Women & Money

Financial Crisis: Resources and Tools

noreply@blogger.com (High_Life) — Wed, 22 Oct 2008 15:28:00 +0000

It seems we can't go anywhere, nor read/listen to any media these days without being bombarded with news about the Global Financial Crisis. While I feel that calling the current challenges such a monumental name adds to and deepens the problem, that is a post for another blog. (Like this one!)

Today's post is about informing yourself, protecting yourself, and making yourself feel more secure and positive about your future. You are NEVER as out of control as you think.

INFORMING AND PROTECTING YOURSELF

If you are a regular reader here, you'll know that I am a big proponent of financial education, especially for women.

Children in our society rarely get ANYTHING in the way of financial and survival training, and this is especially true for girls. As adults, this doesn't change for most of us, as we struggle along from month to month hoping we'll have enough to pay for the bills. Many women face either overt 'finances are the man's responsibility' or subtle 'don't you worry about the finances, darling,' discrimination when it comes to family finances. Even those who handle the family's money are not given full reign in investing the money, nor full knowledge of where the money comes from.

If this is not the case for you, that's fantastic, however I'm still willing to bet you don't know enough about handling your money - how to invest it wisely and make it grow, to make the most of tax laws and regulations, to protect your assets from theft or financial drain in the form of fees, poor earnings or even fraud, etc.. And what about estate isses, potential divorce, employee grudges, random accidents and other potential challenges you may face?

If this 'financial crisis' has served to wake many people up and cause them to take a closer look at what they are doing with their money, then that effect, if not many others, is a good thing. Some basic steps you can take to inform and protect yourself, both now and for your future, include:

Your financial picture: Take a good look. Knowing where we really are is the first step to getting somewhere else. For years, it has been common practice for people to have their heads in the sand with respect to their spending habits. Sit down with all of your financial paperwork and get a good picture of what you've really got and what you really spend. Knowledge is always power (when it's used to make things better).
Credit card debt: Not only are you hurting these days - your credit card companies are hurting too. They do NOT want to write off any more bad debt, and may be more amenable to your requests for lenience. If you can make payments then try calling and working something out with them. Try also speaking with a debt counselor, who can advise the best way to save your credit rating while dealing with your debt.

Know your rights: ...AND your obligations. A meeting with a lawyer, an accountant, an insurance specialist and a financial advisor are always advised, no matter what the financial circumstances. You may want to add your local banker to that list as well. Imagine the benefits and peace of mind of having professionals on your side when you need them. They can save you money, protect you from unforeseen pitfalls, and ensure you are on the right track with your financial planning. Planning should include such things as insurance for disasters (from job loss or injury to unexpected acts of God, death of family breadwinner/s, protection against fraud or identity theft, etc.), plans for your assets should anything happen to you, and making the most of tax regulations. All of your planning should put you in a place of advantage, alleviating your current condition of living in fear and ignorance, perhaps making blunders with consequences you have yet to see.

POSITIVITY AND HOPE

One of the biggest steps you can take towards feeling empowered and hopeful is getting a financial education. This does NOT mean spending four years at business school. What it does mean is acquainting yourself with the ways of the financial world. Learning the common terms, the basics of money management and investing, and brainstorming alternative ways to create income are all a part of the financial learning curve, and you've got to start somewhere.

Local: Libraries are full of resources - just ask the librarian. He or she may not be financially savvy themselves, but can certainly direct you to the right sections. (My local library must think I'm nuts, as I have taken out probably over 200 books on finances and personal improvement over the past few years, but then who has to work at the library (them), and who has created the time and freedom to peruse the books and continue learning and improving (me)?) You may find some money management courses available through local schools or clubs. Also try your local and national business papers, and watching shows such as CNBC.
Online: You can find many group discussions on websites such as Yahoo!. Just search for financial forums and the like, and join up to start learning. You will also find many tools and resources at the Money/Finances section of IncreasingVelocity.com.

At first you may not understand much, but like any immersion program, your mind will begin to assimilate the information, especially if you combine learning venues. If this seems like a lot of time and trouble, just think of the alternative. NO ONE can do this for you, and your own future and peace of mind are worth the price, aren't they?

CHANGE YOUR MIND

Aside from the complexities of how money works, there are challenges which not many people speak of in the financial education world. The two main ones involve a person's financial mindset, and indeed they both have a fundamental effect on what we do with our money, including how much we are able to attract and create. Let's deal with them one at a time:

1) The first challenge with mindset involves our emotions surrounding the topic of money. Although money itself is inert - just a form of exchange - the way we think about it and relate to it is definitely anything but. As you have no doubt noticed, money is one of most emotionally-charged subjects we ever face, affecting many facets of our lives. In order to improve our relationship with money, these emotions - and the limiting and conflicting beliefs which cause them - must be explored and improved upon. Many books and online resources have been created in recent years to help you do just that. Here are a few recommendations:

Build Your Money Muscles by Joan Sotkin: A brilliant book which gets to the heart of how we feel about money like no other I have read. This smart, eye-opening book is filled with detailed analyses and tests for exploring and improving our financial relationship, and is a must-read for this reason. Far from dry and boring, it is enlightening and fascinating, as well as effective.

The Breathing Prosperity blog: This resource was crated for exactly this reason - to help the founders (including myself) and readers explore and transform their/our thoughts and beliefs about money and prosperity. There is a wealth of articles here which deal with our mentality surrounding wealth, abundance and money in general - enough to keep you busy for a while. Warning: you may feel confronted, which is a good thing!

The Personal Development blog list: For tons of online reading, you'll find many choices on this list. A lot of people in the personal development world include financial abundance in their definition of lifestyle and personal improvement, and you'll find that many of these writers address financial issues, especially those relating to beliefs and behaviors.

Accept Your Abundance by Randy Gage: Get ready to confront your beliefs when you read this no-holds-barred, in your face dialogue. Randy is passionate about the lack of financial education in our society, and equally passionate about being honest about - and purging - the limiting beliefs we have about money. A great book by a fantastic gentleman.

You're Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead by Larry Winget: Another straight-talking look at how you got where you are, and the steps you can take to change things, for now and for the future. Larry has become famous for being 'the Pitbull of Personal Development' and was recently featured as an expert panelist on CNBC's The Millionaire Inside.

30 Days to Wealth: My own contribution to the 'wealth mindset' literature, this book combines and delivers the result of years of research and trial and error. Exercises are designed to open your eyes and improve - for good - the way you think about money, enabling you to attract and create much more abundance. For those who are REALLY ready to make changes!

2) Mindset issue number two is also very common, and hurts almost everyone: the belief system we are taught in school which tells us that we must work our butts off and never get anywhere, all the while saving for a far-off retirement. How depressing, and how untrue! This mindset is so pervasive that you will find few people to discuss any alternatives with, so you must go this route on your own. There ARE better ways - ways which will help you achieve financial independence and the joy and peace of mind which come along with it. Here are some books by enlightened people who already know this. Enjoy, and prosper:

The Millionaire Maker series by Loral Langemeier: This smart and ambitious lady will help you think differently about earning money and achieving financial independence. She excels at helping people go from the drudgery of a job they hate to the success and true freedom of owning what she calls a 'Cash Machine' - a vehicle based on your own skills which can lead you to financial independence. Part of her strategy involves learning to invest in assets which produce cashflow, a key piece in the financial independence puzzle. Click here for a review of the third book in the series.

Rich Dad Series by Robert Kiyosaki: This series is a MUST for anyone wishing to shake up their traditional mindset and really see financial independence as a reachable goal. While they are all good, I would recommend as primers Rich Dad, Poor Dad (What the Rich Teach Their Kids About Money, That the Poor and Middle Class Do Not!), Rich Woman (by Kim Kiyosaki) and Success Stories (inspiring stories from real people who have changed their lives that will help you feel that you can do it too!). Also recommended is their Cashflow 101 game, created to assist with this process in a fun way. You can find groups playing the game locally by visiting their website at RichDad.com.

Why We Want You to be Rich by Donald Trump and Robert Kiyosaki: Citing the failing social security pension system and the growing gap between the 'haves' and 'have-nots,' these two gentlemen, no strangers to creating abundance, express their deep concern about your chances if you continue along the standard path. They encourage you to think in terms of winning rather than not losing, and to create financial abundance instead of trying to live below your means and always feeling poor. Very inspiring and encouraging.

The 4 Hour Work Week by Tim Ferris: There is a lot of garbage out there promising to help you work less, especially online...this is not part of that garbage. Tim, from his extensive experience, gives you information you can use. Many people have had their lives changed for the better by the information in this book, and you would have to pay for a number of other books to get the collection of gems contained in just this one.

Cracking the Millionaire Code by Mark Victor Hansen and Robert G. Allen: Both of these wildly successful authors and entrepreneurs are famous in their respective worlds, and their efforts combined in this book make for a powerhouse of information. Truly, this book gives the blueprint for not only achieving wealth but doing it in a way that is 'enlightened,' as in, good for everyone including you, your loved ones and our planet.

As Charlie 'Tremendous' Jones is famous for saying, "You will be the same person in five years as you are today except for two things, the people you meet and the books you read."

This is as true in your financial life as in any other arena. Instead of being frightened, which comes from weakness, become empowered. Yes, there may be horrible things going on, but worrying and remaining powerless is no way to live, and will not create a better future for you. Learn to thrive and not just to survive. YOU CAN DO IT!

Divorce and the Prepared Woman

noreply@blogger.com (High_Life) — Thu, 24 Jul 2008 08:26:00 +0000

When we get married, we believe we'll live happily ever after.

Although we've all heard the statistics - the latest tell us that over 50% of marriages in North America will end up in divorce - we don't think it will apply to us. Like most people when they hear a statistic, we think it applies to 'other' people, and we bury our heads in ignorance and denial...until it happens to us.

While for men the prospect of divorce is challenging, sad and perhaps financially very difficult, it is often the woman who gets the short end of the stick, especially financially. Despite the media portrayal of women who take men for all they've got, the reality is usually far more stark and desperate for divorced women then men.

With little financial knowledge and even less power, women are often left feeling adrift and frightened. They don't know how to support themselves and a family, a skill which men have been taught since they were children. Boys are instilled with the provider mindset, and the unfortunate truth is that most girls are not. Thankfully, this is changing as we raise our girls to be strong and independent, but there is still a long way to go in ensuring our children enjoy equality of opportunity and mindset.

One important step any woman take is to get, and remain, informed. This means knowing your household finances, and becoming knowledgeable about how money works. A basic study of banks and lending institutions, investment and insurance options, wills and other legally important issues is crucial to being prepared in the event of a divorce, or even the untimely death of a husband.

This study need not take much time, and need not be intimidating. No matter how little you know about money, the most important step is to MAKE A DECISION to become informed. Information is power, and you must never leave yourself powerless and vulnerable.

Here are some suggestions to get you started:

Household finances: Gather your household paperwork and begin studying it. Even if you just take a few minutes each morning or evening, make an effort to get more intimate with your family's finances. Calculate how much you REALLY spend as a family in a given month, versus how much is coming in.

One way to help with this task is to write down everything you spend for 48 hours - you may be shocked. Even if you are the one who pays the bills, your picture may not be as clear as it could be. By getting a grip on the true picture, you will be better prepared in the event of a financial emergency, including divorce.

Resources:
Smart Women Finish Rich
Women & Money: Owning the Power to Control Your Destiny

An objective look: Book an introductory appointment with a financial advisor or several (even better). These are usually complimentary, as the advisor is hoping to win your business. Be honest and tell them everything to get the best advice - you don't necessarily have to see these people again. You will receive direction and guidance based on the advisor's experience, and by comparing the advice of several advisors, you will enjoy double benefit: you will learn a LOT, and you may even find an advisor you trust to help you in the future.

Additional important advice: As you did with financial advisors, have at least a preliminary meeting with a lawyer or two, and some insurance advisors. With the lawyer, get to know your rights as a wife and mother, and be sure and discuss estate issues as well. What will happen to you and your children if your husband should unexpectedly die or become incapacitated? What if something happens to you? With the insurance advisor/s, be ready to say no to the sales pitch you may get, and take all the paperwork you can to read and learn on your own. Ask questions, and buy the appropriate insurance when you feel armed with the knowledge to choose wisely.

Increase your knowledge: Begin reading the financial section of your local paper/s, take books out of the library, buy audio sets about becoming finacially independent (try eBay) and listen on the way to work, go to local seminars...the opportunities for learning are emdless, and you can begin right in your own neighbourhood. The more you learn, the more comfortable you will feel.

Resources:
The Financial Learning Curve: Overcoming Frustration
Rich Dad's Success Stories

By following the above steps, you can become prepared for whatever lies in your future. You will take control of your financial destiny, and in the event that a divorce is part of your life, you will stand on steady feet financially. There is enough turmoil in a relationship break-up - don't leave yourself with the added heartbreak and fear of financial hardship. Be smart, and be prepared.

Anyone can do this. YOU can do it!

Helpful articles:

10 Steps to a Money-Smart Divorce

Don't Let Your Ex Trash Your Credit

Your 5-Minute Guide to Sudden Singlehood

The Secret, Magical Money Power

noreply@blogger.com (High_Life) — Mon, 23 Jun 2008 15:09:00 +0000

There is a mystical, magical power in the world of money. It's not talked about much, unless it's made boring and all the magic is squeezed out of it...so that even though you've likely heard of this powerful force, you may not have given it the attention it deserves.

This magical power is the power of COMPOUND INTEREST. See? Didn't your eyes just glaze over in disappointment? But wait! If you'll just keep reading, and give it a chance, this little principle literally holds the power to transform your financial life - all with only the tiniest bit of prompting from you. It's a low-maintenance, hard-working, pure gem of a concept, and FAR too many of us having it working against us instead of for us.

Have you ever heard of (or experienced) credit card debt becoming so unmanageable that most of the minimum monthly payments go directly to interest, and the principal takes 20 or 30 years to pay off? This is the power of compound interest working against the cardholder, and the banking institutions LOVE it! And why wouldn't they? They have loaned out money and are receiving re-payment of it over and over and over again for many years - at many times the cost of the original purchases on the buyer's end. A vacation, for instance, which seemed like a great deal and was put on credit card and not paid in full a month later, could end up costing two or even three times its original price in the long run. Maybe not such a great deal after all...

Let's look at that on a smaller scale. Let's say, for instance, you spend $1.00 per day on a coffee or pop. Would you like to know what that is costing you? Had you invested that $1.00 a day for just one year's worth of coffee/pop - or $65 - at a mere 5% interest, you would have almost $1,000 in 20 years. At first glance, that may seem a like a small amount, but notice that it's almost three times your original money spent - money that could have been in YOUR Pocket. Also, how many '$1' items are you trading your current and potential future earnings for?... (And that's just for one year...)

Now, imagine this principle working in your favor. With only a small amount of invested money, your cash will act like a magnet. The basic principle is this: With each bit of interest you earn on your original amount, you keep it in the account and allow that new total to earn interest, and so on. Each interest-earning period you receive interest on the ever-growing principal, and the savings enjoy a snowball effect - they just keep getting bigger and bigger!

TIP: HERE is a compound interest calculator you can play around with by inputting some of your regular 'treats' and see what they are REALLY costing you. Hint: They're costing you what you COULD have earned, had you saved and invested that money instead. Plus, remember, the more you save the more you earn, thus any extra money you can throw into the pool attracts that much more interest, by adding to the principal amount.

There are a few things you can do to put compound interest to work for you most effectively, including starting early in life, contributing as much as possible to the principal, and of course having as high an interest rate as you can find for your investments. Regardless, there is always a better option for your money than spending it or hiding it under a pillow. Whether you start with a lump sum or put small amounts away regularly, just do something! Let your money do the job it does best - let it work for you!

This seems like a simple concept, and it is perhaps because of this that it slips by most people. It either seems boring, or the power of it is not fully conveyed. Richard Templar, author of The Rules of Wealth, in which he shares the habits and behaviours of the wealthy as compared to the rest of society, has stated that in his observation, wealthy people 'get' (and use) the power of compound interest, and everyone else doesn't. Let it be said here once again: COMPOUND INTEREST WILL MAKE YOU WEALTHY. USE IT LIKE THE TOOL IT IS.

Here are some additional articles from reputable sources which may shed further light on this subject:

Mind Your Finances

Financially Free

Are You Smart Enough to do Compound Interest?

It's All About ME

noreply@blogger.com (High_Life) — Thu, 24 Apr 2008 01:56:00 +0000

I saw a young girl wearing a t-shirt that said this recently, and my instant reaction was to think how obnoxious that is.

...And then, I re-thought. While I'm all for children learning to respect and think of others and not be too self-centered, I realized the more I thought about it what a great message that really is. It's all about me!

How many times, as kids, were we told that the Universe doesn't revolve around us, the world does not just give us what we want, we should just stop dreaming and be happy with what we have like 'everyone else,'? How sad!

Girls, especially, get short shrift when it comes to people telling them how great they are, how talented, how special and how capable...how important. This translates, later in life, to women who lack confidence, and who don't really know how to take care of themselves. In a world that runs on money, this means that many women end up poor and scared, and wishing that the little girl they once were had been taught better.

As women, we are often caught up in all the roles we play: mother, wife, co-worker, neighborhood driver, volunteer, friend...the list goes on. We are bombarded with mixed and varied messages - we look old, we haven't saved enough for retirement, we're beautiful just the way we are, we need to be more youthful and beautiful, strength is beautiful, wealth is evil, especially for women.

We need to invest time in thinking about our true priorities. After all, if we don't define and live our priorities, who will? And whose priorities will we be living?

Those priorities have to include financial independence. There are no two ways about it. Even if you believe you don't need financial abundance, the freedom from worry that comes with having enough is something we can all achieve, and should all strive for. Financial independence doesn't need to be some ideal on a pedestal - it is as simple as having enough cashflow to cover monthly expenses. When you have that, everything else is gravy, and can be saved and invested, which is also, obviously, important.

Put yourself first and enjoy the rewards. For once, think to yourself, 'It's all about ME!!'

Some resources you may enjoy and perhaps share with your kids:

Robert Kiyosaki's Rich Dad, Poor Dad - What the Rich Teach Their Kids About Money - That the Poor and Middle Class Do Not!
A Smart Girl's Guide To Money: How to Make It, Save It and Spend It (for young girls)
Suze Orman's The 9 Steps to Financial Freedom

The 'I Don't Need To' Fallacy

noreply@blogger.com (High_Life) — Mon, 17 Mar 2008 17:14:00 +0000

FACT: Millions of women go through life without taking care of their own finances. From parents who didn't teach us to be self-reliant to school systems that taught us nothing about money, we are definitely at a disadvantage.

Not many parents would say they intentionally left their daughters at a disadvantage, however it is true in many cases that boys are instilled with a 'tough it out and take care of yourself' attitude, which although it may not teach specific financial skills, does allow for the development of survival and negotiation skills which often translate to earning more and handling financial decisions with more necessity and therefore less fear.

The facts are ideed frightening: many millions of women who leave financial decisions to their husbands are left destitute or fear-ridden later in life. Dr. Thomas Stanley's enlightening book 'Millionaire Women Next Door' profiles a number of women who felt that their financial lives were taken care of and found, to their dismay, that things were not as easy as they once thought. This book is invaluable for the insights it offers into the mind of very (financially) successful women, however it also ffers some sobering thoughts on just what we are discussing today. The following are excerpts from the book:

You must develop self-reliance now. Otherwise, sometime in the future you will have to deal with the inevitable consequences of this lack... / ...Attention, women! This is a wake-up call. You can love a man with all your heart and admire his sincere intentions when he tells you 'I will always be here for you,' but never, ever believe him or anyone else who tells you:

You never have to worry about money. Let me take care of the economic issues for you.
- or -

You do not need to concern yourself with ever being on your own or paying your own way. That's why I'm here.

... / ...The odds are about four to one that your husband will die before you do... / ...Women, whether you work outside the home or not, you must develop budgeting, saving, and investing skills. ... / ...You must insist on sharing the responsibility for investing your way to financial independence. If you don't know how to deal with money, it will not matter if your husband leaves you well off financially. You may not even be certain how to judge those professional money managers who want you as a prime client. If you do not have investing skills, you, the millionaire widow, will likely be uncomfortable, even frightened, about the prospect of having to deal with money issues for the first time in your life.

I might add to this that whether your husband leaves you millions or nothing, fear of the financial world which stems from ignorance leaves you very vulnerable to people who would take advantage of you and leave you even worse off.

However, the past does not equal the future. Handling money in profitable and intelligent ways is a skill that can be developed by anyone, and that means you. Even if you think you know something about finances, learn more. There is more to learn than can be learned in a lifetime, and it can and should be really fun once you get into it. The higher your comfort level, the more astute an investor you will be. As you learn to judge opportunities wisely, you will feel a sense of self-confidence and power that, ironically, money cannot buy.

Where to begin? It doesn't matter. Just begin. Read, ask questions, learn and learn some more. If you feel you don't have the time, wipe that excuse right out of your mind with the sobering thought that someday you may be left alone and frightened about your future, wishing you had invested (no pun intended) the time NOW. Anyone can do this. YOU can do it!

P.S. For those who feel this is a 'big' challenge, you might enjoy reading this article: The Power of Underachieving.

The Financial Learning Curve: Overcoming Frustration

noreply@blogger.com (High_Life) — Mon, 04 Feb 2008 23:30:00 +0000

The first step to taking control of and improving our finances is education.

For many people, this involves suddenly paying attention to a subject which they perceive as boring, foreign and possibly intimidating. Most people begin by trying to wade through the financial section of the daily paper and/or going to the library and taking out books on finances.

While this 'plunge in' approach to learning can be a great way to start, because it is so intense it can often be daunting, and cause people to feel overwhelmed and give up.

Fear not, as these feelings are normal, and things actually WILL get better and more clear. In fact, the more you learn about the financial world, the more FUN you will have dealing with your finances. As with anything you feel you are good at, what now seems like a chore will become a pleasure, especially as you begin to see the results of your efforts.

Below are some of the more common feelings which accompany a woman/person starting out on the journey to financial knowledge and empowerment. Read them and take heart knowing that you are not alone; far from it. Many women have blazed this path before you, and many more are travelling it along with you, feeling the same frustrations and overcoming similar challenges.

Embarassment/intimidation: 'I don't know much about finances, but I don't want anyone else to know.' We pretend we know and we don't ask questions. After all, it's easier to be ignorant with no one knowing (maybe they'll think we know) than to admit we don't have the answers. We may not even have the brightest of questions. SO WHAT? Asking questions is how we learn, and life is short. If we always take the long way in our learning - struggling through books and articles full of terms we don't understand - then it will take us far longer than necessary. A few questions asked can make a huge difference in your understanding. Swallow your pride and remember that you're doing this for YOURSELF. Your financial freedom awaits, and the fastest way to get there is to learn faster and put your money to work sooner. No other person's opinion is more important than that.

Frustration/demotivation: You are extremely motivated to improve your financial future and you dive right in. You read the financials every day and they begin to seem somewhat familiar. Somewhere along the line, you begin to care less, to let things slide. You skip a day or two, and you begin to ask yourself why you're really bothering anyway - can this really make that much of a difference?...

This is frustration, masquerading as demotivation. Take heart: this too shall pass. Just as when beginning a new diet or exercise regime, there comes a time when we hit a wall. What's actually happening is that our inner beliefs - in this case about money - are sabotaging our efforts to change. Because we are unaware of this, we rationalise our slips by telling ourselves it was all no use anyway.

Now is the time to do some work in uncovering your internal beliefs about money. How you behave in any given situation is as much a function of your beliefs as your intentions. They are in there and they're holding you back, and can be found by exploring your reactions to what you are doing. For instance, if you are thinking things like 'I'll never learn enough to make a difference' or 'I'm not smart enough for this,' you are coming up against your internal beliefs. You can counter this in many ways, including:

a) carrying on anyway and pushing through the wall,

b) examining the beliefs and refuting them with postive affirmations, such as repeatedly telling yourself you are smart, capable and powerful,

c) searching out some role models and having conversations which renew your fire for learning and improving your finances,

d) purposely remembering times when you felt empowered and strong, no matter the situation. For example, if you once ran a marathon and felt a fantastic sense of accomplishment afterwards , close your eyes and conjure up that feeling. Strengthen it and hold on to it...then carry on with your reading and learning in the financial arena. Everything is connected - when you feel great in one area, it flows over to others and gives you the strength and motivation to carry on.

Sense of isolation: It's normal to have times when you feel alone during this journey. This is especially true if you have no support within your circle of family and friends. There are many ways to remedy this, and you are never alone. Try going online and finding blogs, forums and articles about and by women who are struggling with the same issues you are. Believe me, there are millions. Try joining a local group or two - an investement group, a women's finance group or even a Cash Flow game in your area. If all of these ideas are new to you, a good place to start would be to go on google.com and type in something like 'finance meeting my city' (replace 'my city' with your city), or 'women's finance advice' and follow some of the links that come up. There are more resources available to you than you may now believe!

'Huge mountain' sydrome: Closely related to the demotivation of point number one, this feeling comes when the learning (or doing) challenge seems so huge that we feel we'll never get a grasp. Try bringing to mind the last time you learned something difficult, even if it was a long time ago...driving a stick shift, learning a new job, etc.. Recall that with every new thing we learn, there is a period when we feel overwhelmed by all the information, and feel we'll never get it. Also recall that things usually seem most cloudy just before they become clear. As with every skill you now take for granted, this too will become second nature. Keep at it and the rewards will be well worth the effort.

Procrastination on action: You're feeling like you'll never know enough. You've learned a lot, but somehow you never feel confident enough to put that knowledge into action. The translation of knowledge into action is not the big step you may be making it out to be.

An analogy I love is one I once heard from a mentor, Brian Tracy: Once an aircraft takes off, it can adjust its' trajectory any number of times in order to ensure it reaches its' destination. Based on feedback about the wind, etc., the numbers can be adjusted accordingly...BUT without being in the air, none of those adjustments are possible. It takes the aircraft being in flight to enable it to receive feedback and make adjusments. Your finances are no different. If you have to start small, then do that - but DO IT. The sense of accomplishment you'll get from taking that first step will nudge you towards further action. Take that first step - every journey begins with one step.

Anyone can do this. YOU can do it!

Money, Weight-Loss, and Relationships...Oh, My!

noreply@blogger.com (High_Life) — Wed, 19 Dec 2007 21:19:00 +0000

If you have never noticed the parallels among various aspects of your life, then this article is meant for you. We are wholistic beings, and as such we tend to react and act in similar ways in varied situations. Similarly, the same type of principles apply, whether we are discussing money, relationships or health. For instance:

Calories vs. dollars: Burn more calories than you consume - lose weight. Save more money than you spend - have money. Simple! Sometimes we complicate things in order to feel as if they are not accomplishable (is that a word? If not, it seems to work).
Reactionary living vs. conscious, goal-oriented living: Whether you eat a tub of ice cream after a fight with your husband, an upsetting work episode or after a small diet 'slip-up,' the result is the same - you are reacting without conscious thought, and usually it is to your detriment. We all do it. Conversely, getting up at 6am consistenly to work out, making a decision ahead of time not to jump to anger when triggered, and saving part of your paycheck every month are ALL conscious decisions. All will benefit you, both in short-term confidence and motivation and in long-term, positive results.
Dreaming vs. settling: Do you dream big dreams, or is your most common sentiment 'I can't change anything?' Whether you feel you are stuck in your job or your relationship, the concept - and the feelings - are the same. In the same way, if you are of the attitude that you can always learn and grow from every situation, and that you control your destiny by your choices, your life - from finances to relationships - will just keep getting better from here on in. How can I tell? Because I know that it doesn't matter what happens to you; what matters is how you handle it. Of course we have all heard this, but it really does ring true.
Long-term vision or instant gratification: Did you want to skip reading this one because it made you cringe? Often, the reason we feel the need for instant gratification is deeper than just selfishness or impatience. Below this are some deep, swirling emotions and beliefs. For instance, our survival instinct whispers to us that we must gather NOW. We must get it while we can, because we cannot be sure what the future holds. Perhaps we do not trust ourselves, or the people around us, so we really can't be sure that we will reach for those dreams we harbor; we'd better enjoy life now, and besides, there isn't enough to go around, so we must be sure and experience and have what we can. We deserve it, after all - this is a big one. When we deny ourselves, somehow our subconscious feels slighted and stamps its' little feet: "I want it NOW! Why can't I have it NOW??" So we give in to our fragile ego and buy and consume things now to make ourselves feel worthy.

Instead, when we gain the confidence and long-term vision to consciously create our lives, we can quiet our ego and those 'what-if' worries. The future picture becomes bigger and more important than the present wants. It is an amazing process to begin looking to the future, and to do so we must ensure that we focus on the benefits such behavior will engender. If we don't, our current selves will revolt, and we will give in. Each time you have a little money, for instance, your brain may scream 'spend it!!!' even as you consciously know that saving it is a wiser choice. Focus on the bigger picture; do whatever it takes to create a shining future for yourself in your mind. Picture the growing wealth, the happiness and confidence you will feel, and BE that future self in your mind if you need to.

The list could go on, but this is enough to illustrate the old saying that 'wherever you go, there you are.' Examining your behavior and beliefs in one area can and will affect every other area in your life. Make changes in the way you handle your relations with others, and like a domino effect, all the facets of your life will be equally affected. Try it, and reap the rewards. Anyone can choose to take more control of their lives and start creating positive results. YOU can do it!

Avoiding Holiday Insanity

noreply@blogger.com (High_Life) — Fri, 07 Dec 2007 21:21:00 +0000

Happy Holidays!

What a nice thing to hear...and what a stressful time of year it is for many people. For anyone celebrating Holidays, whether Christmas, Kwanzaa or the upcoming Chinese New Year, there are usually excesses and expectations which come along with the celebrations. We all love celebrating, but many of us share the secret dread of escalating Holiday costs. Visits with cherished friends and loved ones are more frequent this time of year, and everywhere we go we feel the obligation to bring 'a little something.' From the office to the doorman to our kids' teachers, it seems the expenses add up without our even noticing it sometimes. Even the preparation of all those wonderful Holiday dishes and desserts to share at gatherings can get expensive.

While it is not easy to cut back on what we feel is necessary for the Holidays, there are some ways in which we can gain perspective, so that we don't lose our heads and go overboard. Try the following this year to help create a more memorable and less financially painful Holiday experience for you and your loved ones:

Family traditions can be a great way to bring meaning to the Holidays, and most do not cost much, if anything. When I was young, for instance, we used to make homemade decorations for our Christmas tree, such as strings of cranberries and popcorn, and glass balls with glued sparkling designs on them. For households with young kids, these kinds of Holiday traditions will be what they always remember, because you are spending time with them and they appreciate that more than anything else. If you don't have any traditions, try creating some new ones!
Remembering the less fortunate is always a good idea, but this is especially true at the Holidays. Just when you think you are running out of money, remind yourself that there are millions of people who do not have the luxury of celebrating any Holidays in the way that you do. A little donation can go a long way, particularly in poverty-stricken or war-torn countries. Sponsor a family or a child, or donate to the Salvation army or any number of needy charities. Not only does a person or family benefit from your generosity; it also feels great to know you are part of a solution, and it helps cultivate that connected feeling that is such a cherished part of any celebration.

One organization that is doing fantastic things is KIVA, which helps by lending money for small business ideas in poverty-stricken areas of the world. For more information, please visit http://www.kiva.org/.
If you simply cannot donate money, try donating a little of your time. You will serve as an inspiration and a role model by helping others. Soup kitchens, shelters, surrogate Santa programs and the Salvation Army are just a few places where you could offer a little help this season. There is never a shortage of need.

Here's a really great idea for gaining perspective and saving money: Remember the credit card bills last year. Often, people are hit with sticker shock after Holiday time, because the shopping and eating done in celebration was done in small increments, and seems easier to justify little by little. They then spend the first pasrt of the New Year regretting their excesses, but by next year they have forgotten this painful feeling. If you do not pay your credit cards off in full every month and would like a real eye-opener, go back and look at last year's statements: you may still be paying for last year's purchases, and possibly many times over once interest is factored in.

Life is short and transient. Every year, it seems, we lose at least one person whom we have loved, and new people come into our lives. We do not always acknowledge the people we've lost when we are celebrating; sometimes it seems awkward to say anything, or just too painful. Perhaps we can change this, and begin to treat Holiday celebrations with reverence for all life, which includes remembrance of and gratitude for those we have loved and lost. Try creating a speech to commemorate someone who cannot be with you for the Holidays. Light a candle for them, and celebrate their life with joy. This can make Holidays much more personal, memorable and meaningful.

Be honest with your friends and family. You love them no matter what, and money should have nothing to do with it. If you are feeling - usually unspoken - social pressure to buy gifts and food all the time, chances are they are too. Perhaps you could all get together and have a money-saving potluck, and instead commit to investing some of your saved money wisely. Tell people how much you care about them, and simply explain that expressing that with presents just isn't an option this year. You may be surprised at how much they understand and appreciate your sentiment.

Whatever you do, stay safe and dream big dreams for the New Year. By saving more money now, you can start the new year wisely and with confidence. This is the most difficult time of the year, financially, for many people to get through. If you can do it and feel great about it, you're well on your way to having a fantastic 2008. Cheers!

Are You The Boss (of Your Money)?

noreply@blogger.com (High_Life) — Mon, 19 Nov 2007 00:08:00 +0000

Being wealthy means being in charge - of our choices, our money, and ultimately our futures. When we are in control we make conscious choices about what we will do with each dollar we generate: we may put it to work to make more dollars, or we may spend it on something we have allocated it to, but always we are in charge.

When first starting out, we may feel utterly out of control, and it this terrifying and defeating feeling which leads us to seek control, calm and a larger sense of choice. We begin learning, and gaining skills and knowledge. We begin to make different choices and enjoy - or regret - the consequences.

On the road to financial awareness and intelligence - and eventually independence - there are signs. These signs tell us how we're doing, and they direct us accordingly, if we listen. Sometimes we ignore the signs, especially when we perceive them as negative. They threaten our sense of comfort and of self, so we bury them, along with our reactions. However, awareness and acknowledgement are what we need. They lead to the changes we seek, and so we must heed these signs if we want to grow and increase our financial intelligence.

The following is a list of signs that indicate you could have more control over your finances. If you are reading this column you are already on your way, so congratulations are in order. RTake a deep breath and see if any of these signs apply to you. If they do, swallow your pride and look at the bigger picture - the wonderful, bright and shiny financial future you are creating for yourself by facing your less than shiny past decisions.

Balance Avoidance: This sign occurs when you go to take money out of the bank machine and you dont know what your receipt will read, or you are afraid to even look at the numbers. The same applies if you are unsure of what your mailed bank statement will read, and doubly if you are afraid to open it and look at it. When you are in control you will look forward to ensuring your balance is exactly as you expect it to be. It will not be more, because you KNOW your own money, and if it is less, you will know someone has made an error and you will pursue the correction of said error. The first step in reaching this point is to separate your emotions from your finances. Try and look at things objectively; forgive yourself and move on, and start keeping track of your hard-earned money. Never stop counting.
Passivity: You rely on someone else to make suggestions (broker or advisor) or take care of money tasks (husband). While this may seem a reasonably safe route for many women, the facts and statistics tell us otherwise. Women form the majority of those who live in poverty, and it is not just about those who live in bad neighborhoods or make poor choices. Many women are shocked to find themsleves with little or no money in their later years, just when they thought they'd be retiring in comfort. For some eye-opening information as well as some strategies to overcome this wall of misperception, try What's Your Net Worth? by Jennifer Openshaw, and Women & Money: Owning the Power to Control Your Destiny by Suze Orman.
Disinterest: You are not interested in money. If you find financial websites, television shows and newspapers boring, or just generally feel the subject of money is not for oyu, then you certainly cannot be in control of your finances. This is can be hiding a fear of the unknown, a sense of intimidation, or ignorance. See the next point.
Ignorance: You have not read a book about finances in the last year (if ever!). The subject of money gets more interesting the more you learn. Indeed, as you see how what you are learning applies to your specific ability to create and to keep more of the green stuff, your interest level rises proportionately. It becomes extremely exciting as you prgoress towards mastery and financial independence. No matter how intimidating or boring it may seem, start reading and don't stop. At some point, things will begin to gel and you will feel a growing sense of empowerment and control. Then let us try and stop you!
Crunching the Numbers: You don't shop around for financial products eg. mortgage, bank accounts, investments. When you feel your efforst in this arena won't make any difference, or you just can't be bothered, you haven't seen the big picture. Take a look at the chart below and compare the difference a few percentage points can make over time. It is based on an initial amount (invested or spent). Remember, this chart would apply to interest paid on debt in the opposite way as interest paid on investments. Every penny you can manage to put in your pocket or not pay in interest is money that can work for you to build your fortune.

Interest Future Value Future Value
Rate (20 years) (40 years)

4% $2222 $4,801
5% $2712 $7,040
6% $3310 $10,286
7% $4038 $14,974
8% $4926 $21,725
9% $6009 $31,409
10% $7328 $45,259

I'm-not-worth-it-itis: You feel you are worth more at your job but haven't done anything about it. It doesn't matter whether you are self-employed and not asking enough for your work, or you have a traditional job: you know when you are being undervalued. It may be you haven't had the self-esteem in the past to feel worthy of more money, or perhaps it is your boss who has allowed you to languish in a low-paying position. As you gain more financial knowledge your self-esteem will increase as well, and you will find yourself intolerant of receiving anything less than you are able to generate. When you know every dollar counts and you are in control of your finances, that control bleeds over to all aspects of your life. If you feel you are underpaid, and especially if your job is your onlu source of revenue, you need to step up and make things happen. Only you can make whatever changes you feel are necessary to ensure a birght financial future, and that includes making as much money as possible within your working years.
Lack of Strategy: You cannot name at least a few strategies you employ to save on taxes. This is not a trick. Anyone with true control over their finances knows that there are many factors which affect the bottom line. It's not about how much you make so much as about how you keep. Like shopping around for financial services, knowing your rights when it comes to tax payments can add up to significant savings each year, leaving more in your pocket. Your tax bracket and payment obligations are NOT set - there are many perfectly legal ways to offset and mitigate taxable events in your life. To become financially savvy and independent requires knowledge of all factors which affect your pocketbook, and that includes tax strategy.

While this list is not exhaustive, it may bring out emotions in you which you recognize. It is these emotions - fear, embrassment, disdain, regret - which trip us up when it comes to money. We must learn to look at our finances with objective eyes, to push through any guilt or fear we are experiencing and keep our eyes on the prize. If/when you can go through this list and confidently say none of it applies to you, you are well on your way to financial independence. Remember, you are not alone, and anyone can do this. YOU can do it.

Treats or Self-Punishment?...

noreply@blogger.com (High_Life) — Mon, 15 Oct 2007 16:36:00 +0000

Are you crystal clear about your financial situation? Do you know exactly where you stand, where you are going (by choice) and how you will get there?

If not, take heart and keep reading. You are not alone. When it comes to women and money, we have more incentive and opportunity to spend on 'little things' than men do, and we are often more deeply in denial about why we do the things we do. We are bombarded from all sides with suggestions on how to 'treat ourselves better', and unfortunately, these treats usually cost money. Had a hard week at work? Treat yourself to a manicure or a massage at the spa...after all, you deserve it!

Be clear. This ISN'T about deserving. We are all worthy and deserve to be pampered, both by ourselves and others. The bigger issue here is taking care of ourselves financially. The ads are so grossly misguided as to be disgusting, if you really think about it. What good is a manicure to a woman if she is getting it at the expense of her future? If she knew that someday all those little treats would not only cost her freedom and happiness, but would prevent her from having the rosy picture she sees for herself, would she make the same decisions? If someone re-framed those 'little' purchases and showed her how much she could accumulate by investing the money regularly instead, what do you think she would do?

Just your own mental responses to the above questions will give you some clues as to how deeply this 'spend' mentality is ingrained in you. The truth is, those of us who have learned or decided to truly put ourselves first financially do it by keeping and growing our money. All the 'little' things that make us feel happy and centered are far sweeter when we are not worrying about paying for them. Even the deep peace and balance we can experience by practicing yoga, meditation and other forms of self-appreciation can be deepened by the satisfaction of knowing we are in control of our financial futures. The opposite feelings of terror, lack of control and uncertainty about the future eat away at our peace of mind, no matter how many tools we may employ to hide or dissolve those fears.

In Wealth of Experience - real investors on what works and what doesn't, Vanguard financial writer Andrew S. Clarke shares stories submitted by 600 Vanguard clients. These are real people who share their real results and lessons about investing and creating financial freedom, and the most common sentiments are also the most telling. For example, "You can't invest and grow money you don't have. There is no better way to build wealth than saving," "Spend less than you earn and invest the rest," and "It doesn't matter how much you make, it's how much you save." We know, we know! But do we? If people who have made intelligent choices financially keep telling us these things, but instead we listen to corporations that would rather see our money in their pockets, we will never join the ranks of the financially intelligent.

M.P. Dunleavey, financial writer for MSN Money and author of the book Deal With Your Debt, wrote a column this week about the lies we tell ourselves about money. In 3 Lies We Tell About Money, she helps us face the lies encouraged by every ad we see. The article may help to reinforce my assertion that you are not alone in your behaviors, and comes complete with examples as well as suggestions about how to change our mindset. Dunleavey asserts that 'You can't make a complete financial transformation until you learn to spot the ways you may be less than honest about your own money picture -- and face your financial reality.'

Those small pleasures are adding up and taking away your ability to create wealth. A wise investor from Wealth of Experience (see book - above) stated that he sees credit card spending and debt as negative investment. How brilliant! The next time you are tempted to treat yourself, instead try punching that purchase amount into a savings calculator and see what you are really depriving yourself of. Then REALLY treat yourself and keep it in the bank! You'll have plenty of spa money later.

noreply@blogger.com (High_Life) — Tue, 11 Sep 2007 19:37:00 +0000

If you are like most people in North America, you were raised in a middle-class environment or perhaps even in poverty. While thinking in terms of class structure comes with judgment and I don't really like using the word 'class', the fact is that there are certain socio-economic categories as defined by economics books, and each level has its' own set of beliefs and perceptions.

You were taught certain theories and beliefs about money - what it means, how it is acquired, how to talk about it and what to do with it. Even if the subject of money was not overtly discussed as you were growing up, you absorbed beliefs from the actions and words of your parents and other mentors.

Have you ever stopped to think about your beliefs and ask where they came from? Have you ever questioned their validity, or whether they are serving your current goals? Do you have any financial goals, and are they in line with what you really need and want?

In my study of wealth and the financial world, I have discovered that the concept of money is far more fluid than many people think. Money is a tool, and like any tool can be used recklessly or with intention to serve a purpose. It can be wasted or spent wisely or put to work to make more. It doesn't belong to a 'chosen few', nor is it meant for any 'special' people. It is yours to use and to accumulate, just as I may do the same. In your quest for financial independence, it is important to ensure that your actions and beliefs reflect the truth about money, rather than any belief systems you may have been taught. For example:

Anyone can make money - a little or a lot. It is up to you and no one else. Money is our form of currency, and it is necessary for life's daily functions. The more you have, the easier certain things will be.
Money is fluid, not stagnant. The $10 bill you have in your wallet has been through many hands, and been treated in many different ways. Do not think of money as finite. Rather, it is simply a form of flowing energy, and also works like a magnet. If you keep it, and love it, it will attract more.
You can control what happens to your money by directing it accordingly. Your money is yours, and no one can force you to use it wisely or foolishly. People can advise you, but ultimately what happens to it is your responsibility.
Education and knowledge will lead you to make more intelligent decisions when it comes to money. Learn about finances and empower yourself to make informed decisions.
There are things you do not know and there is nothing you cannot learn. The more you learn, the more confident you will feel, and conversely the more you will realize that there is more to learn. Never stop your financial education.
Wealthy people think differently. By learning to think differently and by learning new money skills, you too can increase your prosperity and significantly improve your financial future. Try Rich Dad's Cashflow Game for a good lesson in perceptions about money and how it can work for you.
It does not take brilliance or instinct to make and keep money. It takes knowledge and judgment. Judgment comes with experience, and experience comes when you apply your knowledge with action.
Everyone started at the bottom. Even those who inherited money have had to handle it wisely if they want to keep it and watch it grow.

Although guidance is important, the most important thing you can do is empower yourself, with knowledge and then with action. Get started today and take the first step toward a healthy financial future.

Rewarding Yourself vs. Denying Yourself

noreply@blogger.com (High_Life) — Mon, 27 Aug 2007 01:34:00 +0000

Does the word budget make you squirm? How about phrases like cutting back, sacrificing now for long-term gain, going without and living below your means?

Many times what keeps us from creating wealth is not just a lack of knowledge, but the feeling of resentment that stems from it. We think the resentment is about not being able to spend freely what we work so hard for, but the resentment only exists because we have not seen the beauty and power of money growing: the reward has not been made real for us. When we haven't learned to appreciate the value of our actions, we see only the pain and not the pleasure (which FAR outweighs the pain, and in fact turns the it into pleasure as well).

When you truly see with opened eyes the amazing power of growing your money, it will give you a little kick of adrenaline every time you save a small amount and put it towards your financial future. Whether it's a savings account, investing account, or debt repayment, each tiny amount of gain delivers a little jolt of happiness and excitement when you can truly see it as being one step closer to your financial independence. There is nothing like it!

As an example, I used to resent being told I can't do something - no matter what it was - so the concept of saving or budgeting made me very uncomfortable and resentful. I felt like I was killing my dreams, like I wasn't good enough to warrant fantastic things and lots of money, and like I was settling for a life of poverty and frugality. All of this made me rebel, and spend every cent I earned (which was quite a bit...oh, the pain I feel now at all that lost money) like it was water. I'd be damned if someone was going to tell me I couldn't spend my own money!

The Turning Point

One evening, I was driving home and thought to myself that I wanted to have a cigarette (I have since quit for many years), and right away I heard the little voice in my mind giving me grief, ie. 'No, you shouldn't, you should really quit...smoking is really bad for you, and what kind of example are you setting for your daughter?'...etc., etc. I reacted with such rebelliousness that it hit me - my reaction was to want to smoke more! I resented being told what to do so much, even by myself, that I had the urge to go smoke a cigarette as soon as possible and shout 'so there!'. The incredible insight hit me that I didn't even really want to smoke, and that much of the dynamic was created by my resentment of being told I couldn't. I quit smoking right then and there. All my real reasons for not smoking that had been pushed aside by my stubbornness came to the fore, and I remember crying at how foolish and childish I had been acting.

Being in the personal development field, it didn't take me long to ask myself where else in my life I was exhibiting this behavior. Sure enough, the subject of money jumped out loud and clear. The pattern was very similar; every time I had a choice to make about whether I should splurge and spend some money, if I told myself I 'shouldn't', then I instantly felt resentful and went ahead and bought the item in order to make myself feel better - to feel worthy of the item. How we sabotage ourselves when we don't realize what we are doing!

In the Rules of Wealth, Richard Templar makes a great and simple analogy with these wise words:

"My observation is that wealthy people get the idea of compound interest and
the rest of us don't.

"If you spend all you get, then this Rule (Understand that money begets money) will never work for you; it'll never get your money working for you. You have to set asdie money for breeding purposes. If you ran a rabbit farm and killed and ate all your rabbits, you wouldn't have any left to keep going. Forget the rabbit farm - you're going to start a money farm. Your money will breed. You can then reinvest some and spend some - but you can't spend it all or you'll have no more rabbits."

While you are building your net worth and creating financial freedom for yourself, try switching your definitions of reward and deny. You are rewarding yourself every time you KEEP your money, every time you make a choice not to buy something and instead to save or invest that money. You REWARD yourself by keeping your money and DENY yourself by giving it away in little bits.

When you have finally created the financial conditions that allow you to freely purchase things you want, you may find that you spend less freely. This doesn't mean you will suffer without; it means that you will have learned the ultimate lesson about money, which is to KEEP it; to cherish it and put it to work for you. Every penny you spend is one less in your pocket, and one less that works for you. Personally, I fervently believe in increasing one's means, rather than learning or choosing to live frugally within one's means. The philosophies are quite different, mine being based on abundance and possibility rather than concepts of lack and limited resources. Think in terms of finding and creating more ways of making money, and begin building your dreams, dollar by dollar. Anyone can do this. YOU can do it!

Credit Does NOT Equal Cash

noreply@blogger.com (High_Life) — Sun, 19 Aug 2007 18:21:00 +0000

Many people confuse credit offered to them by a bank or other lending institution with CASH. 'Woohoo!' they think...'extra money to spend!'

Because credit can feel like it provides breathing room, it is easy to switch unnoticed to thinking it's 'spending room'.

"For many people credit cards aren't real money, at least until the bill arrives," says financial columnist Michelle Singletary in her book Spend Well, Live Rich. She continues, "People think of credit cards as an extension of their income." [This is a good book to help you re-consider your spending patterns. I find the content quite lack-based, however there are many important lessons and eye-openers that make it a very worthwhile read.]

Credit and cash are NOT the same as far as their effect on your wealth, and in fact can be considered opposites. Credit involves more debt, and cash is something that if handled wisely can make you wealthy. Paying for a purchase with cash is the opposite of paying for it with credit. You are essentially agreeing to put not only the purchase amount into someone else's pocket, but all the interest you will pay as well.

I myself used to feel like an extra $2,000 credit was just like cash, and until I understood and changed this dangerous perception, it ruled my financial life and kept me in a difficult situation.

Many times what allows us to believe our purchases are not really affecting our financial bottom line is the fact that it's little numbers: a meal here, a manicure there...how much can it really hurt? The flip side of this coin is how hard it is to hear the answer to that question. We act like ostriches and stick our heads in the sand. We don't WANT to know; it's easier and less painful that way. Somewhere inside we know that we are acting like fools, and it's easier not to face that.
Please know that the day you choose to face your spending habits will be a turning point in your life. This is a GOOD thing. Taking control of your finances is the most empowering, exciting and rewarding activity imaginable. The emotional and financial gains you will enjoy are well worth the sting of humiliation you may feel when looking your choices straight on.

For a little test, and whenever you need a reminder, try the following when you are faced with a buying decision, big or small:

Check out the calculators at USATODAY.com and play around. Under the 'saving' list try 'What's it worth to reduce my spending?' to really get an idea what you could do with your money. It can be very inspiring to see how much that little regular purchase could be worth to your financial future if you allocated your money differently.

Do a quick mental calculation to determine how many hours of your labor went into creating this much money. For example, if after taxes you pull in $10 per hour and you want to buy a great $100 top on sale for $40 - what a deal! - change your perspective by asking yourself 'is this really worth 4 hours of my working time?' It's no deal. It's $40 that could otherwise be building on itself, in your favor instead of someone else's.

For purchases you are considering the use of credit for, ask yourself if you would go into your local bank or credit union and apply for a loan. This tip is courtesy of Michelle Singletary (mentioned above), and it's a brilliantly simple way of getting perspective. Would you really look your loan officer in the face and say 'Well, I really need the $150 for this AWESOME pair of Nike shoes and of course I need socks to go with them...'? Didn't think so.

Remember, credit is NOT your money. It's someone else's money, and you pay dearly for the use of it - sometimes many, many times the original purchase price. Start keeping your money in your pocket, where it belongs, and leave others' money in their pockets. Anyone can do this. YOU can do it.

Your Relationship with Money

noreply@blogger.com (High_Life) — Thu, 16 Aug 2007 01:35:00 +0000

Have you ever stopped to consider your relationship with money? Now that you are considering it, how would you describe it?

Money tends to be tied closely to our emotions, but that is only because we have allowed it to become so. As we talked about yesterday, money itself is of no value except that which we give it, and in fact, much of the time it is simply represented by numbers that flash across our computer screen as we bank or purchase online.

Part of the yesterday's post covered the idea of separating yourself emotionally from money in order to look at things a little more clearly. What is interesting and helpful is to look at this as a relationship, and explore and acknowledge what you are bringing to that relationship. For example, are you reactionary? Do you feel strong and confident? Are you dependent and helpless?

Fellow blogger Lori from Illuminated Minds helps us see this in a recent brilliant post, by first pointing out some ideas about relationships, and then acknowledging her discovery that the same issues applied to her relationship with money. You can read her entry by clicking HERE.

I have heard countless stories from women who, having invested the time to explore and improve their relationship with money, have utterly transformed their financial lives (and their self-esteem in the process). Anyone can do this. YOU can do it.

Money and Your Self-Image

noreply@blogger.com (High_Life) — Thu, 16 Aug 2007 00:09:00 +0000

Is there a link between your self-image and money? You bet there is.

For women especially, money is often tied to self-esteem issues such as worthiness, perception of capability and hope for the future.

The first step out of this mess is to separate yourself from money, which in itself is inert. While we all know this (money is just paper and metal, right?), the understanding does not easily lead to the ability to separate our psyche from the issue of money. We think of the topic as volatile, explosive, painful, sometimes humiliating, or frightening. Many of us deal with the discomfort by avoiding the subject altogether.

NOTE: Avoidance does not make financial issues disappear.

The truth is it is our beliefs about ourselves, our lives and our decisions that cause all these feelings, not the money itself. Like trading animal pelts for a canoe, money is simply an agreed-upon medium of exchange, and has no inherent meaning or value, except that which we give it.

More people have suffered the consequences of avoiding money issues than can be counted. The ramifications can be devastating and long-lasting and complex. Even if you must take baby steps to look at your money situation, take them you must, and I will be here with you every step of the way.

As a start, try reading some enlightening and educational 'starter' material. Following is a short list of intelligent books written by women for women. Pick up used or new copies by clicking the link, or find them at your local library:

Rich Woman by millionaire real estate investor Kim Kiyosaki
What's Your Net Worth? by Women's Financial Network founder Jennifer Openshaw
Money Can Buy Happiness by MSN Money columnist MP Dunleavey

It is not necessary to take any action when you first begin to learn about finances. The more you learn, the more comfortable you will get, and I promise you this: there will come a day when you will know exactly what to do, and you will feel comfortable with your decisions. Anyone can do this. YOU can do it.