my first. For one thing, the training that I am already getting from my newest company is far superior to what I got initially from my first venture. In addition, I know so much more about operating a business that I am starting 3 steps ahead with my newest venture.

My target is to make enough money to retire either my husband or myself within the next 2 years. Can you imagine building enough income to be able to work part time from home within 2 years? What would you do if you had that kind of time?

For myself, I look forward to opportunities to volunteer in the local schools and for charitable organizations. There isn't enough time to give these days. But... If I put in the time and work hard at my businesses now, I should be able to play later!

What are you doing to build wealth? I'd love to hear, so please take a minute to post a comment about your dreams and plans to get there! Dream Big!!

Making Money While You Sleep

noreply@blogger.com (Money Smart Women) — Mon, 20 Aug 2007 22:18:00 +0000

Are you looking for a way to reduce your expenses or increase your income? Try making money while you sleep. My husband and I rent out a room in our house to his brother, which helps us make extra payments on our mortgage without feeling a bigger pinch in our own wallet.

Yes, it can be an inconvenience to share your living space with another (especially if you have been living by yourself for a long time. But, if you are serious about reaching your financial goals, this might be one of the ways you are willing to make a sacrifice. You could also have a lot of fun, if you are careful about the person that you invite to rent from you.

Choose your roommate carefully, taking into consideration work schedules, cleaning habits, and financial trustworthiness. A service like Roommates.com can help you match with someone who matches your needs and lifestyle.

If you have enough space in your home, you may even be able to complete a minor remodel to provide a separate living quarter for your tenant. Generally, they would need a bathroom, a kitchenette, and a separate entrance. A bedroom is nice, but not essential for all tenants looking for a budget place to live.

You might also consider living in the small part of your home and renting out the larger portion to someone to get an even bigger share of your mortgage payment paid for. This would allow you to maintain more of your independence, but still reap the benefits of a tenant.

For us, it is a minor inconvenience to have an extra body in the house. Our roommate works swing shift, so we don't even see him most days. Maybe you'll find someone willing to pay a few hundred dollars to sleep under your roof and get you that much closer to your financial goals.

Today vs Tomorrow?

noreply@blogger.com (Money Smart Women) — Mon, 13 Aug 2007 02:51:00 +0000

How do you balance future goals with life today? Is it possible to deprive yourself too much?

I plan to achieve financial freedom before retirement age, so that I can enjoy those golden years while my health is still good. The exact age at which I retire is up in the air, but will hopefully be around age 50. So I save aggressively in retirement accounts and try to make investments that will get me closer to my financial goals.

With that in mind, I still think it is really important to make sure that today's life is rich and fulfilling, despite the fact that I am saving for the future. If I were to scrimp so much that I was unable to enjoy some of the activities that give me joy today, that would mean that I am living only for the future.

At the same time, no one should spend frivolously today with no thought for the future. How can you know the difference?

The best way to determine that comes from an unknown source somewhere in my past. If faced with a choice of spending money today, determine whether you would be spending money on creating a memory or on stuff. Stuff you can do without. Creating memories, on the other hand, is what life is all about!

Certainly you create your memories within your working budget, but make sure you still get out and do some fun things now and again.

Get that Shopping High without going to the Mall

noreply@blogger.com (Money Smart Women) — Fri, 10 Aug 2007 01:26:00 +0000

I love to shop and my boxes of donations to Goodwill definitely reflect the fact that I buy more things than I need. But there is hope for me yet! I have discovered that I can get that same shopper's high without going to the mall (or eBay or any store).

Instead, I go shopping for new stocks in which to invest. I've never had a giant sum of money in my brokerage account, so quite frequently I buy between 1 and 10 shares of a stock. I was surprised the first time I did this that I got such a rush of pleasure and excitement. Imagine buying someting shine and new, going home from the store, and then finding the money used to buy it back in your pocket. This is a little bit of a simplification, as stocks can be volatile and the value can increase or decrease during the time you hold it. But the fact remains that you purchased something you can then hold and cash in later.

As the market dips down, there has never been a better time to buy into a new stock. Take a look at the stock of a company you believe in. See if they are a healthy company with potential to grow. And maybe, just maybe... Go shopping!

Become your own Bank

noreply@blogger.com (Money Smart Women) — Fri, 27 Jul 2007 04:05:00 +0000

I separate my bank account into different sub-accounts so that I can easily track my money. For years, I have had a checking account and two savings accounts. One of my savings accounts was for long term savings (a car, a vacation, down payment on a house) and one was for earning extra interest until I found something I wanted to buy.

Occasionally, I would overspend the money that was in my checking and short term savings account and have to "borrow" money from my long term savings. Because I had set that money as untouchable, except for the purchase of my big ticket item, I charged myself a service fee to "borrow" that money.

For example, if I needed an extra $100 dollars to cover that giant shopping spree I went on last month (see my post on using my credit card), then I would transfer $100 from my long term savings into my checking account and pay the bill that was due. When I got my next paycheck, I transferred the $100 PLUS a $50 service charge back into my long term savings account.

Not only did this keep me from overspending routinely, it also allowed my savings account to grow more when I did have to cover a bill. Far better than putting my service charges in my bank or credit card company's pocket, right?

Credit Cards -- Not the Wicked Witch

noreply@blogger.com (Money Smart Women) — Fri, 27 Jul 2007 03:48:00 +0000

I routinely charge things on my credit card.

There... I admitted to it.

And while I know that I would spend less if I didn't buy on credit, I also see an upside to using my credit cards. If you have the willpower (or monthly income) to cover your credit card purchases, why shouldn't you take advantage of the convenience and the perks that come with swiping that pretty little plastic card?

Let me explain how I use my cards.

1) I have set up many of my bills to be automatically charged to my credit card. I no longer have to worry about due dates or late charges on those bills. I just pay my credit card bill once per month and I live a much simpler life!

2) I pay my balance in full EVERY single month. This is essential. Do not even attempt to use your cards like I do if you are unable to pay your bill each month. Many credit card users even go so far as to deduct the money from their checkbook when it is spent on their credit card. This way they can earn interest on their money and still have enough to pay the credit card bill comes due. It's a great way to keep your spending in check.

3) The original reason I started using my credit cards to pay for gas, groceries, etc. was that I wanted to earn the perks. As long as I pay off my bill each month, those perks are a wonderful treat for me. I've taken many, many mileage purchased flights thanks to my credit cards.

4) Regular use of credit cards, with on time payments, is good for your credit score. An excellent credit score will save you money on future car loans, mortgage rates, insurance rates, and more.

Please remember that credit cards do tempt people to spend more than they otherwise would. I know I am guilty of this. When shopping for new clothes or groceries, I do not tally the amounts in my head -- I know my credit card will cover the amount. I tend juggle after my purchases are made, often returning items to the store or "borrowing" from my savings accounts until I can earn some extra money. If you choose to use credit cards, please make sure that you have an idea how high your balance can get each month and still be paid off. If your budget is really tight, you might want to avoid credit cards for now.

As part of my financial fitness program, I am going to begin tracking my daily spending. You might want to try the same thing if your spending is out of control.

Rescuing my credit card

noreply@blogger.com (Money Smart Women) — Fri, 27 Jul 2007 03:40:00 +0000

When I was fresh out of college, I got my first credit card. I had taken a trip to Europe and signed up for a mileage earning credit card from the airline I used on that trip. It was a great investment for several years, but I have been frustrated by the fact that my oldest credit card (and thus a big chunk of my Credit Score) had an annual fee (what was I thinking?!) and was earning miles on an airline that I found it difficult to redeem miles on.

I had resigned myself to the fact that I was stuck with that decision for a long time, until I started researching cash rebate cards that I could use for my business expenses. I learned that my credit card company would allow me to convert my existing credit card into any of their other types of cards.

I called the customer service number and made sure that my credit history would follow me and that the annual fee would stop. They assured me that both of those things would happen.

So... I converted. I rescued my expensive credit card (goodbye annual fee!!) and will now be earning a reward that I can really us (CASH!). If you find yourself in the same position of holding a card that doesn't really meet your needs anymore, contact your credit card's customer service department and ask them about your options. If I had known about this option, I would have converted my card years ago!

Networking Makes Cents

noreply@blogger.com (Money Smart Women) — Thu, 26 Jul 2007 14:02:00 +0000

Last night I met with direct sales representatives from seven other companies. We introduced ourselves, our companies, and our businesses. We are going to share ideas with each other, as well as referrals if someone is looking for that particular business.

This kind of format has many applications for working women outside of the direct sales industry, as networking contacts can be a valuable source of information sharing and relationship building.

Helene Cruz, assistant director of M.B.A. programs and services at Pace University said that her most recommended career strategy for women starting their careers is to build a network early in their career. You never know when a contact might be helpful, so begin by building relationships with the people around you at work, at lunch, at play, etc. She suggests joining a professional organization, alumni meeting, or attending a networking reception. See her complete interview at CareerJournal.com.

When looking for a networking group, keep your eyes out for one with members who have goals that aligned with your own. This doesn't mean that you all need to be in the same industry, but that you should be working towards similar goals. Contacts made in a networking group may become more than just professional contacts.

Helene Cruz recommends that you begin networking by making small talk with the person next to you at breakfast, lunch, or dinner. Start with a personal connection and gradually move to business information as you get to know one another a little bit.

Your challenge, should you choose to accept it, is to make one new contact this week and begin to nurture your own network.

Best Gift Ever?

noreply@blogger.com (Money Smart Women) — Wed, 25 Jul 2007 01:15:00 +0000

For my 22nd birthday I received a book that, at the time, was not exactly what I had been hoping for. In retrospect, it was the one of the best gifts I have been given. My parents, wise people, gave me Personal Finance For Dummies, 5th edition at this critical time of my life. I read the book and was fascinated with everything included in there. I recommend this book as an overall introduction to finance for everyone from young adults to recent graduates to recently divorced. I will go into specific topics covered by the book in a later post, but wanted to share with you how thankful I am for the foundation it gave me on personal finance.