Learn from Your Mistakes

“Learn from yesterday, live for today, hope for tomorrow.” – Albert Einstein

When it comes to your finances, it’s important to learn from your mistakes. When you learn from your mistakes, you will find yourself better off and more able to ‘live for today’ and have ‘hope for tomorrow’.

We should all learn from the past; especially from the financial mistakes we have made in the past. We certainly don’t want to make the same mistakes again. Don’t spend your entire life re-evaluating these mistakes; they’re over and done with, and all you can do is learn from those financial mistakes.

Enjoy the day you’re living in. Think of each new day as a new adventure — a new life. Tell yourself that it’s going to be the best day of your life. One of the major afflictions in life is that many women put off their financial problems. However, putting those issues off will only mean that they will resurface later. Remember that today is the most important day of your life. Learn from your mistakes; fix them today so you don’t have to fret about the future.

Life is full of problems pertaining to the future: financial problems, worries over your health, and worries about getting old. Some of these will come to pass (such as growing old), but many of them will not manifest past worrying. Force yourself to remain optimistic about the future. Never lose hope; set financial goals for yourself and strive to accomplish them. It makes you optimistic and gives you faith in your financial future.

Source: Parker, Learn from Yesterday, Live for Today, Hope for Tomorrow

Financially Savvy Women have the wealth they deserve

5 Myths about Women and Wealth

There are several myths about women and wealth that you might not be aware of. Below are the top five myths about women and money:

  1. Women are not good at math: Nature, not nurture, accounts for the gap in math skills. However, there is a growing movement to expose more women to learning and mentoring opportunities in the fields of math, engineering, finance, and science.
  2. Women are impulsive spenders: Money is an equal-opportunity, all purpose mood changer. Just as many men impulsively spend and overshop as women. One major difference is how society labels it. Women overshop; men collect, a term that gives the activity an intellectual cast. However the underlying impulse behavior is the same.
  3. Women are too emotional to invest wisely: Female investors outperform men in the long run. Men try to compete with the market and chase returns, leading to more frequent trading and high transaction costs. Women take a long time to make an initial investment decision; they are committed to the decision in the long run. Women are less reactive to short term changes in the market, trade less frequently than men, and realize better long-term investment performance as a result.
  4. Women would rather let men manage the family finances: Women are the chief financial officers of their households in 66 out of 100 homes (2010 Women and Affluence Study by Women & Co.). Women in the ultra high net worth market reported they play a high to moderate role in the management of the family’s assets. When it comes to retirement, 90 percent of women participate in decisions that affect their household’s retirement and investment accounts.
  5. Women are not interested in wealth management: The gender gap in finance is diminishing as women enter the field. Advising clients lends itself to a woman’s strengths in relationship building and communication, allowing female advisors to have the opportunity to outperform men. Organizations like Directions for Women and The Female Affect offer forums and networking opportunities to facilitate the advancement of women in financial services.

Kingsbury, How to Give Financial Advice to Women

Understanding these myths will help you overcome and fears that you may have had when it comes to managing your finances. Do you know of any other myths about women and their wealth? Please let us know what you think by posting your comments on our Financially Savvy Women Fanpage.

 

Woman reading stock quotes from WSJ.

Ways Women can become Engaged in their Financial Life

Some women handle their money brilliantly all the time- in a perfect world. It is crucial to be connected with your finances. However, most of us are in dark about our finances for reasons like misunderstanding terms or not being involved enough. Luckily, there is always time for you to become engaged. The tips below will help you become involved with your personal finances:

  • Do you let your husband or partner manage money without your involvement? Change happens all the time in relationships, don’t start learning about your finances while you are in shock.
  • Do not sign your joint income tax return without reading it. Make sure you understand and thoroughly read your income tax return. If you need to, consult a professional; but don’t rush into signing anything.
  • Do you use your husband’s financial advisor, even if you don’t really like him, know him, or can’t stand him? At your next meeting with your Advisor, ask yourself how much YOU were engaged in the conversation. If not, consult with your partner and try to find an Advisor both of you can be engaged with.
  • Ask for confusing terms to be explained. Don’t let uncertainty and being uncomfortable get in the way of understanding your finances.
  • Not taking enough risk. We women tend to be more against taking risks. Women live longer lives; we retire with two-thirds the retirement savings of men. This calls for greater risk taking to earn a higher return. Many women HAVE to push themselves to do this.
  • Not seeing your money as a means to express your values. Value is defined as a person’s principles or standards of behavior. Many women express their values through the products they buy, the way they spend their time, and the companies they work for. However, few women view their investments as a tool for expressing value. Today, the new industry can represent a way for women to have their money work at more than just earning a financial return.

It is time for you to become engaged and find success in your finances! Take control now! Did you find this email helpful? I’d love to hear from you, please post feedback to Financially Savvy Women Fanpage.

 

Renting Vs. Buying a Home

It is time for you to look for a new home! Where do you start?

Start by defining you goals. Consider where you want to live, the features and amenities you are looking for, what you can afford, and a realistic date for having the money you will need.  Another decision you will consider is whether you are renting or buying your home. Purchasing a home is a huge investment; you will need to take the time to weigh the benefits of renting versus buying a home.

 

Renting Your Home Buying Your Home
  • The initial cost of renting is usually lower than making a down payment on a house
  • You probably will not pay property taxes and upkeep directly
  • With no money tied up in real estate, you should have more savings to invest
  • You run no risk that the value of your property will go down
  •  You can deduct the interest on your mortgage and your local property taxes on your tax return
  • You build equity as you pay off your mortgage
  • You may be able to borrow against your equity and deduct the interest payments on the loan
  • Your house may increase in value and you may make a profit should you decide to sell

 

Source: Morris, A Woman’s Guide to Personal Finance

Women Make Better Investments

A seven-year study found single female investors outperformed single male investors by 2.3 percent, female investment groups outperformed male counterparts by 4.6 percent and women overall outperformed by 1.4 percent.

Why? The short answer is overconfidence. Men trade more, and the more you trade, typically the more you lose — not to mention running up transaction costs.

Source: http://www.washingtonpost.com/business/behavioral-economics-show-that-women-tend-to-make-better-investments-than-men/2013/10/10/5347f40e-2d50-11e3-97a3-ff2758228523_story.html

It’s Not All About Money

Women are usually not taught the secret wisdom of creating wealth and exercising power. Studies reveal that the sexes view money and power very differently. A man’s self-esteem comes from his achievements and power is the ultimate goal. A woman gains her self esteem from relationships; power is a means to an end.

Men desire the respect of the office place while women yearn for the opportunity to help others, grow personally, and live genuinely. Women tend to fear power. This fear of power is a fear of finding out who they really are and fulfilling their purpose in life in the biggest way possible.

The word power comes from the Latin word, potere (‘to be able’) and means the great or marked ability to do or act. This definition can be interpreted in many different ways, especially between the genders. How do you define power as a woman? Through business success, money, or a successful relationship? Do you think power hinders or strengthens your success in life?

Embrace Your Power

To all of the Baby Boomer Women out there… you have the world’s attention.
You control a net worth of $19 trillion dollars and own more than three-fourths of the nation’s financial wealth. You have ben called the “healthiest, wealthiest and most active generation of women in history.” Once bills are out of the way and your children have launched their own households, you are spending 2.5x more than what the average person spends. You have taken control and trust me are harnessing the role of primary buyer of the home.
With this power comes responsibility to both yourself and your family. Stay educated and ahead of the game, because as long as you do, the world will continue to listen and cater to your requests.

Why are Women Prospering, even in Slow Economic Times?

Even through tough times, people will always be prospering. Why?

Women are finding new jobs, negotiating raises, winning promotions, multiplying their client base, and making more money than ever before. Just because the economy may not be doing well, it does not mean that you have to go down along with it. Do not use tough times as an excuse not to look for new opportunities. Instead, use the slumping economy as a way to create new strategies and explore different options, and most importantly, concentrate on your value. Value is your principles or standards of behavior. Once you define what your value is, your eyes will be open to new and profitable possibilities.

Source: Stanny, Stanny’s Law of a Lousy Economy

You Too Can Be a Courageous Woman

Being wealthy and financially engaged takes courage. For many women, their fear of facing their financial affairs only comes to light after experiencing a personal life crisis, divorce, and loss of a spouse or involuntary retirement. At that point your actions are more about survival. It takes courage to weed through the emotional aspects of challenging life events but your lack of financial knowledge only exacerbates an already stressful situation.
True courage is when a woman proactively decides to take charge of her financial affairs especially when life is Good. Courage is when a woman voluntarily becomes more engaged in the process of managing her money asking questions even if it makes her feel stupid. Courage is when a woman becomes aware of what she spends and what she needs before a crisis occurs to prompt her into action.

Proactively Manage your Money

What role do you want your money to play in your life? As a natural multi-tasker, you must incorporate a process or routine that allows you to proactively manage your money so that no stone is left unturned and nothing falls through the cracks. Just as we create routines and a process in other areas of life, we must do the same with our money.

checkbook

But the reality is there are many aspects to consider when managing your wealth. You’ve got your investments (stocks, bonds, mutual funds), insurance (life insurance, long term care, mortgages), lending issues, and estate planning. At times, it managing your wealth can feel overwhelming. That is why it is important to break everything down into a manageable system that works for you.