Listen to Sonia's radio interview with Diva Zone Magazine:
"Till Debt do us Part"
http://www.blogtalkradio.com/The-DIVA-Zone/2008/09/16/Real-DIVA-Talk
Women and Finance
What is stopping you from being wealthy?
Wealth, it is often said, starts with a state of mind. Many believe that part of the reason wealthy people stay wealthy is the way they think about-and handle-their money.
Following are some tips from the rich that can help you achieve financial independence.
Live below your means. Although the media portrays them differently, the majority of millionaires clip coupons and watch their pennies. According to The Millionaire Next Door, look in their closets and you'll find clothes bought on sale. Look at their driveways, and you'll find American-made cars from older model years. The main quality that determines whether or not you'll accumulate wealth? Frugality.
Create a budget. Rather than worrying about financial security, the wealthy tend to create a plan and take action. They know how much their family spends for food, clothing and shelter. So take your cue from the wealthy: Create a budget you can live with-and stick to it.
Plan for the future. Instead of spending it all, the average wealthy person invests nearly 20 percent of household income in stocks and mutual funds. The wealthy also know the value of life insurance (five to seven times their annual income), credit cards without revolving debt, and emergency money. You should too.
Cut your tax bill. You don't need a private accountant to learn this trick: Reduce your taxable income though retirement savings plans. In addition to helping you to accumulate wealth, an IRA or 401(k) allows you to shrink your tax bill. So sock away as much as you can in tax-advantaged vehicles.
Don't panic. Over time, the stock market remains a wealth-builder's best friend. Millionaires and financial experts agree that regular, consistent contributions to the investment of your choice-whether the market is up or down-is still one of the number one ways to accumulate wealth.
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Are you a Financially Empowered Women?
One of the most common false impressions in this society is that higher levels of income automatically translate to greater levels of prosperity. This fallacy couldn't be further from the truth. In actuality, the real truth is, the more money we make the more money we spend. In fact most people spend 10% more than they make each year.
As a financial money coach, I hear it all the time." I don't make enough money to invest; I can barely pay the bills ontime." These words are often spoken by six figure wage earners.
So what does a Financially Empowered Women look like?
12 common characteristics of a Financially Empowered Women
She says, NO to a new pair of stilettos on sale. She lives in a modest home and has built up substantial equity. She starts a college fund for her children when they are infants. She has a 401K and an IRA, and contributes the maximum amount regularly. She prepares meals instead of dining out three or four times a week. She is a risk taker and has investments in stocks, mutual funds and real estate. She saves and budgets for yearly vacations, and pays cash rather than charge it to a high interest credit card to be paid off in installments. She pays off her credit cards in full each month. The only debt she has is her mortgage and she adds extra payments to it each month. Part of her personal financial plan is to pay it off in 8 to10 years. She has an emergency fund of six to nine months set aside in a high interest money market account. She has adequate health, life, disability, and home insurance. If she is in a relationship, she is fully involved in all money management decisions and has a thorough understanding of the wealth building process.
We all want to feel empowered to make spending choices. Frequently I hear, "I deserve this new outfit, after all, I work hard for the money." This is often an excuse or justification to spend more than we make. The problem with this thinking is that it often leads to financial management confusion and a displacement of your financial goals.
Having a spending and savings plan will not take away your ability to make personal money choices; it will create clarity so you can make more informed decisions with your hard earned paycheck.
Achieving financial freedom will ultimately depend on your commitment to consistently applying financial management principles.
Do you want to build a comfortable worry free retirement?
Begin controlling your future today by initiating a sound financial plan to meet your objectives.
The Money Excuses we make!
I recently attended a women's seminar in Atlanta, Georgia.
Jean Chaskey was the keynote speaker. Jean is an award-winning journalist and bestselling author and motivational speaker. She is the feature money coach on Ophrah's Debt Diet. Her latest book titled Make Money Not Excuses is right on target.
As a money coach for women, I have heard a number of reasons why women don't take control of their finances.
To name a few:
"I'm too busy, I don't have time for that." Yes, we are all too busy, this is true especially for single moms. But somehow we find the time to eat out, shop, and get our hair and nails done. A good friend of mine, who recently quoted that statement, called me from a jewelry shop trying to decide what bracelet she was going to buy to match her new dancing outfit. This same friend has no emergency account and no IRA's. "I don't make enough money to invest." It's not how much you make, its how much you keep. When it comes to saving money a little goes a long way. Just imagine saving just $5.00 per day for a year. Do the math. That's $1,825.00 per year. That's the perfect start to a retirement account.
"I'm in too much debt, and I'm depressed."
The reason you may be depressed could be related to your ever increasing debt. Your debt will not go away by ignoring it. It is so much easier to pretend that it doesn't exist, to wonder how you got yourself into this mess and to hope that it will go away without any effort on your part. Acknowledging this problem is a start. WORKING ON A SOLUTION IS STEP TWO. There are many ways to deal with consumer credit card debt but the most successful plan is called snowballing created by Dave Ramsey.
"My husband takes care of money decisions." Ok ladies, what's wrong with this picture? The first question you need to ask yourself is, WHY? Is it because you feel that he is a better manager than you or is it because he feels he is a better manager than YOU? Either way, you must be involved with the household money management decisions. Being in the dark about what you owe, what you own, and your retirement future, is not a safe place to be. Remember the statistics, "you are probably going to outlive your husband," and you don't want to end up in a panic because you have no clue about your finances or insurance. The time to learn is now, not when you are forced into learning due to a divorce or death.
Making excuses for the lack of money skills won't make you rich, but it will most certainly keep you at the status quo level or worse. Why set these learning restrictions on yourself when it concerns your money or anything else in life for that matter.
. Taking Control of your Finances
It is critical that women of today educate themselves on the basics of personal financial management. Gone are the days of depending on your spouse to handle all the financial decisions in your household. There are many reasons that women need to take control of their finances.
Recent statistics state that women will outlive men by approximately 7 or more years. On average women still earn less than men and the possibility of a future pension for retirement is out of the question for most women due to work leave of absences for child rearing and care of an elderly parent.
At some point in our lives women will be responsible for handling the finances, due to a divorce or death of a spouse. Up to fifty per cent of marriages end up in divorce and women may not realize the financial impact of these circumstances and how it can severely affect the quality of their life and children.
Ask yourself, are you prepared to handle the family finances should you end up alone? If not, this is the time to become financially savvy. Women need not be intimidated in the world of finance today. By learning the basics of managing money you will be empowered to analyze your current situation and begin to make changes to enhance your future. If you are still living paycheck to paycheck and are unsure of your financial and retirement goals Enrichment Financial Coaching can help. Now is the time to assess where you and your family stand financially. There are several books, articles, and internet sites that can help to educate you on the subject of financial management for women but this can be overwhelming to most beginners. And when people are overwhelmed they procrastinate instead of plan. Enrichment Financial Coaching takes the time to address your financial concerns by providing one on one coaching, guidance and inspiration that will empower you to make the best financial decisions possible to reach your financial goals.
Taking small baby steps in the learning process is better than doing nothing at all. Our workshops and coaching provide educational experiences that will strengthen your morale and give you the confidence you need to make informed decisions about your money.
