MoneyWiseWomen

Graduates -- Learn to Live Financially Healthy

College (and high school) graduations are right around the corner, but perhaps the most important learning of all is still come – learning how to live financially healthy.   
 

1. Give Yourself a Spending Reality Check. Notice there’s no mention of “budget”? Budget reminds me of self-denial and regret, much like the word diet. A spending plan allows you to create your own personalized plan. This is perhaps the most important step for students who have relied on their parents and/or student loans to get them through school. We're a nation of spenders and we spend unconsciously. Begin by tracking your spending. Use a small notebook or blank checkbook register and write down everything you buy with cash, check, ATM card, debit card, and credit card for at least 14 days (30 days is better). Most people discover at least one thing they’re spending more on than they realized. Simply writing it down will likely prompt you to spend 10% - 20% less.
   

Invest in Yourself & Live Financially Independent

 

One of the most important things you can do to create a healthy financial life is invest regularly and automatically. If you’re not already investing, don’t wait another day. Don’t wait because time is not in your favor. Unfortunately women think we have to be perfect and know everything before we start to do anything. Simply investing $50 per month will help you create financial independence.

It’s important to understand the difference between savings and investing. Saving money won’t make you rich, but it will be there when you need it. Savings are when you put your money in checking accounts, savings accounts, certificate of deposits, money market accounts, U.S. Savings Bonds, etc. Investing involves more risk, but if you make good investment decisions, your investments will yield higher returns over time than savings. Investing is when you put your money in stocks, mutual funds, bonds, etc.

Commitment Self-Exam: Avoid Self Sabotage

Are you truly committed to making a change this year? If you answered yes, then avoid sabotaging your commitment to your goals by reviewing your habits and past behaviors. Examine your circumstances carefully to determine what part you played in the outcomes you have previously gotten. If you are not producing the results you desire, then figure out why. Be honest with yourself.

• Have you let external issues or others’ actions determine what happens?
• Are you spending time on situations/events/issues that (if you were working) would not have taken as long or even been issues at all?
• Have you held off planning a course of action to “wait and see” before you make a decision to do something? Why?
• What would happen if you simply made a decision to take action, make a commitment, and in the worst-case scenario, had to change your plans later?
• Are you able/willing to stay focused? If you are not, have you identified the barriers? What can you do about them?
• Are you willing to work long hours, weekends and holidays for a limited time to accomplish what you desire?

 

What other issues can you identify that have kept you from fully committing?

The $20 Christmas Gift that Can Change a Life

I have a great Christmas idea for the home improvement enthusiast on your list—the DIY Project Calculator for Dummies, available for under $20.00 at The Home Depot.

I know what you’re thinking. “How does a calculator change a person’s life?”

The project calculator doesn’t. But it’s the tangible thing you put in the box, along with instructions for the real life-changing present—directions to the online retirement calculator at www.choosetosave.org/ballpark

Create a Healthy Financial Life

I've been educating and empowering women to live financially healthy since I founded Money Wise Women eight years ago. We have only to examine a few statistics to understand why it’s important to get educated on financial issues and take action to get our finances in order:

• Women lose approximately 15 years from the workplace to take care of their children and parents resulting in fewer promotions, smaller paychecks and smaller pensions. It takes five years to make up for every year out of the workforce.
• According to one study an average caregiver loses $659,000 over a lifetime in reduced salary and benefits.
• Approximately 50% of first marriages end in divorce.
• Approximately 58% of marriages end with the husband’s death and the average age of widowhood is 56.
• According to the 2000 Census women are more than four times likely to be widowed than men.
• Women outlive men by an average of seven to ten years.
• 80% of widows living in poverty weren't poor before their husbands died

Escaping the Bag Lady Syndrome

A survey taken a couple of years ago found about half of the women interviewed were afraid they'll be a bag lady and that included women earning more than $100,000. Forbes magazine reports that being a bag ladyy is the most documented female money fear - anxiety about finding yourself suddenly destitute and on skid row. Tory Johnson, Women for Hire  recently posted this issue on her Facebook and blog and was overwhelmed with the response. If the bag lady fear lives in the back of your mind don't wait another day to take action. By developing an investment plan you can live financially independent later in life.

Can a Woman's Income Last a Lifetime?

Today's Money Wise Women Get Smart Teleseminar -- Can a Woman's Income Last a Lifetime was packed full of great information, resources, tools and statistics. Jayne Black, Plan Administrators, Iinc. shared three objectives: Own it: Take Possesion of Your Story; Know It: The Good, the Bad and the Ugly; Voice It: Verbalize Your Story and Advocate for Yourself. Below are several websites shared during the teleseminar:

• www.choosetosave.org/ballpark
• www.protectmyretirement.org
• www.wiserwomen.org

It's obvious Jayne Black is passionate about helping women and men be prepared for a prosperous retirement.

 

Listen to Can a Woman's Income Last a Lifetime -- http://AttendThisEvent.com/?eventid=14800809

 

Warmly,

Marcia Brixey

IRA Basics

 

Individual Retirement Accounts (IRA) are an excellent way to save for your retirement. Let’s look at some of the frequently asked questions about IRAs.

What’s a traditional IRA?
Anyone under age 70½ with earned income may contribute to a Traditional IRA, which may be tax deductible depending on your modified adjusted gross income and whether you or your spouse participate in a qualified retirement plan through your employer.  The earnings in your IRA are always tax deferred, which means you won’t pay taxes on the earnings until you receive a disbursement.  You must start taking distribution of a traditional IRA at age 70½ .

We Must Invest in Our Women -- Especially in Hard Times

Today's Seattle Times (October 10, 2010) had an Op Ed about Investing in our women especially in hard times. The authors said "As community members, we too must invest in women. Whether you choose to act with your wallet, your time, or both, your action will make a difference. The critical role that women play in maintaining our families and community demands that we identify solutions that will foster not only an equitable recovery, but also innovative long-term solutions for women and girls -- and ultimately for all of us."

Use Your Social Security Statement as a Guide

Once you reach age 25, the Social Security Administration (SSA) will send an annual report on your individual account. This report will highlight potential benefits from your account and is a valuable tool for your use when considering ways to plan for your retirement and other financial needs.