Gas prices DROPPED!

Hooray!  Don’t you love that feeling?  You know that sweet feeling that you have a little more money in your wallet.

What are you gonna do with it? They say that, on average, each of us will have an extra $500.

I bet you have a list in your head for using that money.

Let me guess what is on your list. Hmmm………… More Xmas gifts for the family, a repair of your home, car or a down payment on a new car or washing machine……Have I  hit one right yet?

Television, magazines and online ads bombard you with the same message. SPEND IT !!!!!

What if…….? What if you tried something radically new (“disruptive”)? What if you did NOT SPEND it. What if you  SAVED THAT MONEY? Or more correctly …..

What if you put that money……………….. to work for you in your IRA or savings account, a little every week?  You know, $25 per week or $50 per month.

What if you used it ………………..to pay off (or pay down) your credit card debt, $25 every week and/or $50 per month? Or front load it, that is hit it hard, by paying down $100 per month to reduce the balance on the credit card that requires you to pay the highest interest charges? (You know, debt reduction is a form or saving that has the added benefit of reducing your stress.)

Once you start that saving and/or debt reduction, why not do that for the next, oh…..2-3 years? Save $25 per week and/or $50 per month and deposit it into your IRA and/or pay off all your credit card debt? Make it $20  per week or $100  per month. Whatever you can afford.

Treat yourself!!!! Put that money into an account with your name on it. You will feel less stress  and more secure. That will make your life better, easier, softer, kinder after you leave work behind. Less anxiety, more control.

That is what I am advocating. Give yourself  more control!!!

I want you to take the money that used to flow out of your wallet into a gas tank, and move it into accounts with your name on them. You take it!!!!! You use that money to increase your savings and/or drop your debt burden.

Take full advantage of the decrease in gasoline prices.  Put yourself on your list. Take Control ! Give that money to  yourself!!! Why? It will  build your wealth and security.

Wouldn’t that feel good?

 

Mistakes?

Sally Krawcheck wrote a great piece recently. I have to bring her wisdom to you.

She begins with a few  “misjudgments” we women might make. Now I am sure each of you is….perfect. But just in case you are a bit more human, and so may occasionally err (like I do), I thought I would list a few here.

This list starts with a few the mistakes that wives/partners often make. One or two might seem a  little “retro.” Read them anyway, making sure you have not done these things, because you trust a partner too much, or  think you do not have enough time, or will never face a crisis like divorce or the death of a partner.

1. Letting your husband or partner manage the money, without getting involved.

2.  Signing a joint tax return without reading it.  

As a woman in the 21st century, you need to know how much money you hold as an individual, how much he/she holds and how much you both hold jointly in accounts. You need to know where the money is stashed, how it is managed, and if it is managed or mismanaged. You also need to be able to discern whether your partner is hiding money or misdeeds from your  (like maintaining “another woman” or engaging in some nefarious and illegal activity) and doing so with your money and risking your good name.

You also need to know how much money your partner/husband earns. That dollar amount is written right there on the front page of the the tax return, and the W-2 slips that you need to provide to the IRS. If your partner earns a substantial amount, you need to concern yourself with the ways in which this money is spent or retained to increase your joint financial security. Does your partner/spouse share income with you? Do you each hold accounts in your names, and/or joint accounts? Or does he (or she) hold it all in his/her name?  Are there provisions made for loss, such as a death? Are there steps taken to make sure you will not be left penniless? And if you  have children, what has been done to provide for them, as heirs or orphans.

This becomes important whether you are dependent upon your partner for an income, or if you both earn a living. You need to make good decisions about the income you both earn. Why? In the 21st century, one of you is likely to lose a job, at some point–due to corporate restructuring, downsizing, mergers & acquisitions, etc. So you need to deploy your income while you each work to make sure you have an emergency fund (to tide you through job losses). And you  have to make certain you are saving enough cash from each paycheck and investing it in case of a long term loss of income, a disability or loss of your partner.

Let me offer you a third one on her insightful list. 

3. Making decisions about staying at home, versus retaining employment after you have children (or care for an ill parent, in-law etc.) without calculating the long term impact on your career and your family’s income, is a lapse.

Why consider this? Once you leave the workforce you are less likely to return to a position of equal status and income.  History has shown that women’s income is often only 77% of that of a man. Some argue that this lower pay is a function of our movement out of and back into the workforce. So, why not think this decision through, with the aid of a spreadsheet? Run some scenarios about the dates of your  return to the workforce. Make sure you calculate best case and worst case scenarios and then run a scenario for something in between these two.

These are just 3 of the “The Top 10 Financial Mistakes Women Make” according to Ms. Krawchek. I promise to offer you a few more in subsequent posts.