Money Management for Women

A Voice in the Wall Street Wilderness

2011-08-13T04:46:00.000-07:00

Will the roller coaster ride of the stock market end? This is crazy, really now. I read an article by Mark Cuban (yeah, I happen to think he's cool in a strange way) predicting the current plunge. See http://www.thepostgame.com/blog/daily-take/201108/did-mark-cuban-predict-market-crash I don't think he's far off. As a matter of fact, there are a number of people out there with their own takes on the state of the market that combined, show a great picture of an unhealthy US economy.

We should all be disturbed, better yet furious. You don't have to be a finance guru to feel the pinch in the job market, on the gas line, or shopping at The Loft. America is being ruined by unadulterated greed and zero moral conscience. I am waiting for the day when values, ethics and patriotism return and we start speaking out again. I don't mean the right-wing kind of rant. I mean standing up and demanding the appropriate treatment from anyone holding any kind of power that impacts our lives. If we have you in power, deal with us on our terms. This includes our politicians, our governing bodies, our manufacturers and retailers,etc. Enough of being led like sheep to the slaughter.

Don't think this is too far out a concept. It was not too far back when housewives boycotted stores and companies to protest for selling unhealthy or expensive products; when students took to the streets to protest wars, and citizens were regularly in touch with elected officials to do right by them.

You've Let Me Down Netflix

2011-07-16T05:15:00.000-07:00

I was always so proud that I don't watch "regular" tv. I save a considerable amount of money annually compared to those I know who have cable with all the bells and whistles. I prefer to limit what I watch to shows I really enjoy, hence I am a Netflix subscriber.

Now Netflix has gone and nearly doubled their monthly rate. What's a girl to do? It is still a bargain over cable, but still, the idea that they are so driven by greed irks me. So many people in this poor economy left cable to go to Netflix. Also, Netflix picked up the sinking Blockbuster customers. They did so well over this year so far, there is just no way they should have raised their rates.

Needless to say, I'm disappointed, but for now my plan of action is to stick with Hulu, which is free for now and I'll probably keep a sharp I peeled for a Netflix replacement. I plan to go down fighting.

Check out the MSN article. http://technolog.msnbc.msn.com/_news/2011/07/13/7074704-outrage-over-netflix-rate-hike-continues?gt1=43001

Driving in Reverse

2011-07-11T04:31:00.000-07:00

I really wanted to name this entry "Back Asswards" (if there is such a word) then changed my mind on that one. But really, that is how my savings plan was going. Now I want to set it right.

I save and do so automatically, but saving in a backward fashion - hence the title. It is only now that I figured out that I should have started with a target amount that I set for an annual amount to save then work backward from that point. Duh!

In order for me to build a cushion of a hypothetical amount of $10,000 in one year, I need to set up an automatic deposit of $833.33 per month into my savings account or $416.66 bi-weekly paying myself first out of the bi-weekly paycheck. Instead I selected a loose amount with no goal in mind and ultimately set the bar too low for my automatic savings.

Once I set my course and made my deposit, I would then pay my bills and make any necessary adjustments to my savings according to this method. This would allow me to save the maximum amount possible while paying my regular bills on time.

Another suggestion that I read is to set up three accounts. One for regular bills, one to save for emergencies or big ticket items and the final account would be for more discretionary, non-ssentials.

Now I go back to the drawing board to make things right.

Times Are Changing

2011-07-06T04:58:00.000-07:00

It has been some time since I wrote. No doubt the financial landscape has changed. I know my life has. I feel some of the things I blogged about when I started were relevant, but not to such a great extent. I don't want to write about how to become rich when readers may have lost jobs or homes, so I would like to adjust my blog to the times.

I am also working on a new blog dealing with healthy workplaces and on-the-job bullying. There are so many cultural shifts happening under our feet that it seems like information and services are barely able to keep up. I will post the link when it's ready.

I hope to recapture some of my old readers and gain some new ones. To those of you who have been here before, thanks for checking in. To new readers - Welcome.

Sociology 101

2010-08-01T16:46:00.000-07:00

An old friend sent me this cartoon and I’d like to pass it along. To set the scene for you, think back to your college days of sitting in Sociology 101 and recall words like capitalism, labor, means of production. My friend’s sense of humor can be a bit skewed at times but I was not prepared for the complexity of this cartoon, so you may not find it “ha-ha” funny, but in light of our current economic conditions, it provides food for thought:
http://www.youtube.com/watch?v=qOP2V_np2c0&feature=player_embedded

The New Job Market

2010-07-31T12:39:00.000-07:00

Jobs, jobs, jobs, - where are they? Rare is the New Yorker who will readily uproot from the fast pace and bright lights of the City to head out to the Rocky Mountain state of Wyoming or even North Dakota for his or her pick of positions. No that takes a special kind of adventurer. But those states and a few others in that geographic vicinity currently have the lowest rates of unemployment.

There are jobs in the major cities, and tackling job hunting is almost its own part-time job. Eventually, if you keep at it long enough, then by shear odds you should land a position, not necessarily in the company of your dreams, but a job nevertheless. There is one key that is important to use now more than at any other time due to the sluggish job market; networking.

The world of job hunting has changed significantly over the past 20 years. Employment has been bombarded by crises, such as the catastrophe at the World Trade Center, financial debacles, such as the fall of Enron and international trends, such as outsourcing. Finding a way to navigate the changing terrain of job hunting needs more strategic tactics:

The old standard resume just won’t do. Resumes and cover letters must hone in on the specific needs of the job for which you are applying. Get input from others as you update your resume and consider hiring someone to re-do your resume to get the attention of the hiring manager.

I am an advocate of the Knock Em Dead series of books by Martin Yate. His book on resume writing helps nail down what you want to effectively convey to the reader. Also check out the website www.knockemdead.com.

Follow the etiquette: Know when to follow up; send out the thank you cards or emails after an interview. Stay on the radar as long as possible.

Dress appropriately: It is endlessly amazing what some people will wear to an interview and it is even more striking in the non-profit world. No, flip-flops are not considered appropriate for an interview – think power suit. Make a professional statement. It always goes over well.

Networking: Let all of your personal and professional contacts know you are looking. It goes without saying that you want to maintain discretion in your current workplace until you get firm job offer, so carefully create a list of everyone who should know you looking, then send out emails or call them to give more specifics of your search. Word of mouth and possible recommendations can give you the edge to getting the position you want.

If you are seeking a new position, try some new strategies. It may take a little more effort but overall should shorten the time it takes for you to reach your desired goal.

A Sense of Impermanence

2010-07-30T06:27:00.000-07:00

I caught this reference on Brazen Careerist by Chris and thought I would pass it along.
Nothing lasts forever, but when we accept a new permanent full-time job, what does that mean when we first take a seat at our desks? How are we looking at the job and how does the all powerful employer view us?

Check out the post inspired by JT O'Donnell

http://employmentworld-chris.blogspot.com/2010/07/every-job-is-temporary-job.html

Smoking, Gambling, Drinking and Saving Money

2010-07-19T18:56:00.001-07:00

Some things become habit. I can attest to the many attempts it took me to quit smoking. (Sorry to disappoint but I never stumbled into the gambling and drinking vices.) It was not just about breaking the physical addiction of nicotine, but the lifestyle changes that compelled me to reach for a cigarette further enabled my habit. Many years after I quit, I have gotten up to get a non-existent cigarette, not from desire, but simply from the old routine that I had established over a course of many years.

Money management, how we spend and save is so incredibly similar. I have been reading some old “classic” books on handling money and becoming rich. You have heard me say before that most of the same principles apply if we want to get out of debt or if we want to become rich. Many of the steps outlined in these books have to become ingrained and habitual for you to reap the financial results.

It is about mind set, it is about routine, it is about regularly scheduled habits of when and where we deposit money or pay down a debt. Hit and miss actions will doom you to stay in a financial rut. Even lucking into easy cash will be a very temporary gain since new habits of prosperity have not been established.

I have saved money that I was able to divert to pay off bills by breaking habits; like my cable bill, for instance. When I got rid of my cable tv connection, I knew I was wasting money paying for something I seldom utilized. Yet once there were no more channels to aimlessly surf, I felt lost. To be honest, I did go through some withdrawal, especially losing the background noise to which I had become accustomed. But in no time at all I was able to re-build a new passion for books, drown myself in music I had sitting in their cd cases and explore new shows via the internet. Though I may be out of step with some of the shows I hear people talking about, I feel my leisure time viewing has been expanded way beyond what tv could offer, while saving me close to $100 per month.

The tv habit was a habit that had to be broken and I’ve learned to look at how and what I spend my money on, evaluating if it supports my financial goals.

Any bad habits you want to ditch?

List Hunting

2010-07-17T06:52:00.000-07:00

I just love lists and today I hit the jackpot. MSN has a really good selection of useful lists out and I'm sure something will catch your eye. I would suggest trying

http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/weston-the-100-most-useful-web-sites.aspx?page=1

Listing 100 sites that cover interests from money saving tips and tools to free career support, author and regular contributor to MSN Liz Pulliam offers readers an amazingly extensive list.

To find other fun lists on MSN, go to

http://articles.moneycentral.msn.com/SavingandDebt/FindDealsOnline/FindDealsOnlinedyn.aspx?cp-documentid=24855159>1=33010

Be sure to bookmark those that you would like to use regularly. In my excitement of going through new lists, I often forget to bookmark them and find myself at a loss months later when trying to recall a list to which I would like to return.

Welcome to the world of ListMania!

Exploring Money Theories - What Works For You

2010-07-11T06:38:00.000-07:00

Spending less, saving more has been the mantra of many books on better money management. One of the more recent books I read, I Will Teach You To Be Rich by Ramit Sethi (see previous post) poses a different approach to a the younger reader; those beginning their careers. He espouses not giving up your passions while wisely managing your earnings, savings and investing. If his method gets you to the financial place you want to be, then I applaud it.

I do promote, however, curbing the impulsive, wasteful spending that many Americans have doggedly embraced. Let’s look at music. You will not hear me going around saying that “music is my life”, however I do listen on a regular basis and I maintain a varied collection in my iPod and on my computer. Yet I most regularly listen to either Pandora* or Yahoo music. Why? Because I can sample the genres of music I prefer, especially the newer releases, for free. This, in turn prevents me from spending frivolously on a cd or music download.

I have visited homes of those who considered themselves to be masters of music and have the impressive collection of cds to prove it. Not to say I have ever heard music in these homes, but the collection for the average person will go the way of vhs tape collections (ah, remember those?)

If you are a collector, by all means collect, but put thought behind your acquisitions and think of the usage. Maybe that is too simple a view for a true collector but it is the more financially sound approach for the average listener.

*Pandora has limits on the free listening time.

“The Difference Between Being Rich and Being Sexy”

2010-04-04T08:11:00.000-07:00

Like my title? I’m actually quoting from a copy of a book I picked up entitled I Will Teach You To Be Rich by Ramit Sethi. Remember what I have written about before: Many books proposing to teach you how to become rich have similar information as those that teach sound money management principles. This is a good book that falls into that category but with a different twist.

Before going on about the book, three key components in getting a good handle on your money are; direction (what you want to accomplish and over what period of time); a plan (how you will reach you destination has to be plotted out); and consistency (you can call it dedication, commitment, or habit, whatever is right for you). These three conditions will get you out of debt or will be the basis to millions. There are no magic tricks to money management.

Ramit’s book is ideal for the person who is finally ready to start taking control of her money. I found it was geared toward the young 20-something reader, but I also know that some of the steps that may seem basic are not given much thought by many women. Good examples are shopping around for the best interest rates on regular savings accounts, and looking for no/low fee checking accounts. Why pay fees and lose out on interest that in the grand scheme translate into real dollars and cents that can assist in funding a down payment for a home or a retirement plan?

What is different about his book is that the author does not beat you over the head with how to budget. He does tell you how to fund your needs while funding your passion through controlled spending. This is a great idea for those who are entering the work world and need to learn as early on and as painlessly as possible how to live a financially secure life while enjoying the things that mean most to them.

One piece of wisdom Mr. Sethi shares is how to avoid economic sensory overload. There is so much overwhelming information out there that most of us tend to freeze and do nothing but spend our income and pay some bills. He provides us with sound information on how to increase our knowledge of money management while avoiding encounters with talking heads of the finance industry.

Ramit’s book humorously covers all the fundamental steps you need to get you off to a good financial start and I would highly recommend this book. Read it carefully and start following the steps if you have not already begun to take control of your money.

As Aesop said “Slow and Steady Wins the Race”

2010-02-27T07:52:00.000-08:00

I’m pretty sure that most of my readers are like me; looking for ways to develop healthy financial habits leading to secure futures. But as we know, not all suggestions stick. I do believe, with many trials and errors, that the right combination of money management habits pave the path to the financial goals we envision for ourselves. Many of these start with baby steps.

I came across this Yahoo article entitled “10 Ways to Trick Yourself Into Saving”. The article provides easy practical steps to boost your savings. It is not a fast fix to financial dilemmas, but puts you on the right track to financial stability. Some of them I have been doing for years with the desired results, such as saving spare change, setting up automatic savings accounts and using my bank’s ATM on a weekly basis instead of making multiple trips to random ATM machines.

Please check out the article:

http://customsites.yahoo.com/financiallyfit/finance/article-108899-4254-1-10-ways-to-trick-yourself-into-saving?ywaad=ad0035

I welcome your feedback.

Cowards Beward!

2009-12-30T08:31:00.000-08:00

If you are scaredy cat like me when it comes to the stock market, David Landis wrote a good article entitled How to Protect Your Profits in the January 2010 edition of Kiplinger’s – Personal Finance. In the magazine, Landis listed 7 things to do to help ease you through these financial times while hanging on to most of your hard earned dollars, even allowing you to earn more toward your retirement goals.

Of the 7 recommendations, 2 stood out as simple for anyone who is both cautious and not an expert investor. The first is to raise your cash holdings. This can be done in either of two ways; by converting a percentage of our stock investments (he tossed out 30%) to cash and placing this money in a secure account, such as a money market or Treasury bills. The second possibility is to redirect some of the money going into your 401K to the more secure money market accounts for the time the market is in flux.

The second recommendation, which really should be done annually, is to rebalance your portfolio. You can sell off stocks that have done well and put these assets into stocks that have not done so well during the economic downturn. This allows you to follow the investment concept of selling high and buying low so you can take advantage of the market downturn to acquire stocks when they are “on sale”.

I was very excited when I read this article because it supports how I feel the average woman may want to look at the market. We tend to see the market like investing our salary in the nearest poker game. No one wants to see their hard earned cash wiped out in a bad market and not many of us are great at the fine points of investing. But this is a common sense approach supported by looking at trends of investing over an estimated 50 year period. The stock market does follow a natural progression of ebbs and flows. Do plant your retirement your money where it can grow over the years, but for those bad seasons, protect as much as you can in preparation for the next good season. This will mean that you will have to look at your investments more frequently than you may like, but it will also mean that you can work your stocks to your retirement advantage.

Short End of the Shopping Cart

2009-12-20T08:41:00.000-08:00

In "Why It Costs More To Be A Woman" MP Dunleavy of MSN Money points out a fact worth mentioning here. Women pay more for the same products than men. Our “made for a woman” products offer pink-hued packaging and perhaps a flowery scent, and this Ladies, justifies the increased dollars we are spending. Need I remind you that those dollars add up over time?

Let’s backtrack. Dunleavy was not comparing apples to oranges. She compared products by the same manufacturers. She pointed out items like shaving cream and eye creams, even referring to the Consumer Reports article that compared six articles “that come in his-and-hers versions (or a neutral edition and a feminine one): shaving cream, antiperspirant, pain reliever, eye cream, body wash and razors. The magazine found that products aimed specifically at women can cost more than 50% extra.”

“No Fair!” I thought as I read the article. But then I had to add, “So what else is new?” Face it, profit is the name of the business game. If we, the consumer, willingly hand over our money, that’s great for the manufacturer and merchant. That is the object of the marketing strategy; to target the primary household consumer and play to that shopper.

In these challenging financial times, people in general have started shopping in discount stores, seeking out sales as never before. So, include in your bargain hunting strategy comparing products by the same companies differentiated by the male and female version. If packaging makes a big difference, when you get home, transfer your purchase to a preferred container you may have around.
After all, doesn't it come down to the quality of the product?

http://articles.moneycentral.msn.com/SavingandDebt/ConsumerActionGuide/dunleavey-why-it-costs-more-to-be-a-woman.aspx

http://www.consumerreports.org/cro/magazine-archive/2010/january/shopping/same-products-different-prices/overview/same-products-different-prices-ov.htm

Books on a Budget

2009-12-13T05:54:00.000-08:00

I just wanted to pass along a tip on a website I regularly use. It's called PaperBackSwap.com. Paperback Swap is a way to feed your reading frenzy without incurring the expense of purchasing new books. It is a highly recommended site that does as implied; it allows you to swap books with other readers on any genre.

Of course the best way to save money on books is to go to the library, but I like to keep some of my books since I regularly return to some of my old treasures for reference. But the good thing about Paperback is that once you do finish a book, you can relist it on the site for availability to other members.

The cost to you? The initial posting of six books that you no longer want. That starts you off with two points with which you can request two books. After that you only pay the cost of mailing a book requested by a member at media mail book rate. Ultimately the typical cost to mail each book is less than $2.50. Is that a deal or what?

So when you want to sample some of the financial books out there or any other books of interest, check out www.paperbackswap.com.

How to Set Financial Goals

2009-12-06T10:40:00.000-08:00

I was sorting through old emails this weekend and found some gems, one of which I would like to pass along. It comes from an alternative medicine cite of which I am a fan, www.mercola.com. Though the posted article does not relate to finances directly, it provides tools to help you get on track with controlling your money.

The link, http://articles.mercola.com/sites/articles/archive/2003/03/26/dreams-reality1.aspx is about goal setting. As I had mentioned in prior blogs, so much of how we chose to handle our money is based on how we perceive our finances. Our mental attitude actually drives what we do with our money and dictates our success at managing our income and investments.

Dr. Mercola is a staunch advocate of the mind-body connection to maintain optimum health, so interspersed with his tips and opinions on health and the medical community, he will liberally provide suggestions for attaining life goals, which for most of us include attaining financial success along with overcoming stress and other health concerns.

This article on goal setting encourages you to step beyond merely listing what you would like to achieve and start examining each goal from different perspectives. His process actually gives the goal(s) momentum for follow through. Try it out and see how it affects the improvement of your finances

Lesson from the Beleaguered Financial Trenches

2009-11-29T16:28:00.000-08:00

I’ve always found inspiration through stories of other women who shared my plight, of struggling with money while trying to raise a family. Once I finally had the time to research and write, I wanted to give back some of the financial lessons I learned over the years. That’s the “why” behind starting this blog on women’s finances.

My timing for starting my blog could go either way. The savings and investing principles all seemed sound enough at the time, but as I watched the financial bottoms drop from beneath the feet of the American, and ultimately global economy, I ended up like the proverbial deer caught in the headlights. I didn’t know what to write. But now, after gathering my wits about me, what have I learned though the dust has yet to settle around us?

Well my purview doesn’t come from being a financial maven. I found myself in a place not too long ago where, had I taken control of my finances with focus and discipline, I would be a wealthy woman. But that’s not just my story. We women do not rally our natural organizing skills around money. We also continue to hand over control of our money to the men in our lives; first fathers then husbands and maybe even to our not too savvy accountants. We can’t stop seeing our world of money as a man’s domain. So at various points we struggle to weather inevitable financial storms because we are so ill-prepared instead of buckling down knowing we have made the best possible decisions to get us through.

So what has happened to us over the last couple years (since December 2007 to be precise) when the economy went topsy turvy, going against all the popular advice and directives out there? And what did it mean for us then and what do we do now?
- Mindset had the biggest influences on personal and family finances.
- Those who thought their financial ride upward would never end received a wake up call.
- Those who generally were not aggressive investors did better than those who bet the bank on aggressive stocks.
- Those who lived above their means were shocked into reality when they lost jobs, investments and possibly their homes.
- Those who lived moderately and within their means did well and were not so heavily impacted by the downturns.
- Those that made sure they had a financial cushion were prepared for major changes.

What about advice from the so-called experts? The push to aggressively invest seemed to have remained constant with no word that the market is not always steady and predictable. I still stand by my belief that this was an error. Nothing lasts forever is a saying that will last.

The lessons from this time in our financial history are to stay focused on your goals, revisit your financial plan at least quarterly. Make adjustments as needed and be sure to have a reasonable percentage of your money saved in an insured account even if it means you will be receiving interest at a lower rate. Moderation and balance serve those to withstand financial downturns when they came.

Does the Old Paradigm Still Hold True?

2009-07-26T06:25:00.000-07:00

Good question. I went to rollover my substantially diminished 401k held by my former employer to my IRA account. The financial advisor on the rollover did his best to try to talk me out of putting my pittance in a secured minimal interest, but guaranteed account for the short term. He wanted me to take advantage of the weak market and invest aggressively since I "have time to recover before retirement", he enthusiastically said. In my estimation, all of his arguments did not apply for where we are now.

He was going by the old script as a lot of those who work in the field are still doing. Wake up and look around! Lives are changing along with the financial times in which we are living. Gen X’ers and more so Gen Y’ers are waking up to changing financial landscapes that by and large were negatively affected by corporate greed that slammed the environment. They will be powering their investing in a different direction. We need new models and new strategies.

This blog, by and large, was written for women. It was meant to provide clear information to not only help readers save and invest money to build solid financial futures, but to create a present day foundation. I still believe that with basic tools, women can still rely on their unique strategies and common sense insights with a smidgen of intuition, to manage their finances despite the economic downturn. We still continue to juggle, stretch, and make a dollar cry while managing work and family, so we can do the same with our finances.

My belief? A much less aggressive investment strategy would have saved investors untold retirement dollars. Men, the great keepers of the financial institutions, lost just as much as women in this market. They were very aggressive and did not always get in “on the ground floors when the prices are at rock bottom” as my advisor told me. Neither did the wise investors jump ship before the market started its free fall. Hey, even Warren Buffet lost $11 billion of $57 billion this year.

What does this say for us? Slow, steady, and reasonable. We will make progress, maybe not with the raw animal aggression that financial advisors still employed by investing institutions would like to see, but by taking practical steps to reaching our financial goals.

What's the Buzz on Investing?

2008-09-23T08:03:00.000-07:00

The experts are still saying that it’s a good time to shop for the sales. Stock in companies that appear relatively safe are a good deal. Stay away from the shaky financial sectors. So even though the average American family is cutting back on expenses, there are still necessities needed, so the food and basic household products which fall under the category of consumer staples are worth a closer look right now.

Do not rush to pull out your money from banks. Your money is insured by the federal government. But on the flip side you may want to spread your money across a couple banks if you have over $100K in any one bank.

You should not have the bulk of your investment money in the stock market if you are around 55 years of age. As you near retirement, your money should be eased towards more secure investments, though these will net you a lower rate of return during retirement. At this time, you may want to start consulting a certified personal financial planner to gain some solid advice.

Finally, as I mentioned before, many baby boomers are considering delaying retirement. If you fall into that category and that is an option for you, consider it. This would allow a couple years for the state of current financial downturns to stabilize and, as historically has been the trend, to start a gradual rise back up, reducing some of the risk to your retirement portfolio.

Check out this cool investment tool:
http://www.smartmoney.com/map-of-the-market/
Smart Money's Map of the Market allows you to easily see accouding to the color grid how sectors and specific companies are doing.

What Goes Around Comes Around

2008-08-24T06:00:00.000-07:00

MSN posted a Kiplinger’s feature about YAWNs (yes another acronym to remember) which stands for Young and Wealthy but Normal. MSN’s post was entitled Modest Millionaires on a Budget that went on to describe a new wave of successful young adults, ranging from their 20’s to 40’s who are conscientiously changing their spending habits in light of their perspective of their place in the world.

These young adults are embracing this lifestyle choice through a re-defining of values and philosophy. Basically as you change your worldview and sense of responsibility in the world, so goes your method of handling your money.

The three values touted by the YAWNs are:

1. Live below your means (sound familiar?),
2. Material possessions do not buy happiness. Social/family relationships garner satisfaction on a deeper level, and
3. Give back to the Earth and to your community through active involvement in worthy philanthropic causes.

You have seen these items in one way or another in many of the books on financial management as well as this blog. Amazing that in such short a time span we are starting to see noteable changes in the perception of financial worth in a segment of the population. Of importance is the shift from accumulating material possessions as representative of self-worth to a value based money management system. The value base is the construct of identiftying first and foremost what is important in your life then creating your finances to support what you have identified.

We may be starting to see a switch from 16 hour workdays in support of the multiple cars and expensive vacations in favor of more efficient 8 hour workdays to allow time for friends and family. After seeing the recent frenzy to stay afloat with mortgage payments, fuel costs and now food expenses, it is timely and even, daresay, refreshing to see those who are making wiser life choices.

How ironic that this notion is a throwback to the part of an earlier generation, just 30 or 40 years ago, that espoused care of the planet, love of others and living with basics.

http://www.kiplinger.com/columns/starting/archive/2008/st0618.htm

http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/ModestMillionairesOnABudget.aspx

Quality Time

2008-08-16T16:18:00.000-07:00

It seems as if most of the financial news I have been coming across has been on the tightening of the collective American belt. So as the ongoing money concerns of the Country remains on the tip of everyone’s tongues, there have been numerous personal interest stories on “how to cope” during these financially trying times. This past week CBS afternoon news presented a report along this vein focusing on suggested coping methods for families facing financial hardships. The inclusion of the children in family discussions on money matters was one of the key coping methods featured.

From my perspective, the generation of baby boomers took the stance that they would provide the financial security to their children without making them party to the economic workings of the household. Parents did believe they were doing the best for their children by, in many cases, providing more than they may have had in their own childhoods but also without many of the obligations that were placed on them. This has resulted in children, not only having limited economic knowledge beyond spending, but being unaware of the hardships that may be happening in their own homes.

This report encouraged parents to make children part of the family money discussions. The lesson here is crucial, not only during tough times but on an ongoing basis. Children learn how to be “stewards” of their own money from us, the parents. Their financial education starts in the home and so they should be aware of and made party to exchanges and decisions on the economic changes within the household.

Creating casual family time to discuss the reasons for cutting back certain luxury items due to rising costs of gas, for instance, goes a long way to allay insecurities a child may feel if he or she detects a shift in the workings of the household. And we know that children quickly pick up on household changes.

Have conversations, welcome input from your children and explain why certain changes will be taking place. Children can cope with certain situations better than we give them credit for, and this quality time invested in your children now will go a long way to ease some of the tensions during this difficult time.

Who’s the Boss?

2008-08-03T05:49:00.000-07:00

Though I briefly touched on this topic before, now is a good time to take a closer look at new business start-ups. There are a few reasons to consider this a gateway to opportunity if you can see yourself running your own business, even on small scale:

1. The supplemental income will ease the pinch you may be feeling given the current status of the economy as well as lighten your tax burden.

2. A small business can help minorities who hold low level positions in the workplace remove limitations regarding careers and finances through business ownership.

3. These businesses also provide women who are not moving up the corporate ladder in keeping with their educations and experience the chance to shape their own career destinies.

I am aware that during times of economic downturns and the related sequence of layoffs, many people turn out to be quite resourceful. At those times you see individuals brave the entrepreneurial gauntlet of starting their businesses. Further, I found it to ease some of the tax burden. A good tax accountant with small business experience can help you clearly define business-related deductions in ways you may not have been aware.

The idea of minorities (including women and not just people of color) as business owners is nothing new. The SBA even showed that overall loans to minorities increased by 7% in 2007. The combination of the economy and the failure of women to be promoted and/or receive pay equal to their male counterparts has been and should continue to be the impetus for many women to strike out on their own. And so now we are seeing another segment of the workforce jumping over to that path; women who do not make it to the upper levels of management taking their skills and education to create a profitable niche for themselves in the self-employment arena.

Case in point is an article by Cara S. Trager in Crains’ New York Business Diversity Report for the week of June 30, 2008. Trager referred to Kysha Harris, who used her Wharton education and corporate skills to start her own business, Schop, “a food-shopping, preparing and cooking service”. As Bonnie Wong, president of Asian Women in Business was quoted as saying in the article, “A lot of times, people of color feel there is a glass ceiling and go out and become entrepreneurs because there are limited promotion opportunities in corporate America”.

I was talking to my friend Jean who expressed her amazement when she got together with a few of her old friends for lunch to do some catching up. She explained that of the four of them, she was the only one that was not actively either starting a business or taking courses towards the fulfillment of that goal. For two of the women it was a matter of the proverbial being at the right place at the right time along with a touch of serendipity.

What the entrepreneurial women had in common was the eye to jump on the opportunity that presented itself. None were dropping their day jobs and investing their life savings to get their “dream” off the ground, but were fully accepting of and working with their opportunities that would create fulfilling as well as lucrative pursuits and yes, eventually a full-time career.

Timing could not be better to consider a new business. With the status of the national economy, it is always an especially good idea to have multiple sources of income, if only to allow for building a substantial nest egg or providing extra money for rising living costs. So play around with some ideas, look at your skills and interests and maybe you could eventually start your own business. Self-employment is not for everyone, but for many, the time has come to venture out

Where Is Your Cushion?

2008-07-26T12:47:00.000-07:00

What is going on with the cost of living? From all the recent changes in the national as well as the global economy that do affect us, some of the recommendations that the finance pros were preaching have had the opportunity to become necessities in many households of late.

Rising gas and overall fuel costs; the increasing costs of food; unemployment rates coupled with a weak job market; and the real estate/mortgage lending fiasco, well the list seems to have no end. The households that have no emergency cushion in place are being hit the hardest. I think those who were unwilling to compromise what they considered to be lifestyle necessities may now be forced to reconsider their spending habits.

It is not too late to regroup and create a savings plan. Examine your spending habits closely. Eliminate luxury spending and divert those funds to an automatic saving account. Any “bonus” money that comes to you should go into that emergency savings account as well. Finally, rebuild into your spending a set amount to be used for luxury spending but in moderation, such as dinner and movies once a month instead of take-out food every night. Some people find that as their thinking and goals change, so does their frame of reference on luxury spending.

For those who are already in serious debt, there are new government –sponsored programs coming out to assist those who have run into problems with their making their mortgage payments. There are also the non-profit agencies that act as intermediaries to establish payment plans on your behalf with your creditors. These options will help you get back on your feet in a specific period of time, but it is not an instant fix. You would still need to develop new ways of looking at your spending habits to prevent you from falling back into the same patterns as before.

If you need assistance, a good starting place is the National Foundation for Credit Counseling (NFCC), an accredited non-profit organization. Their website is http://www.nfcc.org/. The NFCC provides general information on debt management including resources for help with mortgage payments. Through them you can also find certified credit counseling agencies in your area for personal assistance.

If you need financial help, it is out there for you. Take control and do not wait until you reach the point where you believe bankruptcy is your only solution. With thorough preparation, you can ride out this economic storm with some peace of mind knowing you have done all within your control to establish as much financial security as possible.

What is Rule#1?

2008-07-11T11:21:00.000-07:00

Per my last blog, here is my spin on the book Rule #1 by Phil Town. I saw Mr. Town on the TV show The Millionaire Inside on CNBC and was very curious about his method of making money since he was telling the average person how to build wealth by investing in stock. Little was I prepared for that shocker since this is the antithesis of how we are usually told to invest. His perspective clearly differed from that of his fellow panelists as well.

When flipping through the book, I must say it is somewhat intimidating seeing all those numbers passing by, sure to make a few of us readers a little uneasy with the sheer anticipation of mathematical configurations. Banish that from your mind since the premise of the book provides great direction on how and why you should be bringing other factors into your investing strategy.

According to this book, anyone who invested during the 1980s and 1990s benefited from the market surge, whether or not they were fund managers. That means anyone broadly invested would have earned some interest on their money. This brings home the point that fund managers have no magic wand to earn you high rates of interest. As a matter of fact, Town states that “From 2000 to 2003, mutual funds lost half their value. You could have lost 50% of your money without the help of a professional.”

As to risk, the security of investing in US Treasury bonds may not be so attractive when you look at the fact that it takes 18 years to yield your guaranteed 4% interest. This turns out to be of even less value since that 4% will unlikely be in line with increased cost of living or inflation over that time period. Instead, Rule #1 advises its readers/investors to examine stock of companies that will yield on average 15% interest in considerably less time. How high is the risk? If all the research homework is done properly, your chances of getting at least 15% may not be guaranteed, but is much more attainable that you would expect.

This book provided me with the all time best information I have come across in helping me to understand the finer details of analyzing the financial statements of a company. And in all honesty, I admit to being one of those women who cringe at the mere prospect of reviewing finances.

The down side to this book is that although it provides excellent models and explanations on how to figure out the companies in which you may want to invest, it is not a quick process. It will take considerable time to get down to the 15 minutes Mr. Town heralds on the cover of his book. More that halfway through the book, he does provide more reasonable timeframes to conduct the research needed to get to that point.

It is the type of approach that will take full-hearted commitment that can be mastered and should yield successful results. I also see that this could be a good foundation for investment clubs or couples who share the determination to build up their economic futures. I like the way he shows that it is not all about investing for retirement but building up the resources to live a comfortable life in the much nearer future.

There are truly some sound principles of investing and he touts the methodology of Warren Buffet and other investment giants, thereby providing generous references in support of his investment model.

Though I wouldn’t say drop everything and change your current method of investing, I do think as our economic landscape has changed so drastically over the past 30 years, it bears revisiting how we manage our investments. This book may provide the pathway to some for that change.

Stop! Don't Diversify!

2008-07-08T18:03:00.000-07:00

Since my last writing, I dabbled with buying property, had a brush with the Dark Angel of Layoffs and am exploring the economic terrain of these here United States. All in all I am having first hand encounters with the very issues I have written about in my blogs gone by. Quite an adventure, if I do say so myself!

Somehow lately I have been reading books that have challenged all my basic beliefs, both in and out of the realms of money management. Rule # 1 by Phil Town is the most recent book on investing I read which falls under that category of challenging, and which I would like to share with you.

By coincidence I read a brief article last week that supported investing in the stock of fewer selected companies while stepping away from the concept of the diversified portfolio or mutual funds as the best way to grow your money. This is the very premise of Rule #1: Diversify if you must, but to increase your money in a reasonable length of time, do your homework which then allows you to carefully select very few and specific companies in which to invest.

This idea is counter to all we amateur/novice investors have been taught over the past years. However I did find a brief article on the Yahoo website from 2005 by Robert Kiyosaki of Rich Dad, Poor Dad fame entitled “To Diversify or Not To Diversify”. Though clearly not so recent an article, Mr. Kiyosaki identifies “Active vs. passive investing. [He goes on to say] There are active and passive investors. Warren Buffett is an active investor. Most people are not. Active investors should focus. Passive investors should diversify.”

The active investor has gained the knowledge and some experience with investing and is willing to put time into researching profitable companies that will earn the highest interest per dollar. On the other hand, the passive investor is inexperienced, does not have the time or confidence to research companies and is very uncomfortable with what he/she perceives as risk.

If you have gotten to the place where you are confident in your current investing methods, would like to see your money earning more, and are not afraid of doing some basic arithmetic, maybe you should consider moving to the next level of active investor and ease out of mutual funds. But before you do, I will go a little further into Rule #1 in my next blog. So you may want to either buy the book or stick around for Part Deux of this blog.

To read Robert Kiyosaki’s article, go to

http://finance.yahoo.com/expert/article/richricher/1649

A Real Estate Story

2008-04-20T12:20:00.000-07:00

Mea culpa, I have been blog negligent for a few months. Where do I begin? Much has happened over the last months which included a relocation, a house hunt and changes in the workplace. All in all life has been full of many turns and changes.

On the financial front, I think one of the most astounding experiences I faced firsthand was looking to purchase an apartment. I saved my down payment, insured my credit score was good, found an ideal location and was moving ahead. At the last moment I changed my mind, which more so felt as if I had chickened out. What did it? I was not comfortable with the high pressure I felt from my realtor. I may not have listened to my own intuition had it not been for my attorney.

I did not really believe at the time when the financial world is still reeling from the mortgage/housing crisis that selling tactics would still be high pressure. I was wrong. So even though I expressed that I was not comfortable with being pushed into signing any contract, my realtor continued and my lawyer made note of this.

The facts were I knew how much I wanted to spend, I knew how much flexible cash I had available for the purchase, and I did end up having some hesitations about the “ideal” location.

Key to my situation was that I needed someone who had expertise in buying and selling co-ops and condos. When my realtor recommended his friend to represent me, I promptly did my research and found the right person for me. I was also securing my own mortgage. I wanted to insure that all participants in this transaction were not connected to each other.

The deal breaker was that upon the review of the contract between my attorney and me, the realtor wanted me to express mail the signed contract to him the same day. Usually the buyer would have a few days to think over the whole deal before moving forward. I did express that if the seller had so many other interested buyers who were willing to pay more that I was, then business is business and he was free to take advantage of their generous offers.

My lawyer felt that though on its surface the deal seemed adequate with no glaring concerns, the extent of the pressure by the seller and realtor was definitely questionable. Ultimately I may have ended up with more expenses than I initially anticipated and I didn't want to go that route. I believe my attorney did the right thing – looked out for my interest as the buyer.

The happy ending is that I found my dream apartment, and though it is a rental, I could not be more pleased. I also have another year to rethink what I want in a housing purchase as well as the time to move toward that goal.

Identity Theft

2008-01-16T07:42:00.000-08:00

Identity theft is becoming the fastest growing crime of our times. Not only is it an unfortunate violation of the victim but the situation then rolls into a time consuming and inconvenient process of notifying banks, credit card companies and authorities necessary to resolve the damage. Normal day to day transactions are temporarily in limbo until new accounts are set up and suspensions are released.

At any given time you should have access to all of your credit card information as well as various bank account numbers so that in the event of an actual theft (or any other emergency) you have an informational checklist that can readily be utilized. So as soon as you realize you have been the target of identity theft, immediately start the notification process to reduce or eliminate damage to your credit.

You will be contacting the credit bureaus, banks and credit card companies where you maintain accounts. You will more than likely have to file a police report as well as a report with the Federal Trade Commission.

The website Privacy Rights Clearinghouse, http://www.privacyrights.org/fs/fs17a.htm provides a comprehensive directory and explanation of the agencies and companies you should notify if you have been a victim of identity theft. Again I would suggest that just as you have emergency numbers readily available “just in case”, that you maintain a copy of this information for quick reference.

Though we do our best to prevent identity theft from ever happening to us by being vigilant about personal information, we still need to know what to do if ever this befalls us.

The Feminine Mistake Controversy

2007-12-30T08:03:00.000-08:00

Like one of those optical illusions, hindsight is a curse or blessing depending on your viewing perspective. So too was my take on the commentary of Leslie Bennetts’ book The Feminine Mistake: Are We Giving Up Too Much?

This book turned out to be quite controversial for many women. The premise is that women should think twice before leaving the workforce in order to raise children. The primary reasons are two-fold: The odds are slim to non-existent of falling back into place where she left-off when she decides to return to work and retirement contributions are severely affected by the duration of time away from work. Within the mix is the fact that husbands cannot be seen as viable sources of income over the long haul due to any possibility of divorce or any other of life’s misfortunes. When it comes to the concept of women opting out of the workforce to raise children, Ms. Bennetts believes this “model is obsolete” as stated in AARP of October, 2007.

As to my opinion of parenting from both working and non-working perspectives, I believe much can be said for women who do stay home and the lives of those children who are so fortunate. I also know the whole level of stress with which women constantly struggle resulting from having to leave a very young or sick child with a childcare provider. How many mothers wrestle with the anxiety and guilt affiliated with work-related choices and how it they may affect their families? Can or should these deep-seated emotions be suppressed?

30% of single women depend solely on social security as income during retirement. Taken into account that a percentage of these women are divorced or widowed supports the premise of the book. So looking at the alternative of staying on the job with curtailed stints of time away from the job for childbirth/childcare reasons would significantly reduce the percentage of social security dependent women.

The debate is complex as well as emotional for many women. But I do believe careful planning on the financial end can allow for some damage control for those who do wish to stay home with baby. For example there is the option of bumping up retirement contributions at the workplace to help make up for the time period where mom is not working for a company.

Some women have the ability to work at home and create their own schedules. This work can fill in a gap on resume since technically mom has not actually left the workforce, simply created another income niche. Self-employment also allows for retirement contributions in the form of SEP-IRAs.

Also there is the possibility of setting up a spousal IRA, which, if the criteria are met, dad can fund an IRA for mom while during the time she stays home.

My comments are not a critique of the book but on the choices involved with leaving the workforce to stay home to raise a family and the possible impact it may have on women’s retirement.

Why Have A Will?

2007-12-16T13:55:00.000-08:00

It is a common belief that wills are only for those who are well-off and have many assets, like property, investments and other valuables. This belief should fall into the category labeled myths. Everyone should have a will, if only for the purpose of taking the decision-making responsibility out of the hands of the government and into the hands of someone of your choosing to handle your affairs after your demise.

Funny as I write this, I know that superstition prevents many people from even starting the will writing process. It’s as if by avoiding writing a will, you somehow are guaranteed eternal life. Some people also will endeavor to write a will after a dire health prognosis. This may not necessarily be the best time to start this job. There is no time like the present to start figuring out what you have and what you would like to see happen to your possessions.

Most people have heard stories about treasured family pictures just disappearing after the death of the owner or questions about the fate of a special piece of jewelry. Sometimes these very items turn into the root of family feuds that could have been avoided. So it is not necessarily about family fortunes.

What about your children? Who would care for them in the event of an accident? Also, who would oversee any money that would go to them for their care if you are not in the picture? These are the types of decisions you do not want made by any government or agency. It is not to say that something like this could not be contested/challenged, but is a way to make it known that there are certain conditions why the seemingly most obvious person may not be the best candidate to care for your children.

A will can be as basic or as expensive as you want to make it. Ideally you should have your will drawn up by a lawyer who is experienced with wills and estates. However in the interim, if you are lacking funds, you can draft a will yourself or buy a will kit from an office supply store. The important thing is dating and signing your will, then having it signed by your witnesses. You should then distribute copies of your will to those who should have this information in the event it is ever needed. Now this is not necessarily the best way to go, but it is actually better than having nothing on hand and never having communicated your wishes to others.

Keep in mind, you can always change your will or have a complete new will drawn up at any time. So don’t feel that your first will is permanent and can never be changed. That is why the date on your will is important. Usually the most current will is the one that stands and will cancel out previous wills.

As Tax Time Draws Near

2007-12-09T08:21:00.000-08:00

My cousin Joe does my taxes. (Wink Wink) Yeah, on the surface your cousin Joe is giving you a break by charging you very little or nothing to do your taxes, but good old Joe is probably also costing you a bundle.

Aside from the few papers you take to your tax preparer, what questions is he or she asking you? Is he/she providing you with advice for next year’s tax preparation? If you are being asked just the surface questions for your 1040, then you are likely to be having a superficial, bare bones return prepared.

In my previous blogs I wrote about flexible spending plans, 401k plans and IRAs. Your tax person may indeed be factoring these figures into your return, but is he informing you of the tax benefits of maxing out your retirement contributions? If you are not enrolled in any of these plans at all, he should be advising you of the tax benefits of such contributions. Additionally since he has your salary information in front of him, he may well have some idea of your other expenses, thereby being in an excellent position to suggest how you can afford these new contributions.

There are tax laws that allow deductions for job hunting, home businesses and work related expenses. You should be getting information on how you can itemize deductions and how you can comfortably make charitable contributions that also work for you.

As I have said before, the IRS should not fall in the extreme realms of monster or Santa Claus. The IRS should not be seen as your forced saving solution nor do you not want to owe huge amounts to the government. (Have you noticed that if you owe the IRS, you incur interest and penalties, but if the IRS owes you, you are lucky to get your refund in a short period of time?} As the tax payer, you want to keep most of the money you earn in your pocket.

So aside from the actual tax preparation, your preparer should provide you with advice on the wisest financial moves you can make to put you in the best possible standing with the IRS. I am not saying that your preparer should be your financial consultant but should review your annual finances from the tax perspective. With that in mind, the cheapest preparer is not necessarily the best preparer. Shop around, get references and look for professional credentials of the preparer you select. Chances are that over a two year period he/she will help you make back the money spent on the preparations and you will come out ahead.

The Environmentally and Economically Conscious Consumer

2007-12-02T10:40:00.000-08:00

I was doing some research on how to create a “green” office. As I was gathering my information I started musing on reactions of some of the staff and even the lady who takes care of our office housekeeping needs. It will probably be rough going at the start since any change from the norm can be difficult for some people. But I have high hopes that after a few months, our conservation efforts will become second nature.

In processing this information I did feel some sense of satisfaction with the changes I made in my home, though I still have more to do. Now I admit that though I feel a commitment to protect the environment, I was also greatly motivated by making changes that would save me money. So though initially the concessions I made were to use less costly items, I go the extra mile to make sure my products are environmentally friendly even when a few things may cost a little extra. Ultimately I will still come out ahead.

The top two products that do a wonderful cleaning job are baking soda and vinegar. If you need to disinfect surfaces then have a bottle of hydrogen peroxide on hand. If a scent is a must for you, you can create either typical or exotic home fragrances with combinations of essential oils, distilled water and vodka. Use coffee grinds placed in discreet locations to remove odors from the air.

When I started writing this I remembered seeing a broadcast about pet foods and how they are prepared and packaged to sell to the pet owner. Fido could not care any less for the color or flex of real veggies in his can of food. Making the food appealing to the consumer is the priority. So too with many cleaning products. Are we looking to properly and safely meet our cleaning needs, or are we buying into what the manufacturer says we should have – in order to empty our pockets to fill his?

So yeah, you may get a few snickers when you start making your changes, but it’s a win/win situation. You will be doing your share to protect the environment while saving a few bucks on the side.

http://www.eartheasy.com/live_nontoxic_solutions.htm provides safe and inexpensive house cleaning suggestions.

The Investing in Mutual Funds Starter Kit

2007-11-25T10:30:00.000-08:00

How to Invest When You’re Broke is a good article I read on the MSN Money website. Written by Harry Domash, it is the type of simple article for which I’m always on the lookout since it is great if you are just trying to start managing (growing) your money or if you need clarity on some aspect of investing on which you are unclear.

Mr. Domash gives a fine explanation on what a mutual fund is and why it is better to invest in mutual funds if you do not have much money to invest. If you are buying a share in one company, your money fluctuates with that one company. With a mutual fund, your money is divided across a number of companies, so if one doesn’t do too well at some point, the other companies can help balance it out. Yes there is risk, but that risk is somewhat reduced.

He also points out that you are now relying on a fund manager to watch and monitor the stocks in the mutual fund you have selected. This lifts that tracking burden off of you, the investor. The managers are investing experts, so it is their job to grow your money for you.

What I also liked is that you get 4 starter suggestions of funds in which to invest. I try to keep an eye out for funds requiring low minimums and low monthly investments (automatic deposits are the way to go) and usually check Money magazine for their listings. But again, for those who have not yet ventured into researching funds, Mr. Domash provides a nice concise breakdown of his recommendations.

Don’t forget the tax benefit of regularly investing in a retirement fund (an IRA), which is also covered in this article.

Check out the article for yourself at http://articles.moneycentral.msn.com/Investing/SimpleStrategies/HowToInvestWhenYoureBroke.aspx?page=2

How To Fund Your Holiday Shopping

2007-11-15T17:48:00.001-08:00

With stores already decked with festive ornaments and commercials playing Christmas jingles, shopping for the holidays ahead rests heavily on many minds. Check the MSN website to find some creative shopping tips to help you manage your gift budget. Regular contributor to this website, Liz Pulliam Weston offers 10 dollar stretching suggestions to help shoppers cover all the recipients on their lists

I thought using accumulated spare change was one of Ms. Weston very practical suggestions. It is reminiscent of emptying out my piggybank as a child to do my Christmas shopping, only now I seem to have collected a lot more spare change. I usually use this for my vacation spending money, by this year I think it will go in the Christmas gift fund.

The second idea that I thought to be creative was submitting for outstanding reimbursements, as in your flexible spending account or travel expenses. If you have receipts laying around that you have not submitted to your employer or benefit provider to be reimbursed, now you have a good reason to do so.

For more ideas go to http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/10WaysToPayCashForChristmas.aspx?page=1

The Story Behind the Sales

2007-11-11T13:08:00.000-08:00

Aeropostale is a store that I seldom shop, but I must admit that at my mature age, I still hate to get dressed up in my “big girl” clothes. The deterrent for me was usually cost. I would sooner spend what it cost to buy jeans and a t-shirt at Aeropostale on a business suit from Macy’s. Little did I know what decisions were going on in their executive offices when I bought some t-shirts and a swimsuit for under $40 last summer. So let me fill you in on my new found knowledge.

I was reading the Crain’s article entitled Aeropostale Woes Make Stock Cheap, Attractive by Elisabeth Butler Cordova (9/17/07) about the Company as a possible investment. Due to market downturns, trends that have been impacting shoppers and the overall health of the business, Aeropostale’s stock has fallen sharply. BUT the powers that be have decided to bless us, the customers, with some great sales. This may help them break even over the upcoming holiday shopping season as I’m sure many other retailers are planning.

As you are learning about managing your money, I can assure you that reading up on what’s happening in the stock market can have a double-ended impact. The article states that since the stock has fallen, it might be a good time to buy some shares with the long-term picture that the shares will go up again over time. That translates into eventually seeing a profit from your investment.

Today a share in this company is about $23. This price shifts upwards or downwards on a daily basis. The cost has been as low as $18 and up to $32 over the course of one year. (Even though the cents matter, for this purpose I am excluding those figures.) Those who analyze stock by examining companies’ financial records still see this as good investment according to its ratings. This may not, however, be a good thing for someone who is new to the world of investing in stocks as opposed to mutual funds.

As much as I write about saving, this may be just a roundabout way for you to learn about companies that you do patronize. So the other benefit of getting comfortable with this type of reading is that you learn which businesses are lowering their prices, but, more importantly, why they are doing so. You start seeing an excellent sale from a new purview. No, holiday sales are nothing new but with the inside scoop, you see the business as opposed to the consumer side in a whole new light.

Soap and Money

2007-11-06T19:01:00.000-08:00

No, today’s blog is not about the intricacies of money laundering. In this case I’m referring to Spanish soap operas or “novelas”. These programs may be a means of providing financial information to the most rapidly growing American minority. At least this is one suggestion posed by the U.S. Treasurer Anna Escobedo Cabral.

According to an article in www.diversityinc.com by Eric Hinton entitled Adultery, Amnesia and … 401(k)s? Latino Soaps Offer Financial Advice, timing could not be better for reaching out to this segment of the population with the sub-prime mortgage crisis in full swing. “Analysts expect black and Latino homeowners will be disproportionately impacted, as they are more prone to be the recipients of sub-prime loans.”

Spanish language stations have been in full swing and regularly watched for decades in this country. This, therefore, can be a powerful means of reaching this group since, as Hinton notes, 20% of U.S. born Latinos watch channels such as Telemundo. You are also talking of a population of U.S. born Latinos who “are expected to represent more than 75% of U.S. Latinos by the year 2020 according to census data.”

Filling in this scenario is the plight of immigrants initially coming to this country as I wrote in more detail in my blog of Nov. 5 entitled “Coming to America”. This truly can be a creative method of reaching the women of these households since currently the material on financial literacy is scant for people whose first language is Spanish. And as you now, I am all for new ways of making solid financial information available to all women.

To read Eric Hinton’s full article, go to
http://diversityinc.com/public/2642print.cfm

Coming To America

2007-11-05T16:26:00.000-08:00

I was researching material on immigrant women in this country for a project I would like to undertake. Shock is a mild description of how I felt about the lack of available information. I don’t get it. From the observation point of one of the most diverse and progressive cities in the U.S. with an untold number of immigrant residents, where do the working immigrant women fit into the financial picture of women in general?

“Often invisible and undercounted” is how a NY Times article dating from August 15, 2005 put it. So you have this enormous and ever growing population living in New York and receiving wages, yet we know nothing about this group because a significant percentage of them may be undocumented. The next question I pose is where is the voice speaking on behalf of the legal residents?

Again, I do not use this forum to pose any political debate about whether the issue of illegal immigrants is right or wrong, nor do I pose any solution to this. My concerns are that we have a population of women who are underpaid. Some of these women may be subjected to verbal and even physical abuse by an employer because they feel they have no legal recourse. We can deduce that a number of these women are living in substandard conditions because they cannot earn the wages needed to raise their standard of living. Odds are that a substantial number of them also send more than 50% of their income to their native countries to assist relatives living in poverty there.

I think that the more difficult obstacle would be that women living under these circumstances may not be open to changing their financial status by taking the necessary proactive steps because there may be a whole cultural dynamic involved. Suppose a wife works at a sweat shop, will she be allowed to change how she manages her low salary with the goal of increasing her wages and savings? She may ultimately be able to provide greater support to her family but would they allow that temporary deferral to an investment vehicle to accrue interest?

Also what obstacles would she face going through the customary savings and investment processes due to her legal status? Through homeland security, the measures in place to protect us from undesirable handling of money by subversive groups, may also negatively impact a woman trying to manage her low earnings.

It is difficult examining this situation because if my goal is to motivate women to step up in the world of employment and money management, shouldn’t these women on some level be part of the process? Does their position skew the picture of working women in America? It is something to ponder.

Big Yields of Negotiating

2007-10-29T16:40:00.000-07:00

As I mentioned yesterday, it’s a good time to buy property if it is something you have been planning to do, because it is truly is a buyers’ market.

Sellers are willing to settle for a lot less than their realtors have listed online or in real estate publications. Of course there are those die hard sellers, willing to wait however long it takes for the market to turn in order to try to get top dollar for their homes. This may be possible in neighborhoods of million dollar houses, but in median income neighborhoods, sellers generally want to sell in as short a time as possible. This allows plenty of leeway for most buyers.

I recently heard that some builders are willing to sweeten the pot to unload their new condos sitting on newly developed lots. When you hear of asking prices being reduced by $30,000, it says there is a lot going on in the market that is worth investigating.

Some sellers may be looking for buyers independent of a real estate agent. By selling without an agent the buyer gets some room in negotiating a price because the seller does not have to be concerned about forking over a fee to an agent. However both parties should have good real estate lawyers before entering into this type of transaction.

In some states I understand that even buyers with the best of credit may not be able to readily obtain a mortgage. Many lending institutions are finding themselves involved in financial hot water even to the point of bankruptcy due to the fallout from bad loans. (See yesterday’s blog.) This has caused a spillover to many reputable banks, who are now looking more closely at their mortgage applicants. Bear in mind that if you are rejected for a mortgage, you should get the exact reason for rejection in the event it is something that can be readily corrected.

With great prices out there and finding the right mortgage, now is a good time to start looking for what you may consider your biggest asset. But be prepared to negotiate!

Home Sweet Home

2007-10-28T18:35:00.000-07:00

Have you been keeping up with what’s happening in the real estate market and maybe even with sub-prime loans? Well now that we’re on the subject, let me give you my take on this.

It’s a great time to buy a house, if your credit is good and you have a down payment, that is. Ideally you would need to have at least 10% of the price of the property for a down payment before moving forward. You may need even less if you are applying for a mortgage under a first time homebuyer program. But in all cases there are various processing or closing fees you will need to cover.

The other overlooked money concern to know is that there is no super to call in to do a repair on a property you own. So when figuring out if you can afford a house, plan on maintaining an extra cash reserve to call in a plumber or electrician if needed. Contact utility companies and other home owners in your area of interest to get estimated utility costs so you will be prepared for those bills.

Looking at property costs in New York’s 5 boroughs is hard, but there are alternatives. You can get together with either serious family members or friends, pool your money and enter into a legal business agreement to buy property. Purchase a duplex or multi-family dwelling and use one unit as your primary residence or use the whole property as an investment by renting the units. The big warning on this is not to rush into purchasing a property that needs a lot of work, regardless of who the handyman is in your family. This could ruin your relationship with your business partner(s) as well as land you all in debt.

Another alternative is to buy property far from the City. The further out you move, the less homes cost. You may end up with a major commute to work but in the long run, it may be a surprisingly great financial move.

I’m not quite sure why so many people got caught out there with those horrible loans. I understand that many of these buyers went in to the purchase with no money down and bad credit. What made them think their financial habits would miraculously change to accommodate large mortgages? These two factors alone pretty much guaranteed the inevitable foreclosures they would face.

Many then entered into mortgage agreements that involved balloon payments. From this, the lessons learned are: When a loan payment will change over a specific period of time based on interest rates, which cannot be guaranteed, do not sign! If you are dealing solely with a mortgage broker and realtor, do not sign anything!

Everybody’s mother has told them at some point in their lives, “don’t sign anything you don’t understand” or “read the fine print”. When it comes to real estate, not only is that true but you go the extra step of finding a good real estate attorney who will review all documents and loan agreements to insure you are not getting a raw deal.

I'LL BE BACK

2007-10-24T08:06:00.000-07:00

I was forewarned when I started my blog that it would be the kiss of death if I didn't post an entry everyday. Yes, I have fallen off, but I do hope not to lose any of my regular readers.

This week I've been working on setting up my website and other materials related to offering financial education workshops. I actually enjoyed writing my blogs so much that some of the projects on which I was working were put on the back burner. So it's time for me to get back on track.

I do anticipate having new blog entries for Monday, Oct. 29th. So check back.

Stuck in the Money Trap

2007-10-21T15:40:00.000-07:00

MSN featured a great little article entitled “Ten Little Money Traps” (see link below). The article lists inexpensive items that can total well over $1,000.00 during the course of a year. Money regularly spent on cigarettes, cups of coffee, manicures and unused gym members do add up and not enough can be said about that fact.

Bottled water is my favorite item on the list. Not only is New York City known for its great tap water, but by not using our household water, we introduce pollutants into the environment with purchases of our drinking water bottled in plastic. Some people also believe that plastics introduce toxins into our bodies, but that’s another debate.

It’s not to say that we have to completely go without our mini-luxuries to save a dollar, but we have great alternatives that can ultimately save us money. It particularly goes a long way for those who do not earn a huge salary but would like to start up a savings account.

http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/10LittleExpensesThatAddUpFast.aspx

The Picture of Health

2007-10-18T16:21:00.000-07:00

The bogeyman of aging in the U.S. is healthcare. In talking to seniors of at least 65 years of age, maintaining adequate healthcare after retirement is of foremost concern. When you think in terms of planning for retirement, I believe this should be the centerpiece of your planning.

In terms of how we age, it is my belief that with all the information available, we should be involved with preventive healthcare practices such as establishing healthy eating habits, exercising as much as possible and maintaining an overall active life with a positive outlook. But of course there is no written guarantee that we would not fall victim to an accident or other health emergency. If we maintain good health insurance during our working years, why wouldn’t we want to maintain the same level of coverage after retirement when the chances of need increase? The bottom line is, you can juggle housing costs and other living expenses, but a major illness can hit at any time.

Here is where it gets complicated. Currently, a person over 65 is eligible for federally sponsored Medicare coverage. It seems that based on income, a person has to pay for a necessary part of this coverage just as he/she paid for health insurance during employment. The prescription part of Medicare happens to be more costly than those offered by employer sponsored insurance. These costs, therefore, have to be factored into retirement planning.

Why am I selecting this topic since a good many of you don’t have to be concerned about this yet? Because when flip-flopping on decisions about 401Ks and other retirement savings, be aware that one of the quickest ways to tap out your savings is to be faced with an unexpected illness. We hear stories of some seniors who have to decide what medications to take or forego, simply based on affordability. This should not be a choice any of us should have to make.

Another consideration I have heard from a few New York residents is deciding whether or not to relocate to another state, usually in the South. Costs of medical services weigh in here as well. New York seems to have a larger variety of medical services for seniors that are less expensive. So even though the cost of living may be less in other states, health care expenses can be exorbitant. What comes into play is that many insurance plans that work in conjunction with Medicare in New York are not honored or available in other states. This causes some retirees to give up the dream of moving to a more comfortable climate or to consider moving back to New York after facing this reality.

We still come back to the answer as planning as best as you can for retirement thereby allowing you choices for the quality of life you wish to live.

The 2nd Go-Round

2007-10-16T17:38:00.000-07:00

While going through the latest AARP Bulletin, I was once again struck by the realization that many people who have not accumulated sufficient funds on which to retire may well have to continue working beyond what they had expected. If they want to continue living the quality of life they created for themselves, then prolonging the regular income and subsequent increased investments in retirement plans may be their only option.

There will actually be two groups of senior workers: The first group will be working to continue to adequately support themselves while the second group will work out of personal choice not affiliated with financial need.

Putting a positive spin on the overall picture, if life expectancy continues to lengthen as we are involved in more proactive healthcare, we may actually not be ready to retire at 62 or 65. We may want to maintain our same level of activity and productivity. I totally buy into the belief that we have a minimum of two go-rounds to live out our lives.

For many of us, the first part of our adult lives, let’s say from the age of 21 to 45, have been involved with child-rearing and being a homemaker while working outside the home. The focus was on our external life. Our second life, from around 45 to 65 or older is for our internal self. This is our opportunity to work at the career of our dreams, return to school to get that degree we didn’t pursue when we were younger or start our own business.

This second life is also the chance to re-group and get our finances right. Maturity has taught us how to navigate around our spouses or in some cases even end relationships that have debilitated us. Patience has taught us to work towards the big picture. Hopefully we have learned how to say “no” to our now adult children since we know that it is our turn to support and nurture ourselves.

So plan wisely if you are in your first go-round and make the most of the second, if that’s where you are.

Numbers Made Easy

2007-10-14T09:27:00.000-07:00

So you can’t afford a personal assistant just yet, but you want to find an easy way to start playing around with numbers. You want an idea of how long it will take to reach a savings goal or what a mortgage will look like if you are contemplating buying a condo. Until that personal assistant comes along, there are a number of good online calculators to help you out. I would suggest starting with those offered on the MSN website.

When you go to the MSN homepage at www.msn.com, click on Money which is listed in the directory at the top of the page. You will find loads of information and articles on the Money site. As you look further down the page you will see several categories. If you click on Banking, not only will you find information about current interest rates on various savings and loan accounts, but you will also see Banking Tools which contain different calculators.

One such calculator is for Savings. If, for example, you want to buy a new car and would like to save $3,000 for the down payment, you can see how long it will take to reach that amount if you are depositing $500 per month into an account offering a 4% interest rate. The calculator comes up with the targeted amount including accrued interest and tax adjustment along with the length of time it will take to reach that goal. Based on these figures you can see if you need to make further adjustments to reach your goal or decide where to save for the best interest rates.

You can also find helpful tips on spending, information on student loans, investing in stocks and mutual funds and tax issues. These are also accompanied by relevant calculators.

The MSN Money website found through www.msn.com is an excellent resource which I highly suggest as you increase your financial knowledge base. The site has readily accessible information with lots of good tips for women. Take a look and see all the great tools offered.

Rethinking Success

2007-10-12T10:58:00.000-07:00

If you are looking for an inspirational how-to guide on jump-starting your career and bank account, then definitely put Barbara Stanny’s book Overcoming Underearning on your must read list.

What I enjoy about her books is how she taps into to all of the anti-success thoughts we harbor that keep us from reaching our personal best when it comes to being successful in life. And yes, money does play a huge role in that success.

This book is very interactive, with exercises which encourage you to examine where you are and why you are at that place in terms of job and current financial status.

Ms. Stanny helps us to understand the importance of doing the “inner work”; our “thoughts, feelings, beliefs, attitudes and decisions about [ourselves] and money”. This is necessary for the outer work to take shape, which is actually negotiating our positions to higher levels in work and finances. An affirmation can’t take hold in our psyches if a firmly held contrary belief is not rattled and uprooted.

Overcoming Underearning is crammed full of great information in an almost succinct style. You may very well find your answer to why your attempts at financial success have fallen short of your goals.

Happy Reading!

A Different Choice

2007-10-11T14:18:00.000-07:00

Any time I hear a heated controversial debate over choice, it is a political tug of war about the rights of a woman over her body related to reproduction. That’s quite a force battling on behalf of women on both sides of the controversy.

Why don’t women have anyone doing serious battle for their rights and treatment in the workplace? I think we all got a glimpse of what a woman must go through if she wants to fight against sexual harassment on the job with the case brought by Anucha Browne Sanders against Isiah Thomas and Madison Square Garden. Ms. Sanders even said in her victory address to the press that not all women have the resources to wage this type of court battle.

Though there are laws in place, women do not have much assistance in asserting their rights to a workplace free from various types of harassment or discrimination. Women also don’t have anyone to help them battle against inequitable salaries. By this I mean women receiving lower pay than men for doing the same jobs in the same companies. As unfair as it may be, it is apparently not considered “unjust” from a legal (male-dominated) perspective. Overall I see the unfair practices that regularly occur in the workplace as a double standard that keep women in the place of second class citizens in present day American society.

Empowerment allows freedom and freedom permits choices. Financial empowerment means you don’t have to settle. How many times do you ask a seemingly unhappy woman why she doesn’t change a certain aspect of her life, only to hear, “I can’t because …” or “I have no choice because …”? These “I can’t” statements are usually resolvable if the right amount of money is available. So doesn’t choice come down to money? And doesn’t having representation in different issues also come down to who holds the purse strings?

How can the table start to be turned? When a woman lives from paycheck to paycheck defined by her spending habits, she binds herself to a dead-end job or toxic employer. Often by locking onto false beliefs about spending decisions or who controls her money, she relinquishes her ability to seek out a better employer. I believe that women need to learn how to start freeing themselves from the dance between the oppressor and being self-oppressed by gradually showing that they are firmly in charge of their money.

Maybe by redefining their spending habits they can step up theirs savings, or supplement their education to get a higher position. Both allow for more control over careers. As women start increasing their own financial controls, they start shaking the male dominated power base.

What are some of the other issues for which we need political clout? Pro-choice has been the rallying point for women’s causes for a few decades. Why not turn the microscope on different, unaddressed matters that deeply impact our other choices, including equitable pay or access to better assistance relating to harassment and discrimination on the job.

Election time is approaching!

The Next Step in Social Networking

2007-10-09T17:32:00.000-07:00

I found another good website that may be of interest to you. It is www.geezeo.com. I thought their blog provided some good information, so I researched a little further and found that they offered some other new and different features.

Geezeo operates like a social network similar to MySpace combined with Quicken-type features. This results in the ability to gain access to helpful information from other members as well as the ability to track your own expenses and investments. It allows access to the user’s bank balance information via cell-phone and can assist users to accomplishing goals they list on the site.

There seems to be quite a buzz about this relatively new company started sometime in June, 2007. Geezeo has gotten nods from the likes of the Wall Street Journal, Newsweek and the Chicago Sun Times. That’s some enviable publicity.

The site is VeriSign Secured, which is always a comfort to me. Along with a detailed explanation, with diagrams, I might add, you get a picture of how they keep your financial information private.

Check out Geezeo and see if the website offers features that may be of help to you in managing your money. If you decide to try it out, do post your comments about it.

The Case of the Invisible Bank

2007-10-06T14:53:00.000-07:00

I have to credit one of my co-workers with starting me on the road to online banking. Consider it as virtual banking, which is done completely online, and not affiliated with a regular (physical) bank.

One of the best ways to save money is to automatically do so. You have a set amount of your income going into an online savings account, or retirement account, on a specific day(s) each month. This is a method referenced by top books on financial management for women. You can also learn about this in more detail by reading The Automatic Millionaire by David Bach.

The drawback for me focused on approximately one year earlier, when the same institution I was considering was hit with theft of their customer database. I became very leery about the online bank concept with all the warnings about identity theft.

So when the discussion came up about banking choices, my co-worker expressed her satisfaction with the service as it helped her to save on a regular basis. The additional lure was that the interest rates tend to be higher than those offered by a conventional bank. This is largely due to the fact that there is much less overhead since such companies do not have to maintain multiple bank branches throughout the city or state.

Clearly as the bank had been aggressively trying to lure customers, they would have had to urgently address the problem. It would have been a public relations and managerial suicide for this company not to as aggressively work the kinks out of their online security system that allowed the initial theft. So I decided to sign up.

I must admit that the application process is not quick. There is a tedious password sequence to setup an account as a deterrence to hackers. There is also mailing involved with pin numbers and account approvals. Yet the complexity of setting up my account helped to quell my concerns about the ability of any unauthorized individual to gain access to my information.

I find that this banking method works well for impulse buyers since accessing cash takes time. Withdrawals take place by transferring the desired amount from the online account to the personal checking account. This takes three business days to complete. Personally as I designated this account for vacations and gift purchases, I know I can’t make impulse buys and have to plan in advance if I need to make a withdrawal.

Conventional banks also offer online banking services with a higher interest rate than the standard savings account. But these funds are readily accessible at the branch or an atm machine with your atm card.

The combined benefits of virtual banking are maintaining an automatic savings account while making the saved money work a little harder by earning a higher rate of interest than a conventional bank offers.

I am satisfied with my decision to use this method of banking and highly recommend this type of account to anyone looking for an additional savings vehicle.

The Wild and Crazy World of Accounting

2007-10-04T17:57:00.000-07:00

Remember when the career of an accountant drew a snicker? Well, no more. Accounting has become one of the top fields to enter for varying reasons. There is a growing need for accountants by companies being affected by the aging workforce. It is also a very stable field that pays well. Based on a salary.com calculation, I would estimate that for someone with a bachelor’s degree, the average starting salary in Manhattan would be around $50K.

Now the bad news for women: According to the article Women Are Not on Par(tner) With Male Colleagues in Crain’s New York Business for the week September 24-30, 2007, Joe Cavaluzzi wrote that women “make up 50% to 60% of the profession overall” yet they “make up less than 20% of the partners in most firms”. And so the saga continues.

The standard reasons for this disparity are the same as you still hear concerning many corporations: Women who may be on track for upper management positions self-sabotage by becoming pregnant or allowing any part of their family life to spill over into their careers. If a woman temporarily leaves her job for childcare purposes, is she correct in her perception that upon her return to her position, she will be underutilized? That translates into losing her hard-earned footing on her career path. She may well choose not to return to her position if this is the case.

The article mentioned 2 top companies that are implementing retention programs for their female staff. This is admirable but will this trickle down to the rest of the seemingly old boy network?

Thinking in terms of women’s empowerment, I always encourage women to look at the strategies that men implement to move ahead in their careers. What are some of the tips that we can use to help us gain an edge, without trading off our feminine identity?
* Men strategize about their careers. If you have gotten the education needed to put you on your chosen road to success, it is also worth investing some time and effort into creating a personal mission statement.
* Men tend to let their career goals be known. So too women should not keep their goals secret. They should also be networking with both men and women.
* If you do anticipate starting a family, when you plan to tell your boss or staff of your pregnancy, you should also document how you plan to cover your position and your return to work. Sometimes it is a matter of working smarter rather than longer. Include alternative plans. This is a good time to discuss how you plan to continue on your career track.

(A pregnancy or childcare obligations should not infringe on co-workers. The way you manage these life changes should always be on a tactful and professional level.)

Then there is always the possibility of creating your own accounting firm in partnership with other women. To me, this is the ultimate way of eliminating that glass ceiling while creating your own power base. Believe me, the business is out there to be had or the field would not be growing at the rate it is.

With that clearer picture in mind, I think accounting is a great career to examine, especially for women who are contemplating a career change.

Your Latte or Your Life!

2007-10-03T12:58:00.000-07:00

Now what’s wrong with this picture? In real estate, this is a buyers market. You have a decent job, but can’t seem to scrape together a down payment to buy a home. You are also completely unable to put together three months’ income for emergency savings. Maybe the daily lattes and $12 lunches seem like dire needs at the time, but they cannot come close to the personal satisfaction you will get by accomplishing landmark goals in your life. You do this by first tracking your spending, identifying your impulse buys then reducing or eliminating these purchases.

If I had to suggest where to start developing a savings plan, it would be to track expenses. No, it is not fun. There is no way to candy-coat that one. I guess I would liken not tracking expenses to taking a trip to a foreign country with no map or itinerary.

I absolutely procrastinated on doing this. Typically I don’t believe I spend a lot of money but I really needed to know what I spend on a daily basis. I also felt that if I missed an entry or two in my log, it would be hard to get back on track. So after making many other financial adjustments, it was time to stop playing hide-and-seek with my money and start recording every dollar and cent I would spend over the course of one month. (I had to envision this as a month by month process instead of the preferred 3 month period.)

On completion of this exercise, I confirmed that I needed to be more organized with my spending. The month I logged was a big ticket month with different events that I had to attend and for gifts I had to purchase. Also, even though I didn’t hit Starbucks during the month, the daily dollar cup of coffee still added up. Topping the list, I made about 4 stops per week to the supermarket for grocery items.

My findings allowed me to put some changes in place, which included a more specific shopping list and adjusting my savings to accommodate events and gifts. The resultant savings go into my account earmarked for a more important long term goal.

I am not minimizing the prospect of buying your first property by saying all you have to do is drink less coffee and save the change. I am saying that by the adjustment of spending habits, you may be able to save surprising amounts of money, that can, if properly saved and/or invested, help you buy that condo or grow that personal emergency fund.

Single vs. Married

2007-10-02T09:33:00.000-07:00

My blogs are about empowering women to take control of all aspects of their finances. I intend for my blog to be read by women in general, not just women in a particular situation or status in life. If a reader happens to be very savvy with her money, she may find my contents of value, enough so to forward to women who she feels may benefit from the information.

I do want to put it out there that I am not against what we have considered traditional family roles. That is great if that is your situation. However I would advise be to be involved with your family finances, even though your husband may be the primary or sole breadwinner. If any major and/or unforeseen change takes place in your home, you will be equipped to carry on in the absence of your husband’s participation.

If you are fortunate enough that life goes along well with no upsets, then you will be in the admirable position of having assisted your husband in building toward a comfortable retirement.

Help for Victims

2007-10-01T15:19:00.000-07:00

On the recommendation of one of my readers, I am providing the number of a domestic violence hotline. If you are a victim of domestic violence and live in New York, please call Safe Horizon at 1-800-621 HOPE (4673). You can visit their website at www.safehorizon.org.

If you live outside of New York, you can call the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or TTY 1-800-787-3224. Their website is www.ndvh.org. They provide assistance to residents of all 50 states as well as Puerto Rico and the U.S. Virgin Islands.

Your safety and the safety of your children are of the highest importance.

When I Grow Up, I Want To Be Poor

2007-09-29T07:11:00.000-07:00

If you were to lose your job tomorrow and it will take three months to find a new job, would you have enough money to maintain housing and living expenses until your first paycheck?

Related to my previous blog on the psychology of money, we view our place in the financial world in light of our perception of what it means to be rich or poor. Beyond that view, the average woman does not paint a picture of her actual role in the world of money. By failing to do so, many women work in jobs that are dead end positions. Further, they live with the stress of knowing they dare not walk away from that job. That would open them up to the possibilities of losing their housing, inability to support their children and dealing with aggressive bill collectors.

Let’s forget about the financial advice of having 6 months of living money stashed away. What is your current reality? Under the current economic conditions in this country, middle-income families are living two to three paychecks away from poverty.

As young adults, we see ourselves with bright futures. Unfortunately, we tend not to plan or strategize about our employment. We don’t analyze how the income we accept will make our dreams a reality, let alone meet our needs in the long term. We also don’t see the importance of maintaining a savings account in case we lose or change jobs or in the event of a crisis.

The woman who makes a substantial salary, but lives above her means may also not believe she needs to save for that rainy day. Though she may look great and live a nice lifestyle, she too may not be sitting too pretty if the paycheck stops. In his book, The Millionaire Woman Next Door, author Dr. Thomas J. Stanley refers to these individuals as Income Statement Affluent. They have all the visible trappings of wealth but do not accumulate real wealth to allow freedom of lifestyle choices. They live on the constant treadmill of work.

The women who are very conscientious of their spending habits and make very strategic employment decisions are classified by Dr. Stanley as Balance Sheet Affluent. Their accumulation of wealth allows for many life choices. Further they work because they enjoy their work not because they have to. These are women to emulate.

When you live from paycheck to paycheck you are steps away from poverty. I’m sure when you were playing make-believe as a child, you never dreamed of being homeless.

In a future blog I will address how this picture plays out for the woman in a two income household.

The Money and Abuse Connection

2007-09-27T08:53:00.000-07:00

If I had to give advice to women who are involved in a relationship affected by domestic violence, it would be:

1. Educate yourself about money. Read books and magazine articles for women about money management. Utilize your local library as a resource which also offers privacy. Find TV shows that provide information on building income. Also obtain free advice from banks and investment companies by making inquiries on how to save and grow money.

2. Start a personal savings account with the assistance of a trusted friend or relative, preferably in some type of interest bearing account. This should be done in conjunction with a safety plan. Similar to how our grandmothers squirreled away “pin money” for a rainy day. So too, try to save as much as possible on a regular basis.

Your situation hopefully will change and both suggestions will go a long way for your benefit.

Money means freedom and choices, hence money is a great tool of domination over the spouse. The victim in an abusive household cannot be allowed much access to any possibility of freedom. The abuser therefore, in one way or another, strictly monitors household money. What many people don’t realize is that abuse does not always have to be physical. It can also be mental and emotional. So in many cases, the victim has been indoctrinated to feel she’s stupid and cannot make any proper financial decisions. She may have started off as a strong person in the beginning of the relationship, but an erosion of self-confidence takes place over time.

Power and control are the twin components of any relationship tainted by domestic violence so freedom from this oppressive lifestyle is about empowering the victim. Once this balance shifts and the victim leaves the relationship, she tends to face difficulties when finally having 100% control over the money she gets, which is based on the power dynamics within the relationship she left.

It does take time to rebuild self-confidence along with a new life. It is here that the financial education comes into play with how money is saved and spent. Working towards long and short-term goals of good housing and a stable, happy family life go hand in hand with rebuilding self-confidence.

This is not really the venue to go into the complexity of the hows and whys of domestic violence, but domestic violence is a day to day fact of life for many women. The immediate concern for these women is first getting themselves and their children to safety and keeping them safe. The next step is to help them establish a life free from abuse.

Please note, though I did use the general term of spouse, domestic violence takes place in homes of partners in non-traditional roles.

The Funny Side of Money

2007-09-25T09:17:00.000-07:00

I was given a great little book which totally threw me as I first skimmed the pages. When I opened to the chapter entitled “Learn the Ultimate Rule of Success-Money Spent on Appearance is the Best Money You Can Spend!”, I quickly had to flip back to the cover to re-read the title "How to Ruin Your Financial Life".

This great set of tongue-in-check essays were authored by none other than Ben Stein. If you are not familiar with his name, you may recognize him as the monotoned teacher in the movie Ferris Bueller’s Day Off, the TV show Wonder Years, and more recently from the “dry eyes” commercials. Ben Stein also happens to be a noted economist and finance expert, so his take on current trends in saving and spending habits in this country is quite noteworthy.

Though laughing through the chapters, it is also unfortunate to think of the various people I meet who share this perspective on money.

“Let’s face it. It’s a bit upsetting to think about money. It involves mathematics, and maybe you were never very good with math. It involves discussion of the future, and as we’ve already come to realize, those discussions can be supremely boring and frightening…” pg. 5

Yeah, I laughed, but how many times have I heard that before? How many times did some of those chapters apply to me?

This book is the gift that will keep on giving since I will be purchasing a few copies to give to others who may somehow “get it” by this comedic look at money, and hopefully, decide to make some serious changes in managing their money.

The Psychology of Money

2007-09-20T13:25:00.000-07:00

What if you looked at money and your response to it from a psychological standpoint? The ability to identify how you feel about money is one key to making changes in your spending habits.

It may seem like a real pain, to start analyzing the hows and whys of your credit card debt for instance, but it really may go back to how your parents taught you what success looked like. Perhaps, how you felt when your classmates criticized another student’s outfits now influences your spending habits on clothing.

I had an acquaintance who measured success and freedom by the quantity, not quality, of food she was able to keep in her refrigerator. Her mom, a back-to-nature hippie, was very restrictive of her children’s diet. So, as an adult, she rebelled in a big way against her upbringing with her out-of-bounds spending on food. Food that, more often than not, had to be tossed since it was way too much for her needs as a single career woman. Throwing away the food was like throwing away her earnings.

Needless to say that though I had little insight into her background at the time, I frequently heard her say, “I don’t know where all my money went”.

Many popular books on money do refer to the long-term benefits of recognizing our beliefs about money, as well as our opinions on rich and poor people. Once you recognize those beliefs, you can start to make the needed long-term changes.

Cramming for Retirement

2007-09-19T11:43:00.000-07:00

I do intend for some of my readers to be women who are 20-something and 30-something, so when the topic is retirement, don't be quick to back off. Retirement planning should not be like cramming for a final knowing you've had all year to study. It should be a serious, consistent and an almost automatic process.

By waiting to start tightening your belt and sweating over retirement plans in your 40's and 50's, you are essentially boxing yourself into a restrictive lifestyle. You may not have realized that that should have been part of your personal financial planning from the time you entered the workforce. But in later years when you do become aware of your situation, you may more than likely have no other recourse.

Early planning allows you to move along at a more comfortable pace from the start of your career. If well planned, you can, according to some experts, actually start using some of your discretionary (extra) income on leisure activities when you start entering your middle years before retirement as opposed to starting to buckle down during that time period.

According to the September 2007 issue of AARP entitled "Making Money Grow"

"75 million Americans have no retirement plan at work. That is roughly half of working Americans." If women now make up approximately half of the overall workforce, we again see that we are not doing too well. After working and earning an income for most of our adult lives, where does that leave us?

Utilize the time you have in work years to implement your financial plan for retirement. Make use of financial information developed for women and definitely take advantage of any free professional services to help you. Make wise, common sense decisions over hasty decisions. You do not have to be a financial maven to create a healthy retirement portfolio.

Retirement and the Fairy Godhusband

2007-09-17T13:12:00.000-07:00

“In 2005, only 28.5 percent of all women aged 65 and older received a pension. Most pension plans vest after five years, women average a job change every 3.5 years. In 2002, half of all older women received less than $5,600 per year from a private pension, compared with $10,340 for older men. 61 % of working women today do not have pension plans, while 76 % of women who are now retired receive no pension benefits.”

Women are a minority. I am not going to get into the rhetoric of power and control over the minorities, but I will say that numbers speak for themselves. The statistics I referenced above, thanks to the website of the non-profit organization Older Women’s League, shows some bleak numbers. These numbers change based on whether the retired woman is married and if she outlives her husband.

Until I started examining what I had built towards my own retirement, I had no idea how many of us women were voluntarily climbing into the poverty boat like lambs to the slaughter. All because we followed the script and would not take control of our earnings. We repeated all the worthless lines and myths to ourselves and believed them as truths. “I’m no good with numbers”. Guess what! That’s what benefits administrators and mutual fund consultants are paid for. “My husband manages all of our money.” Yes, that’s why you are rolling in bucks now, because your husband consistently makes infallible decisions with both of your incomes. Genetic programming is a wonderful thing.

We have to start tipping that scale. It is not about taking away from anyone, but about controlling what we have with the long-term goal of living comfortably during our retirement years. Though the U.S. population as a whole is living longer than ever, women are still outliving their husbands. We have the choice on how we spend those years. Start learning how to control your savings, your spending, and yes, your investments.

Go to http://www.owl-national.org/factSheets/poverty.html for more revealing statistics on the subject.

Something About Suze

2007-09-14T12:20:00.000-07:00

I honestly think that the first and last name in financial advice for women is Suze Orman. When you mention money management to women, everyone seems to have either listened to her show or has one of her books. Whether or not the seeds of her wisdom bore fruit among the people I have encountered is another story.

I am glad to see any woman out there who can rally her sisters into being in control of their financial destinies. However, I can truly say I am not a Suze fan. I found her call-in show to be a turn off. Her humor comes off as abrasive and sarcastic. But, she knows her stuff.

Two things I learned from her were the importance of not only credit scores but of the influences that cause the score fluctuations, and in estate planning, the benefit of forming a trust over a will.

If you are not familiar with her advice and style of delivering information, check out her website www.suzeorman.com. Here you can find the listing of her upcoming shows.

Though her site is strong on marketing her products, she also offers of number of great tools on the Resources page. Again, I may not be a fan, but if her information brings you a step closer to financial independence, then climb aboard.

Money Site for Women

2007-09-13T12:18:00.000-07:00

There are some great websites designed for women with an abundance of information on money management and financial planning. One of my top picks is www.wife.org. I actually have to thank one of my co-workers for pointing this one out to me.

The website contains some novel ideas and incentives for women to start taking control of their money. The writers are sensitive to the fact that each woman may be at a different and perhaps crucial or transitory stage of life.

Hope you pick a winning idea from this site.

Benefits Abound

2007-09-12T12:16:00.000-07:00

After my two blogs on using employer offered flex spending plans and retirement plans, this is as good a time as any to let you know that when you are going through the job interview process or already working, learn about all benefits offered by your company.

In the Pennies from Heaven blog, the topic was retirement plans. A key point to know is whether or not your company contributes or matches your contribution to the plan. Also, are there other components that could further increase your retirement savings? For example, what is your maximum allowable contribution?

I went through flexible spending plans in my blog entitled More Pennies. If your company offers such a plan, what components do they offer? Usually medical, transportation and dependent care are offered. Some companies may contribute to such plans but the norm is that the plans are funded solely by the employee.

Companies also negotiate for the best medical and dental insurance to offer its workers. Best here means best for employer and employees. How high are the fees the company will be paying to the insurance provider? This is not a detail that the employer needs to disclose but you need to understand how much you will be contributing, if anything. Some companies may fund the plan 100% while others require the staff to contribute a dollar amount per pay period to the plans. Either option can influence the level of health care you receive.

Bearing in mind that these types of benefits are not mandatory offerings by a company, they can easily translate into additional thousands of dollars over and above the salary. For example, you may receive a salary of $50,000.00 per year but your benefits package may be worth $6,000. For some families the health benefits weigh in just as heavily if not more than the salary.

So, learn all you can about your company’s benefits. Ask the right questions from the benefits administrator. Specifically find out who contributes to what plans? If the jargon used is complex, do a computer search for the terms used and find websites that present a more comprehensible breakdown of the information. Browse through any benefits handbooks you are given and inquire from co-workers how they found certain components of the plans they may have utilized.

Kiplinger's Revisited

2007-09-11T08:03:00.000-07:00

As I continued to pour through the September 2007 issue of Kiplinger’s to which I referred in my last blog, I decided it was only fair to amend my comments. I was able to get lots of great information, but I do feel that the publication is not welcoming to women. So let me explain what I am looking for in any publication.

When I start discussing money with women, I repeatedly get a couple of the same comments, “reading about that stuff is boring” and “I will never be able to understand that stuff”. So my focus is finding material to which I can refer women who are interested in starting to acquaint themselves with growing their money through saving and investing.

I can name several books that are geared toward women and are great references. I can equally find websites that meet this need. However, periodicals are different. There are those that scream “man’s territory”, while others are middle of the road, appealing to both readers. I really have not come across finance magazines written specifically for the female reader. This brings me back to Kiplinger’s.

This is not the first time I have read Kiplinger’s but it was never on my top reading list for investment advice. Maybe it did have to do with “style” more than content. Overall the magazine is very factual, not a lot of fluff. I found the photos and the layout to have a more masculine appeal. Show me a picture of football players and trophies and you pretty much have lost me as a reader. The photos with women and couples did not have a pull for me. So once I overrode these impressions, I did forge on to find overall, the information very readable and timesaving as the articles quickly got to the point.

I will keep monitoring this and other publications to help ease you into the foray of finance magazines.

A Nod to Kiplinger's

2007-09-09T15:35:00.000-07:00

There was a brief article in Kiplinger’s Personal Finance magazine of September 2007. The issue contained an interview in the My Story section entitled “Investing with Nickels and Dimes”. It is one more of those “if he can do it, maybe I can” stories.

First off, I find Kiplinger’s to be much of a dry read for newbies trying to get acquainted with financial news and information and learn how it all impacts their money. There are more reader friendly publications out there of which Money magazine is my top pick. But that’s not to say that I cannot tease a tidbit of valuable information out of most of the financial magazines I read. This is one of those articles I have to post as inspirational.

The article goes into describing how a man, who happens to be a minority senior citizen, and by all standard measures for success, appears not to have too much stacked on his side, has still been able to amass quite a substantial savings. This was accomplished through systematic and consistent discipline as touted in all of the top financial advice books for women. With a simple but logical investing strategy, this gentleman built up a secure financial security base for himself.

These are the stories that keep me going!

Check out the article.

More Pennies

2007-09-06T19:01:00.000-07:00

Flex spending, flexible spending plan, cafeteria plan or Section 125 cafeteria plan: You may have heard of this plan referred to by any of these names. If this plan is offered by your employer, it is another way of taking advantage of “free money”.

The plan is frequently misunderstood and therefore underutilized. Usually the employee only hears about putting in her own money, with no match by the company, to pay for certain inevitable expenses. The real deterrent is when she learns of the “use it or lose it” string attached to this contribution. So why bother?

Let’s look at Judy’s decision to use the cafeteria plan. Judy will be sending her son to daycare while she is at work. With the cafeteria plan she can have up to $5,000.00 of her pre-tax dollars contributed to the plan for dependent care costs which will be deducted from her bi-weekly checks over the course of the year. The free money Judy gets is through her taxable income being reduced after calculations due to her use of the $5,000.00. As in my previous blog Pennies from Heaven, this means Judy will either be getting a larger refund or owing less in taxes.

In addition, employees can utilize flexible spending plans for medical expenses, but this can be trickier. For medical and dental out of pocket payments, such as co-payments and over the counter medications, the plan is a great idea, but the wisest approach is to underestimate rather than overestimate the projected expenses in light of the plan limits. This will insure that all the money allotted to the plan by the employee is used and not lost.

Companies vary in what they offer in their plans, therefore some include coverage of transportation expenses related to their employees’ daily commute to work. Here, the amount of the employee’s contribution is determined by the calculation of the anticipated transportation costs over the coming year.

Again, all contributions are with pre-tax dollars, which benefit the employee during tax filing time. In a reverse observation, the savings can be viewed as costing less for the service at the time of payment.

Of help in making the decision of whether or not to use a flexible spending plan is to have your employer provide you with a list of all allowable expenses under the plan.

Pennies from Heaven

2007-08-29T11:00:00.000-07:00

Have you ever noticed that the words “free money” gets ones attention like few other words can? Well in the work world “benefits” should translate into “free money”. I don’t want to point fingers directly at any human resources/benefits departments, but surprisingly, many workers don’t quite understand the extent of their benefits package. So respectively, they may be turning away money to which they are entitled.

In retirement plans, companies differ in their employee offerings. First off, the employee portion of the contribution to the retirement plan is often funded by the employee’s pre-tax dollars. For example, if Judy makes $30,000.00 per year and decides to contribute $2,000.00 over a 12 month period to her company sponsored 401k (or 403b), she will only be paying taxes on the reduced salary of $28,000.00. Her income tax filing will be based on a $28,000.00 salary instead of a $30,000.00 salary after adjustments. In turn, if Judy usually owes taxes, her payment will be less and if she usually gets a refund, the refund amount will be increased, all based on that $2,000.00 contribution. This is potential “free money”.

Secondly, many companies match whatever contribution the employee makes, though the amount/percentage varies from company to company. If Judy is contributing $2,000.00 per year to her retirement plan, and her company’s policy is to contribute 50% percent of the employee contribution or, in this case, $1,000.00, Judy would be receiving extra “free money” of $1,000.00 per year in addition to what the tax savings would be. Annually Judy will be accumulating $3,000.00 toward retirement. With the interest that the plan will be earning, Judy is off to a good start on her retirement savings plan.

Two questions that any employee should ask themselves are:
“What am I going to live on when I retire?” and “How much will social security pay me when I retire?”
Both questions will provide the answers to why it is crucial to use any retirement plan offered by your workplace. Even if your employer does not match your contribution, it is a tax break for you.

When a person is looking for work or already in the workplace, get to know the benefits offered and be poised to take advantage of any “free money”.

Risky Business

2007-08-16T07:35:00.000-07:00

In my blog of August 10th I referred to risk when it comes to investing. Well fear of risk-taking also applies to employment. One of the ways women can earn top dollar is in the field of sales. The companies that pay salaries based on 100% commission are also the companies in which one can start earning 6 figures in a few years.

There are some companies that start their employees at a low base salary while the balance of the salary is earned on commission. There are also bonuses, all of which total a nice annual salary.

Granted, sales positions are not for everyone. It takes the right personality, positive mindset and the willingness to take the risk of opting for high commission as opposed to a low guaranteed salary. Faith in the company and the product is not only crucial but go a long way as a confidence builder in selling.

To find the right companies, research is important. Be sure the company has a good reputation. Bypass companies that indiscriminately accept all applicants and ask potential employees to spend their own money on training.

It serves women well to be strategic in planning their careers with the goal of earning top dollar for their skills for the sake of long-term financial freedom. Fear of taking risks conversely prevent women from earning as much as they can and from growing the money they do earn. Start eliminating the fear messages by replacing them with words of confidence and a consistently positive attitude.

Promises, Promises

2007-08-10T11:18:00.000-07:00

I was reading a book on minorities, specifically about the financial situation in Black communities. It was good reading insofar as the opinions could easily be paralleled to women’s financial situations, viewing women as one of our Country’s minority groups.

One of the things that stuck out was that the minority in question would not invest unless there was some sort of guarantee on their investment. For example, they would not invest money in a mutual fund which would pay a return of 10% interest over, let’s say, an 8 year period, but without hesitation would put that money into a local savings account which would never hit 2% interest on their savings. But at least, they posit, their savings are guaranteed.

It would serve women best if they replaced the word risk with information. Getting information and learning about the best ways to grow your money is one of the ways women can develop financial stability. There has to be some level of risk in different methods of saving/investing. As the price of stock and mutual funds do not remain at one level over time, that “risk” allows the interest rates to be well above the interests of savings banks. So as stock may lose a few dollars at different intervals, they gain a few dollars over time. The investor should seek stocks offered by solid, established companies with a good reputation, for the long haul. (Banks do invest money of their account holders in various stocks and bonds in order to offer the interest on savings that they do.)

To reduce risks involved, become a knowledgeable consumer related to savings possibilities. There are many great books out there on money management for women and they all at some point provide understandable information on investment choices. Banks and online brokers are great at providing specific investment choices. That is their job. Do no be reluctant to seek out their advice. Make your money work for you, even if you are starting with small amounts. Being a mathematical genius is not a prerequisite.

Check out: Make Money Not Excuses by Jean Chatzky

Raising the Bar on Salaries

2007-08-09T13:08:00.000-07:00

There’s been a lot of press lately derived from recent studies on the disparities of women’s status in the workplace. Focusing specifically on the difference in salaries between men and women in the same positions, it is still unsettling that it is still a man’s [work]world despite the number of women powering almost every area of employment in this country.

The speculations and reasons provided for some of these differences seem a little antiquated since they are clearly not in step with the changes in our society as a whole and households in particular. Women went out to work in large numbers during WWII. There was then a decline after the war when the stay-at-home mom was the norm. From around the ‘60s, the numbers of women going to work has been on a steady rise. It is now commonplace to hear that it is impossible for some families to maintain a regular middle-class lifestyle if only the “husband” worked. That translates into the full financial responsibility no longer resting on dad’s shoulders. Salaries therefore need to be reflective of this situation as the old family norms no longer hold.

Further, if we look at the single parent household headed by a female, it would make sense that she should make a higher salary than a male counterpart to reasonably support her family.

Another focus within studies is on salaries of college graduates who have the same degrees. The women, with the exception of some in the education fields, start off earning an estimated 10% less than the male graduates.

Where does this lead? To my belief if a woman is going to be employed, she should make strategic career moves to her benefit. This applies to cashiers and clerks as it does to typically high earning professional careers. I am not talking about initial basic survival which comes first, but the step above needing to put food on the table. Which employer offers the better comprehensive benefit plans, readily promotes qualified internal staff, offers highest wages for the field? This is about making the wisest decisions a woman can on her own behalf and on behalf of her family. With women raising their levels of their own value, more employers will learn to value all of their staff, not just the males.

This is one of the first steps to financial empowerment for women.
For detailed information on the subject read Behind the Gap, by the American Association of University Women