A Master Class in Wealth Creation…Based on Kick-Ass Quotes

Written by Barbara Huson

I love quotes. These tiny bits of timeless wisdom convey vast amounts of knowledge in a mere sentence or two.

This week, I’ve boiled down the secrets to successful investing into a series of pithy expert sayings. Consider it a Master Class in wealth creation.

Let’s start with economist Jeremy Siegel, “Fear incites human action far more urgently than does the impressive weight of historical evidence.”

Financial decisions made from fear (vs knowledge) never turn out well. As history reveals, after every crash, the market eventually surges. Yet fear has us selling at a loss, missing future gains.

According to wealthy industrialist J. Paul Getty, fear can be a buy signal. “Buy when everyone else is selling and hold until everyone else is buying.”

That’s not just a catchy slogan. It’s the very essence of successful investing.

Baron Rothschild was even more succinct: “The time to buy is when there’s blood in the streets.”

Our biggest risk is not the market tanking, but our emotional reaction.

As acclaimed investor Benjamin Graham pointed out: “The investor’s chief problem — and even his worst enemy — is likely to be himself.”

Women Are Different Than Men

Written by Barbara Huson

When it comes to women investing, I’m reminded of a quote attributed to Einstein: “If you ask a fish to climb a tree, she’ll always feel stupid.”

Same is true with money. If you try to approach finances like a man, you’ll always feel like a fish out of water.

So instead of trying to do it ‘their way,’ it’s time we value the feminine perspective. Let’s look at 5 ways the genders differ:

#1: Our Impetus for Investing

Men are very motivated by profit, perks, personal gain. No matter how much they have, amassing more is a powerful incentive.

Not women. Once we’re financially stable, we’re rarely motivated by money. Sure, we want to profit. But what really inspires us is helping others.

How Much Risk Can You Tolerate?

Written by Barbara Huson

Risk tolerance. You’ve probably heard those words bandied about when talk turns to investing. But do you know what they mean?

Risk tolerance is generally defined as the ability to stomach large swings in the value of your investment portfolio. Because the market, by nature, is very volatile, understanding your risk tolerance is vital for making prudent decisions.

There are 3 factors to help you figure it out.

Who’s Got Your Back?

Written by Barbara Huson

Have you noticed, in gyms, when guys are lifting really heavy weights, they often ask someone, usually a perfect stranger, to spot them?

It’s known as The Law of Heavy Lifting. I also call it The Law of Higher Earnings.

How many times have you seen a woman, while working out, tap someone to spot them? I never have.

We’ll hire trainers, but ask another to spot us, especially if we think they’re ‘busy’? Doesn’t happen! Why?

For one thing, we rarely lift very heavy weights. But more likely, it’s because we don’t want to bother anyone. And too often, we’re determined to do it alone.

Financial success, however, requires lifting heavier weights in order to build up our confidence, strengthen our resolve and climb to greater heights.

For this, we need our spotters, people we trust to have our backs, push us further, give us feedback.

Inflation Protection

Written by Barbara Huson

If you can fog a mirror, you’ve probably heard. Inflation is the highest it’s been in decades.

Inflation is a ravenous creature that devours our dollars like a caterpillar on a leaf–slowly, methodically, little bits at a time. But this recent bout seems more like a famished elephant.

The only way to counter the ravages of rising prices is to make sure at least some of your savings is working harder than it would in a bank, where it earns next to nothing.

In normal times that means the stock market. But with markets in turmoil, many of us are looking for safer alternatives. That’s why I got so excited when I read Jason Zweig’s column in this week’s Wall Street Journal.

“Fortunately, raising the return on your cash is easier than ever,” he declared. “The two best choices are money market funds and U.S. Treasury securities.”

Inflation: A Reason to Worry….Or A Call to Action?

Written by Barbara Huson

Even the wealthiest worry about money. Their biggest fear: Inflation.

Inflation is, indeed, a ravenous creature that devours our cash like a caterpillar on a leaf—slowly, methodically, little bits at a time.

For years, however, inflation has stayed quite low. But that’s rapidly changing. Inflation has hit its highest rate in more than 40 years. And it’s expected to keep escalating.

Is it time to start worrying? Heavens NO! The worst response to climbing costs (or most anything else for that matter) is to go into fear, which tends to have a paralyzing effect.

Instead, look at rising inflation as a resounding call to action…no matter how much or how little money you have.

Is Money Your Drug of Choice?

Written by Barbara Huson

How often do we use money like Novocain, spending freely to numb the pain in our lives or the pressures at work? But instead of making things better, it just gets us deeper into trouble.

Yet we justify our shopping sprees with thoughts like, “I’m going through a divorce. I deserve this,” or “I hate my job. At least I can enjoy my life.”

What gets us into trouble isn’t the spending, but our self-deception. It’s called denial. And denial can generate considerable debt.

Getting out of denial is a prerequisite for prosperity. Credit card debt is insidious, but not insurmountable.

Making minimum payments can take 30 years or more to pay off (because 75 percent of what you pay goes toward the accumulating interest).

The Secret to Financial Success…in Only Five Words

Written by Barbara Huson

One day, I was glancing at the Wall Street Journal, when 5 words leapt off the page—”The survival of the focused.”

I knew those five words carried a powerful message. A message High Earners understand very well. But one Underearners have failed to grasp.

Financial Success belongs to the focused.

Without focus, it’s easy to get sidetracked by multiple distractions fighting for your attention. But with focus, conflicting objectives cease to control you, making it easier (and less stressful) to take decisive action without second guessing.

A Sure-Fire Way to Increase Your Self Worth

Written by Barbara Huson

I always asked High Earners: “Are you doing what you’re doing for the money?” No, they insisted, quite vehemently. They were driven by the passion, by the challenge, by the recognition. But not money.

Yet, in the next breath, they all said the same thing. “But I damn well want to be well compensated…because I know I’m worth it!”

Where did their strong sense of self-worth come from, I initially wondered? As a chronic underearner, I wanted what they had. The answer soon became stunningly clear.

They had a simple strategy. Whenever they were asked to do something, whenever an opportunity arose, if their reaction wasn’t a strong ‘Hell Yes!’ it was clearly a “Hell No!”

These women each told me that, initially, they were afraid to speak up and tell the truth. But they forced themselves to ask for what they wanted, just as they said ‘no’ to what they didn’t want.

This simple (but scary) act was the secret to their financial success. Here’s why:

Asking for more is an act of self-love.
Saying no is a statement of self-respect.
Refusing to settle is a show of self-esteem.
And walking away is a sign of self-trust.

Whenever you stand up for what you want, whenever you refuse to take less than you deserve, your life will begin to change, sometimes dramatically.

You’ll also notice a shift in how you feel about yourself. Speaking up becomes not something you should do, but something you have to do – because you know in your heart you’re worth it.

Where do you need to start speaking up? Tell me about it in the comments below.

How much Risk Can You Handle?

Written by Barbara Huson

With soaring inflation soaring and turbulent markets, it’s a good time to discuss an important concept: Risk tolerance.

You’ve probably heard those words bandied about when talk turns to investing. But do you know what they mean?

Risk tolerance is generally defined as the ability to stomach large swings in the value of your investment portfolio. The market, by nature, is very volatile. It’s vital to understand your level of tolerance for risk in order to make prudent decisions.

Here are 3 factors to help you figure out how much risk you can tolerate:

The first factor is time. When will you need the money? Generally, you can take a lot more risk if you’ve got 10-years or more. Money you need in the next 3-5 years should be in cash. You don’t want to be forced to sell if the market is down.

The second factor is cash reserves. How much cash do you have on hand? If all your money is fully invested, with no extra cash to cover unexpected expenses, that would be a problem. Either you must sell at a loss or go into debt.

The third factor is sleep. How much volatility can you stand before you start stressing out, unable to sleep at night? We all know what happens if we don’t get enough shut-eye. Everything suffers!

Those factors are crucial considerations. But keep in mind. Your biggest risk is not protecting yourself against inflation.

Stuffing your entire savings under the mattress is like living in a house full of termites. Even if nothing seems awry, you’ll doubtlessly be dealing with costly damages down the line.

What do you feel your risk tolerance is? Has it changed in the current market situation? Tell me what you think below.

Financial Wellness

A Master Class in Wealth Creation…Based on Kick-Ass Quotes

Women Are Different Than Men

How Much Risk Can You Tolerate?

Who’s Got Your Back?

Inflation Protection

Inflation: A Reason to Worry….Or A Call to Action?

Is Money Your Drug of Choice?

The Secret to Financial Success…in Only Five Words

A Sure-Fire Way to Increase Your Self Worth

How much Risk Can You Handle?

Meet Barbara Huson

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