Quote of the day – Money

“We can tell our values by looking at our checkbook.”  Gloria Steinem

Perhaps not so much inspirational as practical, but something that’s very important as women.  I was a personal financial seminar yesterday given by a Galia Gichon- check out her website, Sown to Earth Finance for great tips and her new kit – My Money Matters.  who pointed out many facts I already know – women have a complicated relationship with money, women earn .79 cents to a man’s$1.00.  Women spend an average of 11 years out of the workforce caring for family.  Women live 10 years longer then men. All of this adds up to poor women – poor now and poor in retirement.  And then there are the issues women have with money – talk about a complicated relationship – we feel guilty for having money.  Many times we’re very good at making – but also very good at spending it. So good at spending it that we bankrupt ourselves – not literally perhaps, but in the sense of lost opportunity.  Want to change jobs to something that may pay less but is more fulfilling – you can’t if you’re overspending.  Want to spend more time with the kids – well it might be possible if you hadn’t shopped until you dropped.  Want a comfortable retirement?  How many bath towels do you own (Don’t worry – I am not pointing fingers – you should see my closets).

So take a few moments to look over your checkbook or your credit card statement and see what you’re really spending money on. Is it just the basics?  Or is the basics plus the TJ Max habit?  Which would make you feel better – an hour in the aisles of a store, or resting easy at night knowing you have money in the bank?  There’s a saying – Nothing tastes as good as thin feels.  Well, try this one – Nothing feels as good as rich.  And by rich, I don’t mean Donald Trump rich – I mean knowing you can survive for a few months if you lost your job, that you are saving for retirement, that your credit card debt is not taking over your life – that possibilities are opportunities are available to you because you have the means to seize them!

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Four things to do with your Money

So girls, there are really only four things you can do with your money, whether you have one dollar or a hunded.

1. Save – the obvious one.  This means you put the money away someplace (in the drawer, in a standard savings account) and you don’t touch unless for carefully considered reasons – the rainy day has finally come.

2. Spend – the second obvious choice.  Most of us need to spend some of the money we have, for necessities like food, shelter, etc.  It’s figuring out what the difference between a need and a want that you’re classifying as a need that makes the difference in how much you spend and have left over. So the more you can control your spending, the more you will have left over for everything else

3. Invest – this is money that you haven’t spent, or saved.  Here you are going to take some risk with the money.  You’re going to spend a little money in hopes to make money.  Some investments are safer than others.  For instance some bank accounts pay a higher interest rate than others, but may not be secure.  However, you might also decide to invest in a company, through the purchase of stock.  You buy 1 share for say $10 and you hope that the share price will go up, to say $11 – thereby giving you a 10% return on your investment. 

However stocks are risky and sometimes the share price might go down to $9 and you have less money than when you started.  So it’s important to invest with money that you don’t need – after you have spend for your necessities and put some aside for the "rainy day".

You might also decide to invest more directly in your own business. For instance you may decide to start a babysitting service. So you invest $10 in printing up fliers and post cards in the hopes that you will get several clients who will pay you more than $10 for your services.  That would be your profit as a result of your investment.  Your profit can be used how you wish – Spend it, Save it, or invest it again…

4. Give it – that’s right – sometimes, girls it is better to give than to receieve.  Somehow the money we give seems to come back to us in some other form  – the great cosmic rule of the universe, I guess.  So if there is a special cause you would like to support, don’t be afraid to share some of your cash with them – just make sure you have covered your spending needs and your saving needs first!  And – please lending money to friends isn’t exactly charity – it’s called borrowing – and they should pay you back!

 So four different ways to spend your money – what’s the best way to stick this plan.  Take 4 jars or a box or something and divide it into 4 different compartments.  Mark it spend, save, invest and give and divide up your money among the 4 buckets.  You don’t have to divide it evenly, in fact saving just 10% of your income can make you rich in the long term – that’s $1 out of $10, as long as you don’t spend that dollar.  From the save dollars, you might want to allocate half of that to investment purposes.

To help with your spending – sometimes we need little things on a regular basis, and sometimes we want something bigger – like a new shirt or shoes.  Make a list of the bigger items you want. Cut out a picture of it and put it on a jar to motivate you to save for it.  Put some of your money towards those everyday expenses and something towards the thing you really, really want. Paying for it yourself, in cash will feel great.

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Quote of the Day – Money & Life

"When you are in control of your money, you are in control of your life."

Powerful words to live by GirlMoguls – remember not to be owned by your money – own your money and your destiny.  There is no doubt that money makes the world go round and that as girls and women we need to educate ourselves about the importance of money.  Woe to us if we don’t.  Money is, as they say, a means to an end, not the end itself.  It may buy us things, necessary things, luxuries, experiences, education, presents etc.  But most importantly, money in the bank represents options – options to take a different job, to buy a house, to go on a trip, to quit a job, to start a new business, to embark on an adventure.  Loving your money respectfully will help you treat it well and help it grow – and by growing, and make smart choices in how and where you spend it, will allow you to go on great journeys.

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Ways to Make Your Daughters Financially Savvy

Everyone wants to know how to be financially savvy.  Many of us especially want to teach our daughters important lessons about money.  Whether it’s so they don’t repeat our own mistakes, or that they reap the valuable benefit of our wisdom, we want to make sure our daughter’s understand the value of money – if only to dispel the notion of the shopaholic girl, or the girl who expects prince charming to come and pay for everything.  We all know how unrealistic  a goal that can be.  Better to teach our girls to be self-reliant from the get go.  Teaching them handle their money – to indeed love it and respect it is one of the foundations of girlpower self-reliance.

So without further ado – a series of posts about raising Money Chicks – Financially savvy girls.

1. Delayed gratification

So why does the first one have to be the hardest?  Because it’s the foundation of all the rest.  Teaching girls about money means teaching them that they can’t have everything all at once.  It’s something grown ups should practice as well. 

Teach them that spending money now means less for saving. And that spending money on the little things now means less for the bigger things.  Enjoy magazines?  Well the average cover price of a magazine at the checkout line is over $3.00.  Seems like a small bit of cash when you’re buying a week’s worth of groceries. 

Making your girls pay for it themselves might break them of the habit.  Suggest they take it out of the library instead.  It’s free thay way, and they have saved $3.00.  Or, if you’re feeling generous, make them a deal.  Tell them can buy the magazine, or if they wait and get it from the library, you’ll give them half of the cover price as an incentive to save money. 

Of course they might start to develop an interest in magazines of all subjects (More, anyone) but at least they’ll be reading.

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