MoneyWiseWomen

A Financial Minute with Jenifer: And Now, The News

I'm curious - how do you stay financially informed? Some people make it a habit to read the financial section of the paper daily, almost religiously. Some people rely on others to tell them what to think, like their planners, accountants, heck, even their coaches! Some rely on the kindness of strangers - the ones with the seminars and software guaranteeing your financial survival.

A Financial Minute with Jenifer: What, Me Worry?

As you can imagine, people show up at my figurative door hoping to find relief from financial worry. Their situations vary, from the somewhat minor to the very grave, but my clients all come with worry, nonetheless.

A Financial Minute with Jenifer: A Day Late . . .

..., and a few dollars short after a trip to Phoenix with my husband to visit our granddaughter.

Have you ever found yourself pampering someone in a way that didn't support you financially? The first thing that usually happens is the justification of why we're doing it. We typically start our rationalization by making it about the other person, instead of acknowledging what we're getting out of it at the same time.

A Financial Minute with Jenifer: How Do You Do It?

Manage the family checkbook, that is. Do you have joint accounts or separate? Do you each manage the bills or does it fall to just one of you? Bottom line, are you at all stuck doing it in a way that doesn't really support you?

It may surprise you to know that my husband, Les, and I went through no less than four incarnations of how we ran our day-to-day finances before we found what worked. First we tried operating out of one checkbook - what a disaster! We each knew what was coming in, but had different ideas about what needed to go out, and constantly collided as a result.

A Financial Minute with Jenifer: Courage to Change

I recently returned from New York City, and no other place has more power to remind me of how much I have changed my financial identity.

I lived there twenty-five years ago, and couldn't have been more financially uncertain than I was at that time.

To be back in New York and have gone from being a "starving artist" to an expert in financial behavior is a powerful reminder of how possible it is to change one's identity. It didn't happen overnight, and there were plenty of challenges along the way, but one minute at a time, one choice at a time, and one day at a time, my new reality surfaced.

A Financial Minute with Jenifer: Forsaking All Others

When is financial infidelity a good idea? How about never? Now before you go looking for exceptions to this bold assertion, let me clarify what I mean--and don't mean--by the term.

Financial infidelity doesn't mean the odd occasion where you neglect to inform your partner of a purchase. What it means is intentionally sneaking around, lying about, and avoiding what concerns you financially. In short, it includes any behavior that is unfaithful to the principles with money to which you have jointly committed. And it's never a good idea.

A Financial Minute with Jenifer: Your Money Match

Our couple's conversation continues with a focus on financial compatibility. Financial compatibility means the ability to be balanced and agreeable with each other when it comes to your money.

Sounds simple, right? As always, I acknowledge that simple doesn't always mean easy. You may have entered into your present relationship with no sense of financial balance, and now find yourselves financially opposed and stressfully at odds. On the other hand, you may have been in agreement with your partner from the get-go on your financial goals, but have gotten away from communicating it gracefully and respectfully.

A Financial Minute with Jenifer: The Rebuff

We talked in the last post about proposing a financial relationship with your partner that is based on making things right with your money without making each other wrong in the process, and what to do if you've gotten a "yes." Today we're focused on what to do if your partner won't cooperate.

A Financial Minute with Jenifer: The Proposal

I've been having a lot of great conversations with couples lately about how to stop fighting over money and get back to a loving relationship, so I thought we'd spend some time sharing the distinctions that are helping them make love--and money--last. (By the way, these principles apply to any partnership, business or personal, where there is money at stake; so don't hesitate to read this through that “lens.”)

What to do with your stimulus package check?

By Karen Ramsey

After much talk and anticipation, here come those stimulus package checks!

A Financial Minute with Jenifer: Great Expectations

Great Expectations was a video dating service that was popular when I was in the industry. My service promoted a more personalized process. Many clients told me that while physical attraction was necessary, it was more important that they "fit" with their partners on other levels.

Great expectations were also what my clients brought as they searched for the love of their life - greatly unrealistic expectations, in many cases.

An interesting thing happened when these people stood up for what they really wanted. They sometimes forgot about how they needed to change because they were so focused on what should come from the other person. What we learned was, while it's okay to have your eye on the prize, you can't ignore what you bring to the table.

Start Investing – NOW! Don’t Wait Until It’s Too Late!

One of the most important things women can do to ensure their financial fitness is to just start investing – now! Don’t wait because time is not in your favor. And, women think we have to be perfect and know everything before we start to do anything. Many people think you need a lot to start investing, but you can invest as a little as $10.00 per week.

Saving for College

Since State Farm* has entered into the field of financial services, I'm talking with more families about planning for the future. While families almost always want to talk about retirement, their most immediate concern is saving for their children's college education.

This is wise. College education will, in most cases, be a family's second largest expense after home ownership, so it deserves careful planning. rising college costs make saving even more important.

A Financial Minute with Jenifer: The Right Stuff

Boy, we financial people sure can be bossy sometimes, always telling you how to change your money management skills to improve your life. Honestly, even I get tired sometimes of reading the never-ending parade of financial “how-to's.”

So I thought today should be a celebration of all the things you've done right financially. No matter where you are, and what you wish to change, I know there are things with your money that you've done well. But chances are, if you're not where you want to be yet, you probably haven't given yourself a lot of credit for the little financial victories you've experienced along the way.

A Financial Minute with Jenifer: Financial Attraction

The movie “The Secret” created quite a buzz because it teaches how to enjoy more of anything you could want in your life, including money, by employing the laws of attraction and opening yourself up to greater possibilities than ever.

“Attraction rather than promotion” is not a new concept--twelve-step programs have been employing it for decades with great success. But it isn't one of the more common strategies in terms of wealth accumulation; the more traditional messages tend to focus more on what we're after--the right funds or returns for instance--than on what riches we can draw to us.

A Financial Minute with Jenifer: Deal or No Deal

I recently found myself somewhat tortured over the details of a new business venture, and was letting my uncertainty get in the way of making a decision. I had been approaching the deal from a surprisingly black and white perspective, which is not in character for me, and was feeling increasingly anxious as a result.

Since high anxiety is no longer a comfortable state for me, I decided it was time to get some perspective from someone so removed from my situation that I knew I'd be getting an objective point of view.

Understanding Financial Terms & Concepts

Learning to develop sound financial skills takes time. It's not going to happen overnight. Remember when you were in school and took a foregin language class? Did you learn to be proficient and literate in one lesson? No, you probably took classes for at least three years. It takes time, studying and practice to learn, whether it's a foreign language or financial fitness. Some terms and concepts you've probably heard about but may not understand include:

• Dollar Cost Averaging – you invest a fixed amount of money on a regular schedule. The amount can be $10, $25, $50, $100 or more.  You don’t need a large sum of money.  The most important thing is that you invest the same amount regularly and don’t wait to start. Time is not your friend when it comes to investing. Don’t pay attention to the price of the investments at the time. Your monthly investment will purchase more shares when the prices are low. Many people are in a panic because of what's been happening in the stock market. Instead of being in a panic  -- think of it as a sale, you get more for your money when the prices are low. Dollar cost averaging doesn’t automatically make a profit. However, if you invest on a regular schedule and stick to it you will probably do better than the investor who tries to time the market to purchase low and sell high.

A Financial Minute with Jenifer: Free to Be

As I work my way around the country, I ask people, "What do you want money to bring you?" and invariably someone says "Freedom."  When pressed for details, they usually explain, "The freedom to go where I want, when I want."

A Financial Minute with Jenifer: How Much Is Enough?

When I was in the financial planning industry, people asked me this a lot, especially regarding their earnings, and how much to save for emergencies and retirement. They wanted me to tell them where they should be, because they hadn't examined it for themselves.

When talking about income, a client once told me, "I need to make $100,000." I asked her why. She said, "Because it will tell others I've made it, that I'm a successful business woman." "But what if your perfect life costs $64,789.32 a year?", I asked. She gave me that tilted look my German Shepherds sometimes do.

Creating a Healthy Financial Life

The January Issue of the Chief Learning Officer magazine states that Financial Education Could be the New Employee Assistance. It says 70% of Americans live paycheck to paycheck and USA Today cites concern about personal finances as the number one cause of stress on the job. Does this resonate with you?

Are you ready to create a healthy financial life for yourself and your family? You don’t have to do everything all at once. It’s really all about taking one step at a time. But, if you don’t take the first step you’ll never reach your goal. And, everyone’s goals are different. The goals I have today are much different than the goals I had when I began getting my financial act together. What’s most important is to get started and get started today because time is not our friend when we procrastinate. I’m going to share a few steps with you:

A Financial Minute with Jenifer: Who Do You Need To Be?

Many professionals I meet, when they discover I'm a Financial Success Coach, will ask me, "What do I need to do to make more money?"

I have the distinct pleasure of coaching some very high earners, and rather than ask how much more they need to do to meet their financial goals, they focus on who they need to be - what areas of their personality they need to develop or change to reach greater levels of accomplishment.

A Financial Minute with Jenifer: It's not Business, it's Personal!

And therein, sometimes, lies the problem.  More people than ever have entered the ranks of the self-employed, so it seems everyone we know has a business of some kind. With that comes a certain expectation on their part that if you’re a friend, that you will also be a client.

Not wanting to stand in the way of their success, we often do so without asking the questions we would if we didn't know them. This shifts us from doing business by reputation to business by obligation. 

A Financial Minute with Jenifer: OM

Chanting. Meditation. Prayer. All over the world, people are lifting their voices and thoughts to the heavens to raise their consciousness, improve their circumstances and be of better service. Somewhere inside, they believe they are meant for more than their struggles may point to. When that internal confidence is at its strongest, so, too, are the results.

It is important to create a physical environment of financial success; today, we will build the internal environment - the mental focus you need to accomplish your goals.

We’re going to develop a more specific, guiding "Money Mantra", a statement of purpose, intention or belief that supports you in your financial endeavors.

Have you thought about your credit card rewards lately?

By Karen Ramsey

There it is. Without fail, sitting in your mailbox, lurking, waiting. (Imagine scary movie theme music playing.) It’s your monthly credit card statement!

A Financial Minute with Jenifer: What would you ask if there was no shame in asking?

Many of the people I coach tell me that their financial challenges come from not having been taught much as children about how money works. Consequently, as adults, they find themselves holding back from asking detailed questions about what impacts their financial life, because they’re too embarrassed or ashamed to admit they don’t know the answers. So they’re feeling around in the dark, hoping it will all work out. Problem is, it usually doesn’t.

A Financial Minute with Jenifer: The Big Easy

Financial decision, that is. I have recently become fascinated with what people do with their money when presented with several opportunities to improve their circumstances.

Some jump right in to take advantage of the thing that shows the most promise for moving them along the quickest.

Some go to the place of semi-commitment, willing to spend time as long as there's an obvious exit plan.

And some won't commit at all. And that doesn't make them bad, just interesting to watch when the other options don't ask that much of them to begin with.

A Financial Minute with Jenifer: Pennies From Heaven

We spend a lot of time talking about cutting expenses and increasing income; let's also talk about growing our savings in a wonderfully unique way.

I met a woman recently who talked about having a savings account that was funded by what she called "unexpected income."  That included unforeseen refunds or rebates and money she saved when someone else picked up the check for a meal.

I was fascinated by this prospect, and as a result, would like to ask you to experiment with how much you can save over the next ninety days through your unexpected financial rewards.

A Financial Minute with Jenifer: Once Upon A Time...

What would you guess has the biggest influence on a person's ability to succeed financially? Education? Social advantage? The right job?

None of the above. It's our 'money story'; what we tell ourselves is financially possible. Everyone's got one  - the people who are winning the money game have a version in their heads that has a happy ending!

A Financial Minute with Jenifer: How Dare They!?!

One of the commercials for the Chrysler Town & Country mini-van tells the story of a woman who goes on a shopping spree, and hides all her purchases in the ever-present cargo holds in the van, because she can’t admit to her husband what she’s shopped for.

My initial reaction to the ad was one of pure indignance;  I wondered how they dared to label women that way.  When I thought more about it, what frustrated me more was that this was only one example of financial infidelity—the practice itself is still so prevalent that it easily makes for this kind of advertising fodder.

A Financial Minute with Jenifer - ROI

A buzz word of the financial industry, it means “return on investment,” and is definitely something to consider before committing to any venture.

That being said, there are few investments that come with any guaranteed ROI, so how do you choose the ones in which to put your trust?

Some would suggest that you start by researching the investment to calculate reasonable expectations of return based on its past performance. I say you need to back up at least two steps before that one to be sure you're making the soundest decision you can.

A Financial Minute with Jenifer: The New Economy

I was working on an article about different ways to increase your income and decrease your expenses, and got very excited about the creative ways we can get our financial needs met. In the face of the challenges of our economy, we have revived the practice of trade and barter; methods which can go a long way in filling in the blanks of your budget.

These are the differences, as I see them:

A Financial Minute with Jenifer: The Art of Happiness

In reading “The Art of Happiness,” by H.H. The Dalai Lama, I was reminded of the distinction between happiness and pleasure. True happiness is something we cultivate from within, and therefore it brings a deeper sense of satisfaction. Pleasure is fleeting, and, by that nature, feels like something we need to repeatedly chase in order to experience it.

That's not to say that pleasure is necessarily a bad thing, but it is a danger when the pursuit of it runs our financial lives, when we literally buy into material things as a substitute for getting in touch with what really makes us happy.

A Financial Minute with Jenifer: A Second Chance...To Make A First Impression

How do you recover from big mistakes with money and make a new future? We've talked about our money "stories"—the information we have about how money works,  and the identity with money we create. Some people live their whole lives with these stories without a lot of drama. But, what if your role in that story has brought you less than happy endings?

I've had my share of those experiences. A business loss of many years ago was something I alternately chalked up to other people's misdeeds or the price of playing big. There was some truth to those statements, but the bigger truth was that I didn't ask for help soon enough. Too much of my story was about saving face, pretending to know more than I did. 

Playing the Lottery or Investing in the Stock Market: Which is the Bigger Gamble?

By Karen Ramsey

Oh the things you could do if you won a million dollar lottery jackpot! Luxury vacations! New cars! Early retirement! The dreams of how to spend the potential windfall of a lottery jackpot are themselves almost worth the price of the $1 ticket. For most people, unfortunately, dreams end up being the only thing that a lottery ticket purchase affords them. Reality gives way to the long odds of the lottery. Rare is the opportunity to stand in front of a crowd of flashing cameras while holding a giant cardboard novelty check filled with dollar signs and zeros. How rare is it?

Simplify your Christmas

“Last year I woke up the day after Christmas and I was so tired I just wanted to cry.”—A young mother of two from Boston (excerpted from the book, “Simplify your Christmas” by Elaine St. James)

Do you have a hunch this might be your experience this Christmas season?

Are you already feeling the weight of exhaustion with a mounting list of things to get done?

Are you anxious about your bank account as you slide your credit card through the machine to charge just one more “must get” Christmas gift?

What would it mean to simplify your Christmas?

A Financial Minute with Jenifer: The Cost of Saying 'No'

How do you know when not to say 'no' to a financial investment in your personal development?

Some people invest in themselves based on how much money they think they can afford to spend or lose. Some say 'yes' as long as the options fall within a certain price range; others throw caution to the wind and hope the decision turns out for the best.

But how about developing a personal growth budget by starting from an exceptionally well-defined outcome?

A Financial Minute with Jenifer: Your Gift to You

This Financial Minute tip is about giving yourself the gift of a little holiday peace.

Many of you may have spent more money on the holidays than you think you should have, and are feeling some guilt and anxiety over it.

So my advice today, if that’s the case for you, is to try not to beat yourself up too much over it — it is what it is — but do decide what to do about it for the future.

Decide today how you will change things for next year . . .

Give Your Grandchildren the Gift of Life

When you are trying to choose just the right gift for your grandchildren, you can have a tough time sifting through the newest trends and fads. Last week it was this pop star, next week it may be a new cartoon character. On top of that, you don't want to get something that won't last 10 minutes out of the package.

Save Childcare Money For Your Child's Future

The cost of childcare for preschool age children can be one of the more significant expenses parents face. While childcare expense may be unavoidable in two-income households, it can represent a significant increase in discretionary income once the child begins elementary school.

Future Dreams Take Financial Planning

I have never met a mom wno wasn't working--or any other woman, for that matter. More than ever before, women are handling their own or their family's finances. It's not about what you have; it's what you do with it to secure your future.

We all have unique needs and resources, but everyone wants to protect what they've worked so hard to acquire. It's all about taking what you have, making the most of it, and building a solid financial future that is uniquely yours.

Give Yourself the Gift of a Debt-Free Holiday Season

Now’s the time to sit down and plan how you’re going to get through the holiday season without a pile of debt. I’m going to give you some tips for a stress and debt free holiday season.

If you’re like me and buys gifts year round and tucks them away – pull out the gifts and go through them. If you don’t check out what you’ve already bought, you may end up buying another gift you don’t need. Trust me on this one – I’ve done it more than once!

Financial Literacy: Survey finds young adults are optimistic about their financial future

Financial Literacy:
Survey finds young adults are optimistic about their financial future

How confident are you about your financial future?  A recent report detailing the State of America’s Financial Education (SAFE) shows two-thirds of young adults and recent graduates are optimistic about their financial outlook despite the country’s economic difficulties and their present state of financial readiness. 

Life Insurance: Plan Today for the Unexpected Tomorrow

Life insurance is a practical way to protect your family's financial hopes and dreams, yet millions of Americans have no life insurance coverage. In fact, only 61 percent of adult Americans had life insurance protection--a decline from 70 percent in 1984. Only 41 percent have individual policies, while others depend upon group insurance, leaving them underinsured as well as vulnerable to being uninsured if they lose their job.

Top 10 Reasons Women Experience Money Malfunctions

I recently read some alarming statistics about women and money:

• More women file for bankruptcy than graduate from college.
• Only 35% of women have some sort of retirement account.
• The median debt for women has doubled in recent years.
• 40% of the average women’s income goes to service mortgage debt.
• Up to 90% of women will be responsible for their own finances at some point.
• Average age of widowhood is 56 years.

Why are there so many women who don’t have their financial act together?

Seven Strategies for Saving

Are you doing your best to save for your future? It can be very challenging to begin a savings program. After necessities such as food, clothing, and housing, there can be little left to put aside for future goals.

Unfortunately, failing to save could mean the difference between enjoying a comfortable retirement and giving up some basic needs. Often it is a matter of making the decision to begin saving now in order to buy a new home or car later. The goals you set are important to you. Making changes to prepare for those goals can make a difference.

For that reason, State Farm(R) has taken a look at various ways to get a person's savings plan on track. We've come up with seven strategies that you can use today.

3 Types of Income

3 Types of Income for Financial Freedom

There are 3 types of income and you need all three to be financially free!

1)  Linear income

2)  Residual income

3)  Passive income

Linear income is the income you earn from a “job”.  Do a “job” and receive income for that work. You must have more than one income however to become financially free. 

Everyone needs multiple streams of income, because one stream of income is not enough to be financially free and in case one or two stop coming in for any reason, you still have other income coming in to meet your needs.

So to have multiple streams of income with linear income, you would need at least one other job. But you can only work so many hours in a day.  Even if you are paid $1,000 an hour, when you quit working to sleep and eat, you quit earning money.  Working a job for money is referred to as “trading time for dollars”. 

You will never become financially free from working a job.  You must have your money working for you with multiple residual and passive income sources.

Subprime Mortgages 101

By Karen Ramsey

Subprime mortgage lending has been a popular topic in the news lately. It’s even been discussed in our own Money Wise Women blog (see “A Womans Lifetime Lender - Protecting Women and Their Families” by Marcia Rodriguez). So I thought I would provide a little background on what Subprime mortgages are and why they are in the news.

Financial Tip -- Change Your Financial Situation

There are two ways to change your financial situation -- earn more or spend less. In other words, you can increase your income or reduce your spending. Increasing your income may be much more difficult to achieve than reducing your spending.

Carry a small notebook or blank checkbook register to track your spending for 30 days. Write down everything you buy, how much you spent and what you bought. Include the purchases made with cash, ATM car, check, debit card, credit card, etc. After 30 days review your spending to see where you can plug the holes. Most people find something they're spending more money on than they realized.

Warmly,
Marcia