“Never spend your money before you have earned it.”
-Thomas Jefferson
You Can’t Retire Off Shoes and Handbags
Women are bombarded with ways to improve their lives. From talk shows and magazines to social media and best-selling books. The advice women get usually revolves around looking better, losing weight and being in style.
- We are told how to reduce calories, how to dress better, how to get a flatter stomach and longer eyelashes – but we are almost never told how to get financially independent.
For every article on saving money, there are 100 on how to curl your hair or apply eyeliner.
What’s Sexier: Money in the Bank or a Mountain of Credit Card Bills?
The thinking is that financial responsibility isn’t very sexy. Who wants to read an article about interest rates? But, what people don’t think about is that money is only sexy when you have it – borrowed money, like credit card debt is the opposite of attractive.
The goal is to be financially secure and independent.
Image from Better Decorating Bible
“I wanted to be an independent woman, a woman who could pay for her bills, a woman who could run her own life – and I became that woman.”
-Diane von Furstenberg
The lesson here is don’t let billboards and commercials convince you that you need one more kitchen gadget or body wash to feel good about yourself. Or that you need to borrow money to fake a lifestyle you can’t afford. Money in the bank is one of the best feelings in the world… just ask anyone who doesn’t have it.
Less Lipstick, More Benjamins
We wanted to add to the conversation about women owning their money – because it’s more important than losing 5 pounds. Don’t get distracted by all of the ads for miracle serums and the latest hair product; these are all designed to do one thing: separate you from your hard-earned money. Don’t be tricked!
For women to be financially independent, they have to be aware of slick advertising that preys on vulnerabilities. Instead of a drawer full of lipstick, you should having a savings account full of money!
Dodge the Debt Trap
Your goals should be to leap across those murky debt moats – the ones filled with high-interest loans, credit cards and second mortgages. Women should enjoy a comfortable lifestyle after they retire, not one riddled with bills and phone calls from collectors. The stuff you buy today is not worth the anxiety you will feel tomorrow.
Make Sure You Find a Reliable, Experienced Advisor
“Trust me—most investors who lose money due to bad or risky investments do not have the Securities and Exchange Commission (SEC) knocking on their door to help. There is no one holding a bouquet of roses waiting to give them a big rescue kiss and return their life savings in the form of a check.”
-Crystal Oculee, “Money Confidence”
After saving money, downsizing and creating a smart budget that works FOR you, not against you – it’s time to lock in a great financial advisor. Not an average advisor, a GREAT one. Don’t trust your savings to just anyone. Make sure you get an advisor who is certified and comes with top recommendations. And never be afraid to ask questions – it’s your money, you are 100% responsible for its well-being.
Now… are you ready to get wealthy?
FOUR HABITS – OF THE ULTRA RICH – THAT YOU CAN PRACTICE TODAY
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1. SAVE, SAVE, AND SAVE SOME MORE!
“Beware of little expenses. A small leak will sink a great ship.”
-Benjamin FranklinStarting today, deduct at least 10 percent of every paycheck and put that into savings. If you value financial security, then you have to prove it with your budget. People who spend hundreds on clothes every month, but have no savings, DO NOT value financial security. So change your habit and change your life.
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2. INVEST WISELY
“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.”
-Warren BuffettWhen you invest in a 401k in your 20s, 30s and 40s, you have to commit to this investment for the long haul. Make sure your funds are allocated properly, but don’t sweat small shifts in the market. Selling or getting out because you panicked is almost always a bad move.
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3. TAKE ACTION
“Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy.”
-Dale CarnegieIn money terms this means being proactive with your paycheck. Look at your check like it’s a superpower that will enable you to retire comfortably, afford any emergencies and eliminate money stress from your life.
Don’t rely on your spouse or financial advisor to do all the retirement heavy lifting. Get involved in your investments. Ask questions. And make sure you meet with your advisor at least once a year to ensure you’re on the right path to financial freedom.
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4. TENACITY
“Do not be embarrassed by your failures, learn from them and start again.”
-Richard BransonSo, you made mistakes. You got into debt. You claimed bankruptcy. That was in the past. Today, you’re going to make smart choices to climb out of each and every financial hole you are in. Yes, it will be hard… but IT WILL BE WORTH IT! Make small steps toward a big goal, before you know it you will be debt-free with smart investments and lots of money in your savings account.
Part of being tenacious and overcoming past missteps, is sacrifice. This might mean getting a second job (or one that pays more), investing in your education – so that you can get a higher-paying job, downsizing (trade in an expensive car for one that costs less) and cutting out the extras (instead of getting weekly manicures, use that to pay off a credit card).
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TAKEAWAY
Remember ladies, shifting your priorities can be tough at first. But once you start, you will feel so much more powerful and in control. These are habits that work – so start shopping in your closet and depositing money into your savings.
1http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/
2http://www.theatlantic.com/magazine/archive/2016/05/my-secret-shame/476415/
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