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Seven Things Smart Women Know About Money

Written by Barbara Huson

woman on stairs1. Smart women think beyond being a wage earner and dollar watcher to become a wealth builder. Wealth has nothing to do with what you make. Wealth comes from what you do with what you have. You create wealth by investing in assets that will grow faster than inflation and taxes take it away.

2. Smart women don’t wait until they have a lot of money to begin. Wealth begins with as little as $25 to $50 a month. (If you simply put $2.00 aside every day, you’d have saved more than $60 at the end of each month). Through the “magic” of compounding, small sums grow into a sizable portfolio.

3. Smart women don’t wait for a crisis to get started. A crisis is the worst time to start anything. You can’t think straight. You tend to make terrible decisions, sink into paralysis, and leave yourself wide open to financial losses. Instead, make a conscious choice to become smart with money.

4. Smart women know with total conviction they must do it themselves. Dispelling the myth that “someday my prince will come” is the most important financial decision you will ever make. Prince Charming need not be a man, or even a person. Our “prince” could be an insurance settlement or the lottery, anything we fantasize will save us financially.

5 Smart women talk to others about money. You can learn so much from another’s mistakes and draw inspiration from their successes. You can use others as sounding boards, role models, and sources of encouragement, advice, and information. Why not start a financial book club or discussion group?

6. Smart women deal with their unconscious attitudes to avoid sabotaging success. If you find yourself fogging up or spacing out, if you can’t seem to apply the information you learn, or resist learning it in the first place, then chances are, psychological factors are impeding your progress. Once you identify your internal blocks, success can occur spontaneously, almost effortlessly.

7. Smart women understand risk makes her wealthy. Risk in the market refers to volatility and volatility refers to price swings. The more a stock moves up and down, the riskier it is. But those fluctuations only matter when you sell your holdings. The longer your time horizon, the less important those ups and downs are. If you’ve got say 10 years, those daily fluctuations are irrelevant.

It’s not about money…

Written by Barbara Huson

A lot of women in my workshops tell me they feel guilty about wanting to make more money, as if a profit motive were something shameful. I understand their conflict. I used to struggle with it myself. But that was before I wrote my book, Secrets of Six-figure Women. Stone archI always asked every woman I interviewed this question: Are you doing what you’re doing for the money? With rare exceptions, every one swore that it wasn’t the money that motivated her success. It was what the money represented, something much deeper, more personal, and very individual. These women were driven more by what they hoped to achieve rather than what they aspired to earn. Each one had a vision for her life based on cherished values like recognition, independence, security, or achievement. These intangible goals rather than hard cash provided the fuel for their financial success.

However, there was an important distinction that made a big impact on me. Granted, these women weren’t in it for the money. But at the same time—this is the key—they darn well wanted to be well compensated because they felt they were worth it. Their financial success didn’t come from the love of money, but love of self…and the value they placed on what they offered.

I have come to see that achieving self love, self worth, self respect are the real secrets to financial success, much more so than working longer hours or seeking multiple streams of income. Would you agree?

Blind-sighted by Bling

Written by Barbara Huson

credit cardListen up, all you single gals looking for a rich guy. I have a word of warning for you. Beware the Big Spender. He might be a Kook.

What’s a Kook, you ask? “Someone you shouldn’t date,” explains Adryenn Ashley, who wrote the book on Kookiness, Spotting the Kooks.

Adryenn knows what she’s talking about. She’s a forensic accountant and certified divorce financial analyst who’s witnessed too many marriages go awry. “I saw a lot of people who got married and shouldn’t. I wanted to get to them early before they fell in love with the wrong guy.”

The Big Spender is often that “wrong guy.” He’ll woo you with expensive gifts, lavish meals, exotic vacations. Problem is, says Adryenn, Big Spenders, as seductive as they are, can often be heartbreaks waiting to happen. To him, you’re simply another possession. He values money far more than intimacy. When he does something wrong, his first response may be to give you a string of pearls. But don’t expect a heartfelt discussion or a genuine apology. Five years down the road, he probably still won’t know your favorite color or remember your birthday. And if one day you leave, he likely won’t even notice.

Sure, I may be stereotyping. But ever since my conversation with Adryenn, I think it’s a potential problem worth pointing out. Especially since I know the Prince Charming syndrome is alive and well.

“It’s so easy to get blind-sighted by bling,” Adryenn told me. So what do you do if you’ve got a big rock on your left ring finger, given to you by your beloved Big Spender? Take precautions, Adryenn urges. Get an “airtight prenup.” Or better yet, consider one of her workshops: A Man and A Plan. The workshop sound fabulous…even if you aren’t engaged to a Kook. She guides you and your man through those difficult financial discussions so they become collaborative, not adversarial. Then she has you both writing a prenup that’s based on your marriage vows (not your worst fears). How cool is that?

You can learn more about Adryenn’s books, workshops or other offerings at http://www.everygirlsguides.com.

A Sure Sign You’re in the Discomfort Zone

Written by Barbara Huson

Glass wall - ResistanceYou know the feeling. You finally decide to take charge of your money. You’re going to get smart. You’re going to pay off your debt. You’re going to invest regularly. Off you go…when suddenly, you run smack dab into resistance.

Resistance, by the way, is the psychological term for “I don’t want to do this!” You don’t feel right. You get scared. You want to quit. Resistance, more than anything else, is what stops women from taking the financial reins.

Trouble is, resistance is very subtle and easy to justify. To help you identify when you’re in it, I’ve come up with Twelve Signs You’re In Resistance

1. YOU’RE TOO BUSY (“I have no time.”)

2. YOU PROCRASTINATE (“I’ll do it later.”)

3. YOU’RE SCARED INTO INACTION (“Omygawd, what if…?”)

4. YOU DEFER DECISIONS (“You do it, you decide.”)

5. YOU LOSE INTEREST (“This is boring, it’s not my thing.”)

6. YOU’RE FORGETFUL (“Oh, I meant to, but I forgot.”)

7. YOU’RE DISORGANIZED (“Where did I put that…?”)

8. YOU FOG UP, SPACE OUT (“What are you talking about?”)

9. YOU FEEL PARALYZED (“I just can’t think or get going.”)

10. YOU FIND REASONS NOT TO ACT (“I can’t because…”)

11. YOU’RE IMPATIENT (“This is taking way too long.”)

12. YOU KEEP RUNNING INTO NAYSAYERS (Other people say, ‘You can’t do that,” “That’s not possible.”) This form of resistance is especially sneaky. You project your own fear out onto others.

How do you get past resistance?

  • Understand that resistance is normal. It simply means things are changing, not that something is wrong
  • Do not let resistance derail you, at least not for very long
  • Whatever it is you don’t want to do, that is exactly what you need to do next

What’s With the Fear Tactics?

Written by Barbara Huson

Maybe I’m over reacting. I just heard yet another conference speaker warn me, along with a few hundred other women, that unless we take action, most of us will never retire because we can’t afford to.

Enough with the bad news already! The financial industry, along with the media, seem to believe that the best way to motivate women is by frightening us with scary statistics, alarming statements, and worse case scenarios. But clearly fear tactics haven’t worked. Women hear these gloomy statistics and instead of taking action, just get depressed and go into avoidance.

I would love to see the financial industry/media do away with (or at least down play) those depressing statistics. And instead, talk about how financial success allows women to help her kids, her parents, people she loves. Tell us stories about the joys of philanthropy, the thrill of leaving a legacy. Give examples of how proper financial planning will give her the resources to contribute to causes she feels passionate about.

To most women (and I suspect some men), helping others and making a difference is what financial empowerment is all about.

Does anyone else feel as strongly as I do about this?

Think Big, Act Small

Written by Barbara Huson

Let me suggest a foolproof strategy for achieving financial savvy…especially if you’re having a hard time doing it. Think big. Act small. And never, ever stop until you reach your goal.

One reason so many have trouble with money—saving more, investing wisely, or paying off debt—is because it seems so overwhelming. And indeed it can be. But I truly believe the secret to success is this: small steps consistently taken create remarkable results.

I am convinced:

  1. It doesn’t take a lot of time to get smart.
  2. It doesn’t take a lot of money to create wealth.
  3. It’s best to begin when you’re young, but it’s never, ever too late to start.

A big part of attaining financial freedom is simply changing your habits.

Early on, I devised a 3-step plan for myself that was amazingly effective at changing my habitual avoidance. Try these 3 steps for 4 months, and see what happens:

Reading up1. Everyday, read something about money, even if it’s just for a minute or two, even if it’s only the headlines of the business section of the newspaper, or a money magazine while you’re waiting in line at the grocery. So much of getting smart or smarter about money is understanding the jargon and the current trends.

2. Every week, have a conversation about money, especially with someone who knows more than you. I learned this from my interviews with financially savvy women. Whenever you meet anyone who knows more than you, ask them how they got smart, the mistakes they made, and what’s worked best for them. I think it’s our secrecy and silence about money that keeps us stuck.

3. Every month, save. Automatically have money transferred from your checking account or paycheck to your savings account. How much? Better to save say $10 a month, than try to put aside too much and eventually give up because you feel the pinch. Small amounts really do add up surprisingly fast. And as the saying goes: it’s easier to find 500 ways to save $1 than it is to find 1 way to save $500.

Powerful Giving

Written by Barbara Huson

GivePhilanthropy is usually the least thought out, most disorganized part of our financial activities. We know charitable contributions save us taxes.

But the question we rarely ask is: How can I maximize not only my tax benefits but the power that philanthropy gives me?

The more thought and planning you give to your charitable donations, the more—so to speak—bang you get from your buck—financially, socially, emotionally.

To this end, I put together Six Principles of Powerful Philanthropy:

1. Educate yourself financially. The number one reason women don’t give more is lack of knowledge. No matter how much money a woman has, if she’s afraid, insecure, and/or ignorant around money, she’ll be restrained in her giving . In a recent study, 73% of women felt that passing money to children and causes is important, but only 14% have conducted detailed financial planning to ensure an effective wealth transfer.

2. Get your financial house in order, with your spouse. Review your finances regularly. Smart money management follows 4 rules:

  • Spend less
  • Save more
  • Invest wisely
  • Give generously

These rules must be followed in this order. Giving without following the first three rules is an act of self sabotage. Not only do you jeopardize your future security, but you diminish the impact you can make with your money.

3. See yourself as a philanthropist in your own right. Too many women think it’s their husband’s money, so charitable donations are his responsibility. But women outlive their spouse and will ultimately be in charge of the family estate. Another reason women don’t engage in planned giving is because, if they’re not a Carnegie or Rockefeller, they don’t think they have enough. Not so. Small amounts can add up to big changes.

4. Give serious thought to the legacy you want to leave. I once saw a poster with the word: “will it matter that I was?” Ask yourself: How do I want people to remember me? What changes would I like to see in the world. What do I value most? Does my giving reflect my values?

5. Work with professionals. Figuring out how much is possible and advantageous to give is a complex issue. It should be a team effort. Find reputable estate planners, attorneys, financial advisors, accountants. Studies show, however, 9 out of 10 people don’t mention charities in their will. So if a professional doesn’t bring it up, you be sure to.

6. Make it a family affair. Use philanthropy as a way to teach kinds about values, money management, and life goals.

The most powerful philanthropists are not the ones with the highest net worth. They are the ones who are financially educated, financially secure, and passionate about a cause.

Financial Abuse is a Form of Domestic Violence

Written by Barbara Huson

WeddingI’m really excited about a groundbreaking project—The Allstate Foundations Domestic Violence Program. They’ve hired me as their spokesperson.

For the first time, a large corporation is addressing an issue on a national level that no one’s talking about—Financial Abuse.

We tend to think of domestic violence as physical, emotional, and verbal. Yet financial abuse is just as insidious and dangerous….perhaps even more so because we don’t recognize it.

For years, I was the victim of financial abuse. And I had no idea. The signs were there. I just didn’t see them.

For example: My husband controlled the amount of money I had access to. He refused to discuss our finances with me, and withheld important information and documents. He got us into illegal deals, “forgot” to pay taxes that were in my name, racked up a huge debt, then left the country, so I was left holding the bag! I was so embarrassed and ashamed of my ignorance, I told no one what was going on.

According to a recent poll by The Allstate Foundation, the number one reason victims stay with their abusers is financial instability. So The Allstate Foundation is doing something about this horrific problem. Aside from raising public awareness and thought leadership, they’ve created 2 amazing programs:

  • A financial education curriculum designed especially for advocates and survivors of domestic abuse.
  • An Education and Job Training Fund that provides women with immediate grants for finding work or improving their skills.

You can find out more on www.econempowerment.org. If you are in immediate danger, call the National Domestic Violence Hotline: 800-799-SAFE (7233) .

Please spread the word. According to a 2006 Allstate Foundation national poll, over 74% of us know someone who is the victim of domestic violence. Now you can help.

Compatibility is the Key

Written by Barbara Huson

Here’s some good advice for all single women. When you start dating someone, find out first thing if you are financially compatible. True, conversations about money can be awkward, especially in the beginning of a relationship. But, according to an article from the Detroit Free Press titled: In Romance or Finance, Compatibility is the Key…money matters should be addressed sooner rather than later.

Talk“If you wait until after you’ve fallen madly in love, it may be too late to extricate yourself,” said Ginita Wall, co-founder of the Women’s Institute for Financial Education.

I couldn’t agree more. Here’s the good news. According to the article, if you’re not ready to talk turkey, at least look for signs that you’re well-suited. For example:

  • Ask about their past experiences, their early memories with money, or how their parents handled finances.
  • Pay attention to their spending habits, and if you’re comfortable with them.
  • Notice how they pay for purchases: cash, debit, or credit.
  • Consider if their lifestyle makes sense. “A person’s choice of car, clothes, and home are obvious conversation starters,” notes one expert.

Love may be blind. But when it comes to money, you’re really smart to keep your eyes wide open.

Your Feminine Mystique

Written by Barbara Huson

I’ve been writing books about women and money for over a decade. But it’s only in the past few years that I’ve witnessed a growing trend. Women are coming together for the sole purpose of financial education. And not just in formal investment clubs. Women are forming money book clubs or simply study groups on the subject. They are gathering in person, or through the internet. ( Wife.org offers fantastic money groups).

HandsThis phenomenon sends me right back to the early 70”s when, sparked by Betty Friedan’s book “The Feminine Mystique,” consciousness raising groups began sprouting up. For the first time, women were sharing more than tips on how to catch a man or raise a child. We began searching for meaning and purpose outside the proscribed roles of mother and wife. Those tiny gatherings around kitchen tables sparked perhaps the most dramatic social change in history: the feminist revolution.

But you know what the feminists forgot? Money. Today women make up half the workplace, but financially many of us are still in the dark ages.

I am thrilled with this new dimension of consciousness raising. Women finally understand they need to be financially savvy. And we’re figuring out fast that learning in groups is especially powerful. Women by nature are relationship oriented. We learn best from each other. Combining girl-talk with financial-speak greatly decreases intimidation levels and ups the fun factor exponentially. The result: a growing cadre of economically independent women are reclaiming their power, taking charge of their lives, and having a great time in the process.

In case you missed it, a study group guide is included in the paperback edition of Secrets of Six-Figure Women. I’ve gotten a lot of good feedback from women who have followed it.

Have you joined (or started) a money group? I’d love to hear about your experience.

Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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