MoneyWiseWomen

Financial Literacy and Stress Awareness Month

I think it is wonderful that Financial Literacy Awareness Month and Stress Awareness Month are both in the month of April. I think it makes perfect sense because money is the number one source of stress in people today according to the APA’s Stress in America report. 

http://www.apa.org/news/press/releases/stress/index.aspx 

Money came in ahead of relationships, family, health, and job stability. In a recent poll on Stress 7 out of 10 people said they were “very stressed” about money. 

So how does the financial stress we are feeling affect our health? Stress can lead to health problems. It can affect your cellular level and if stress is long term it can lead to many illnesses.  Extreme stress or stress over long periods of time (called chronic stress) can damage your emotional and physical health. When was the last time you had trouble sleeping, struggled with tiredness, headaches, backaches, upset stomach or irritability? Did you know that these are all symptoms of chronic stress?  

Stress is also associated with high blood pressure and atherosclerosis which are both strong risk factors for stroke. One recent study of more than 20,000 people (57% were women) who had never had a stroke or heart disease found that stress was associated with an increased stroke risk, even after taking into account other stroke risk factors. 

Edward Yoon, M.D., cardiovascular disease specialist with Sutter Regional Medical Foundation & Sutter Solano Medical Center states in a recent article that a recent study called INTERHEART, published in the Lancet medical journal, collected information on thousands of heart attack patients in over 50 countries around the world. Researchers wanted to identify the most important risk factors that could predict a heart attack, and it was unique in its international scope. The usual risk factors were all present: high cholesterol, smoking, obesity, diabetes and high blood pressure were the major factors linked to heart attacks.

But one of the most interesting findings was that patients who reported high stress levels also had a higher risk of heart attack, even when the other factors were taken into account. The importance of stress was consistent across-the-board, in people from Africa, Europe, Asia and the United States, and seemed to be as important as high blood pressure.  

https://www.mylifestages.org/health/heart/ssmc3_stress.page 

I believe that we can use Stress Awareness and Financial Literacy Awareness month to learn that stress, when we do not deal with its source, can have harmful ramifications on our health. So much so that stress is a contributing risk factor to high blood pressure, stroke and heart disease. The link between stress and our physical health continues to be researched, but we do know that when we are stressed and do not deal with it, our physical body suffers. We also know that when we are stressed it can lead us to drink more, eat in an unhealthy manner, and smoke more; all of which are risk factors to high blood pressure, stroke and heart disease.  

I believe the best way to deal with stress is to learn stress management techniques and most importantly, to deal with whatever is causing the stress. If it is financial stress, identify the specific issue that is causing the stress, then deal with that specific issue or issues. Continuing to sweep it under the rug can have a very negative physical impact. 

Here are some sources to help get started on a life of less financial stress: 

If you are having problems identifying the source of your financial stress you can take a financial stress test: http://www.learnvest.com/2010/09/quiz-can-you-pass-a-financial-stress-test/ 

If you need help dealing with the specific financial issue causing you stress there are many resources you can utilize one of them is Money Management International: 

www.360financialliteracy.org

Money Management International provides everything needed to understand finances and where to go for additional assistance. The site includes a 30 day financial fitness path to follow. What better time to start than during Financial Literacy Awareness and Stress Awareness month? 

Make financial fitness a way of life. Take time each week to take care of your finances, listen to webinars on Money Wi$e Women Get Smart and make it a habit to start reading financial literature.  

Also visit the official website for Stress Relief Awareness Month http://stressawarenessmonth.com/sponsor/

Jayne Black

www.jayneblack.com

 

 

 

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.

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.

Go Red for Women Celebrates 10 Year Anniversary - Learn and Live!

The American Heart Association celebrated their 10 year anniversary of the Go Red for Women Movement on February 1, 2013! Hundreds of women across the nation wore red on that day to help create awareness about the fact that heart disease is the number one killer in women, causing 1 in 3 deaths each year. My heart goes out to everyone who has lost someone or knows someone who has heart disease.  It is important to also know that 80 percent of heart disease is preventable. How many diseases can we say that we have that much control over?

Should Adults Have an Allowance?

Many families teach children about money management and responsibility by offering them an allowance but what about adults, should they have one too?

An allowance (for those of privilege reading) is not an imaginary thing but rather a pre-set small sum of money a child receives regularly to spend on new toys, clothes, books or whatever. It could be a weekly, bi-weekly or monthly payment depending on how the parents set it up. Think of it as a trust fund, without the fund or all those extra zeros.

Allowances teach children to save and plan for purchases and form the foundation of a valuable life skill, one that many adults really need.

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.