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June 10, 2009

Start Reading The Wall Street Journal, Now!

Posted by barbarastanny under Barbara Stanny, Business, Economy, Finance, Invest, Money, Politics, wealth | Tags: , , , |
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Note to financial neophytes—don’t let theStart Reading The Wall Street Journal - Now! Wall Street Journal intimidate you.  It’s a fabulous learning tool…and offers some fascinating reading… for everyone, no matter how much, or how little, you know.  http://online.wsj.com/home-page

Sure it’s full of, what may appear to some, as indecipherable gobbly-gook, written in ‘broker-speak.’  But the WSJ is a very powerful resource, so ignore all of that and focus on the following:

1.      Peruse the front page.  Every once in a while there are some great human interest stories about the good, bad, and especially the greedy.  Plus, the side-bar on the left is like “Current Events for Dummies”… a collection of news snippets giving you a speedy update  to the latest news (financial and otherwise).

2.      Glance over the following two sections: Marketplace and Money& Investing.  A quick peek is all you need. You’ll be amazed at how much you’ll pick up just by osmosis.

3.      Savor the fourth section (called by different names depending on the day of the week): Personal Journal (Tuesday-Friday); The Journal Report (Monday);  Weekend Journal (Saturday).  This section is loaded with easy-to-read,  often fascinating,  and always useful  tidbits….everything from fashion, sports and personal finance to restaurant, wine and  book reviews.

Let’s take Monday’s WSJ’s Journal Report (theme for this report was “Your Money Matters”).  The front page article was Best Online Tools for Personal Finance, and it was chock full of excellent (and free) website recommendations.

Even if the only thing you do is glance at the Wall Street Journal everyday for 3 months, you’ll be amazed at how much you learn!  Don’t be intimated.  The Wall Street Journal is a great resource, and a must read if you’re serious about upping your personal “financial awareness quotient”!   Try it and report back.
Barbara Stanny
The leading authority on women & money
www.barbarastanny.com

 

May 7, 2009

Is Now The Time To Ignore Your Debt?

Posted by barbarastanny under Barbara Stanny, Economy, Finance, Money, Savings, debt problems | Tags: , , , , , |
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I’ve been in a tizzy ever since Suze Orman changed her tune.  Last month, the ubiquitous financial guru stood before the masses and told them to “listen up”,  stop paying off debt,  and put every extra penny into savings.

credit card debt

Now,  let me make this clear.  I’m a HUGE advocate (borderline obsessive) for adequate savings.  I personally have way more than 10 months (Suze’s barometer) socked away in cash.  But to say to everyone: “only pay the minimum due on your credit card balance and instead make it your top priority to build as much of an emergency cash fund as you can.”  Huh????  That pronouncement made my head spin!!

Then I read my favorite financial columnist (the Web’s favorite too!),  Liz Pulliam Weston,  on msn.com.  Liz did what she always does for me — made sense of what sounds complicated,  or in this case,  crazy.

http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/why-suze-orman-is-wrong-again.aspx?page=1

Liz made a critical distinction Suze apparently overlooked.  Such a severe approach only applies to those in dire straits.  As Liz explained,  the only times when “paying the minimum or,  preferably,  just a bit more is the best of bad options” if:

  • You’ve been or are about to be laid off.
  • You’re on the financial brink.
  • Your accounts have already been frozen.

For everyone else,  Liz advised, “a more balanced approach might be the best course.” As she astutely points out,  it could take years to build up a big bundle in savings.  Dumping repayment plans for a lengthy period leads to unnecessary interest,  damaged credit scores,  and possible victimization by lenders.  Instead,  Liz  wisely suggests:

  • Stay the course. Continue paying down credit card debt,  but look for extra expenses to cut to pad your emergency fund as well.
  • Open an escape hatch.  If all your credit cards are with the same issuer, consider getting a card or two from different issuers so all your credit isn’t in the hands of one lender.
  • Monitoring your accounts.  Many lenders are trimming credit lines with little notice,  so checking your credit limits at least once a month is good practice.”
  • Pushing back.  Card issuers are hoping you accept their changes without a fuss,  but if you have good credit scores (FICOs of 720 or above),  you have some leverage and should be able to get them to rescind their decisions or take your business elsewhere.

Moral of this story: Beware of experts touting one approach for all.  Cookie cutter solutions can be harmful to your financial health!

 

January 29, 2009

Ready to $tart getting $mart???

Posted by barbarastanny under Barbara Stanny, Earning, Economy, Finance, Invest, Money, Savings, Support, debt problems | Tags: , , |
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Does this sound like you?

“It’s a new year! I’m finally going to tackle my finances.  Yep, I’m really ready to get smart about money. Well…sort of.   I mean, I do want to learn…but it just seems so overwhelming.  Where do I start?”

Start with this article: http://www.creditcards.com/credit-card-newsReading up/savings-money-club-comeback-1264.php. Not just because I’m in it! The author, Dana Dratch,  does a fabulous job of explaining how to make  financial education fun! FUN????

Yes, FUN!  Invite some friends, bring some food, and start a Money Club.

“The idea has been around for years,” Dana writes. “A small group of friends, co-workers or, in some cases, complete strangers meet regularly to polish money skills, discuss money challenges and set concrete goals. Don’t confuse money clubs with investment clubs, in which members focus on investing skills and may even make investing decisions as a group or pool their money. “

Dana also interviewed Ginita Wall, the co-founder of www.wife.org (which I believe is the best financial education site on the internet for women) and a major proponent of money clubs. Ginita created the site; www.TheMoneyClub.org, where you can download a  free Leader’s Guide for “individuals interested in starting a club, and a menu of lesson plans for meetings.“

Money clubs are exploding in popularity. I’d love to hear from anyone who’s in a money club…got any tips or advice for the rest of us?

 

December 12, 2008

Achieving Financial Success, In Spite of Fear (yours and everyone else’s)

Posted by barbarastanny under Barbara Stanny, Business, Economy, Empower, Finance, Money, debt problems | Tags: , , |
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Have the headlines got you spooked?

I Can Do This !! Let me introduce you to my 2    Laws for Financial   Success…In Spite of Fear  (yours and everyone else’s!)…(drum roll please!)…expressly for the faint-hearted and other victims of the current fear mongering.

1.  Stanny’s Law of Resistance—the amount of resistance you experience in any endeavor is directly correlated to the amount of power and pleasure available on the other side.

2.  Stanny’s Law of a Lousy Economy—no matter how bad the economy, there will always be people who are prospering.

The following email demonstrates these laws in action.   The writer, a seminar graduate, ended up in the hospital after the first day of a 2 day seminar!  Even though she was in utter fear and the economy sucked big-time, she tenaciously respected Stanny’s Laws!  Look what happened:

Dear Barbara,

I took your Overcoming Under Earning Workshop last fall.   I am the woman who spent the night (after the first day) hooked to an IV in the emergency room.   My body was physically rebelling the changes that were taking place  in  me emotionally in your workshop!   As crazy as it seemed, I forced myself back for the second day… knowing I had every excuse not to launch deeper into more of my financial  mud pit.

Thank goodness I did… I am very happy to report that despite the economic upheaval of our Country I am better than ever.!!!! Since I saw you I have made some real tangible changes.  First off, I got the courage to go back to court and get a child support adjustment… this was something that I had been avoiding for 9 years… results a 233% increase!!!! Long overdue, obviously.

Even better than that, I finally know my financial future is completely in my hands… and that is incredibly empowering.   I now know that I control my financial future.  (I feel excited just writing this, and even more excited living it!!! )  I am working “smarter not harder“.

I have adjusted my business focus to accommodate the economic environment.  I now do what I had been doing full time, part time, and am working more full time with my internet brokerage company.  The  shift in focus has given me great financial success, as a matter of fact by staying on the course I am on  now, I am estimated to triple my best income  ever within 12 months!!!  Wow, didn’t even know what leverage was about a few years ago.

Just wanted to send you my  success story and express my thanks   for you, and the door that you helped me open in my life!

The moral of this story: never ever let fear or resistance stop you from going for the gold… regardless of what’s happening ‘out there’ or going on ‘in here’ (i.e. your head).  Resistance is simply a clear indication of what you need to do next!!

 

October 8, 2008

Is The Sky Really Falling? Messages from the Market

Posted by barbarastanny under Barbara Stanny, Finance, Money, Support, debt problems, wealth | Tags: , , , , |
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Unless you’ve been stuck on a dessert island, you’ve probably noticed that the financial industry is on one hell of a roller-coaster ride.   But according to the rule of the roller coaster, the only ones who get hurt are those who jump off in the middle.

This is not a time to panic.  This is a time to pay attention.

I believe scary times carry significant lessons. This financial mess has some urgent messages for us all. It’s as if the Universe is shaking us by the shoulders, desperately trying to get our attention, urging us to do things differently.

My advice: use these economic breakdowns as a catalyst for your own financial breakthroughs. If you can reap the wisdom in the chaos, there’s a wealth of knowledge to be gained. Here are a few Messages From the Market :

1. Never confuse ignorance with safety – This is not a time to ignore money and pretend everything will be ok. That’s what got us into this mess in the first place. Complacency without comprehension is particularly perilous.

The message from the markets: educate yourself financially…now!! (www.barbarastanny.com)

2. Never buy anything you can’t afford – Debt is bad. Debt is dangerous. When debt starts spiraling out of control, as it always does, it takes everything down with it.

The message from the markets: stop using credit, get rid of your cards, and create a plan for paying off outstanding balances. (www.nfcc.org)

3. Never invest in anything you don’t understand – Not even the experts understood the mortgage backed securities they were gobbling up. (www.betterinvesting.org)

The message from the markets: as your mother probably told you, just because everyone else is doing it, doesn’t mean you have to too!!!

4.  Diversification is paramount – Plunging markets tend to sink all ships. Those who bounce back fastest, however, have money spread out among different sectors, company sizes, industries, and countries.

The message from the markets: call your advisor and re-balance your portfolio. No advisor? (www.cfp.net; www.nafpfa.org; www.financialpro.org)

5. Trust your gut – If something is too good to be true, rest assured…it is, despite what the supposed experts are saying!!!.

The message from the markets: take your power back.

6. It’s a sale! – The media knows…fear sells. Don’t buy in by selling out. Instead, start scouting for bargains.

The message from the markets:   “When a recovery comes, those who were smart or lucky enough to buy at the bottom will do very well.” Wall Street Journal  (10/6/08) (www.wsj.com)

The markets will eventually go back up. And when they do, you want to be well positioned to benefit…and geared up to weather the next inevitable downturn.

 

July 24, 2008

Are You In Over Your Head?

Posted by barbarastanny under Barbara Stanny, Finance, Money, Savings, debt problems | Tags: , , , |
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Denial is so tempting, especially around money. But oh so dangerous. That’s why I urge you to take the Five Signs Test, featured in this Yahoo article: Five Signs That You’re Living Beyond Your Means. http://finance.yahoo.com/banking-budgeting/article/105396/Five-Signs-That-You’re-Living-Beyond-Your-Means

“If you find that one or more of them apply to you,” the article warns, “it is likely time to reevaluate your spending and work on a long-term financial plan. Recognizing the problem is the first step to finding a solution.”

Here are the 5 Signs:

Sign No. 1 – Your Credit Score is Below 600

To find your credit score is, contact (TransUnion, Equifax, Experian) for a copy of your credit report.

Sign No. 2 – You are Saving Less Than 5%

Best to sock away as much as possible, but most financial experts suggest a minimum of 10% of your gross income.

Sign No. 3 – Your Credit Card Balances are Rising

If you’re paying only the monthly minimum, consider that a big red flag. “A person with $5,000 in credit card debt that makes the minimum payment of just $200 per month will end up spending more than $8,000 and take almost 13 years to pay off that debt.”

Sign No. 4 – More Than 28% of Your Income Goes To Your House

Why 28 % ? Because, experts say,“ this is the rate at which the average person can get by, make their mortgage payments and still enjoy a reasonable standard of living.”

Sign No. 5 – Your Bills are Spiraling Out of Control

The solution? Start slicing and dicing your expenses. Figure out what you spend each month and decide where you can cut. “Some of the best places to find savings include; your telephone bills (cell and land line), your utility bills (turn off the lights, and don’t run the air conditioning if nobody is home) and your entertainment expenses (you could stand to dine out less and to pack a lunch for work).”

You owe it to yourself to answer these questions honestly… any thoughts?

 

July 11, 2008

Women & Investing

Posted by barbarastanny under Barbara Stanny, Earning, Finance, Invest, Money, Savings, Support, Women, wealth | Tags: , , , , , , , , , |
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If you’ll excuse me, but I’m frustrated and I need to vent! Yet another study has come out that tells us, according to an article in US World & News Report: “financial institutions are failing to connect with female customers, a group that will soon control 60% of the wealth in the US.” Duh! http://articles.moneycentral.msn.com/SavingandDebt/ConsumerActionGuide/HowBanksShouldTalkToWomen.aspx

Allianz Life Insurance revealed what every study for the past decade has discovered: most women want to learn about retirement planning and investing. But “(Women) are telling us that materials out there are difficult to understand and that they find them boring. Some even compared them to reading a foreign language,” says Sherri DuMond, vice president of marketing solutions for Allianz.

This is news? Maybe to the industry. Certainly not to women.

The problem is that financial firms simply respond with more of the same materials, but couched in what one advisor in the article called “female-friendly metaphors.” For example: “Updating your 401(k) every six months…is like putting your winter clothes away in the summer, she says, and making stable investment choices is like purchasing your first black or blue suit.”

If the financial industry asked for my advice (and no one has), here’s what I’d tell them.

It’s time to get down to the nitty gritty! Don’t just focus on the facts of investing. Get personal. Dig deep. Talk about her fears. Explore her resistance . Delve into the real issues, like family messages and cultural conditioning. I always say doing the outer work without paying attention to the inner work only perpetuates the status quo.

Am I all alone here? Or am I being foolish to think that if financial advisors were trained appropriately, they could learn to actually talk about emotions? Let me hear from you!

 

July 1, 2008

Do You Think Like A Wealth Builder, or You More a Sex And The City Kind Of Girl?

Posted by barbarastanny under Barbara Stanny, Finance, Inspiration, Money, Relationships, Women, wealth | Tags: , , , , |
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Do You Think Like a Wealth Builder, or Are You More a Sex and the City Kind of Girl?

I was reading a blog the other day, when one line really caught my eye:

“I can SEE the difference between the mindset that simply wants to make money and the mindset that is more focused on creating and building wealth.” (http://witoo.wordpress.com/2008/06/14/making-money-versus-building-wealth/)

I love the way the blogger described her epiphany! Indeed, there is a HUGE difference between making money and creating wealth. And it really is a matter of mindset. This was my biggest surprise when I interviewed six-figure women. These women earned more than most people on the planet, yet very few of them were wealthy. Without question, their mindset is what made the difference. And it makes sense: how we think determines the choices we make and the results we create (i.e. wealth or no wealth)

Let me demonstrate:

The Make-Money-Mindset thinks like this: “I want to make money because the more money I make, the more clothes I can buy, the more trips I can take, the more wining and dining I can do, and the more fun I can have.”

The Create-Wealth-Mindset thinks like this: “I want to make money because the more money I make, the more I can save and invest for the long term. “

Do you know what separates between those mindsets? Two words. Instant gratification. It’s the difference between snapping up those Prada shoes–which you have to have because they go perfectly with that Juicy Couture dress you just bought –and depositing that money straight into a mutual fund.

The previous example was inspired by the recent movie, Sex and The City, which is clearly the story of 4 women who don’t understand the meaning of delayed gratification.

Mind you, I’m not suggesting self deprivation. Saving money doesn’t mean sacrificing fun. You can always pocket a portion of your earnings, say 20 bucks, and take in a movie. In fact, go watch Sex and The City, and gloat about how much smarter you are!! (No, Carrie is NOT smarter for marrying a rich man. Read my book, Prince Charming Isn’t Coming…you’ll understand why!!!)

 

June 16, 2008

Finding A Financial Professional

Posted by barbarastanny under Barbara Stanny, Earning, Finance, Invest, Money, Support, Women, wealth | Tags: , , , , , , , , , |
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Those of you familiar with my work know this about me: I’m a big fan of using financial advisors.

The reason: we women are so busy, many of us of don’t have the time, interest, or knowledge to manage our own money (and do it well). Of all the women I’ve interviewed, the ones with the highest networths didn’t necessarily earn (or inherit) the highest income. But the whopping majority did work with financial professionals.

The challenge: how do you find a trustworthy financial advisor?

The strategy: Ask for referrals from people who are happy with their advisors. Or go online to find names of advisors near you. Try these sites:

www.napfa.org — National association of Personal Financial Advisors

www.garrettplanningnetwork.com — the Garrett Planning Network of financial advisors who work for an hourly fee.

www.cfp.net — the website of Certified Financial Planners

The solution: Resist the urge to sign up with the first advisor you meet. Interview at least 3. Ask questions such as these, then go with your gut instinct:

1. Would you tell me about yourself?

2. Do you specialize in certain types of investments?

3. Who are your clients?

4. How do you charge for your services, and what costs might I incur working with you?

5. How often do you communicate with clients, and how often might I expect to hear from you?

6. Have you ever been involved in any lawsuits, arbitration, or disciplinary problems?

7. Is there anything you want me to know about you that I haven’t asked?

Need more help? I’ve written a booklet filled with great advice: Finding A Financial Advisor You Can Trust. You can order it on my website.

I’d love to hear your tips about finding an advisor.

 

May 5, 2008

Questions about Financial Advisors

Posted by barbarastanny under Barbara Stanny, Empower, Finance, Relationships, Support | Tags: , , , |
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I’m a big believer in working with financial advisors. But I’ve noticed that most women have a lot of questions about working with professionals, and don’t always know how to find the answers.

Here are some of the most frequently asked questions I get*:

Q. What if I inherited financial professionals from my family and don’t want to continue working with them?

A. If you don’t like their personality, values or investment style, find someone else. Remember, it’s your money now and you need to do what is right for you. You may find it more difficult to dismiss advisors who are old family friends but, if you tell them honestly that you want to choose your own advisor, most likely they will wish you well.

Q. Do I have to sign a contract with my financial advisor? I’m afraid of getting myself into something I can’t easily get out of.

A. You will have to sign a contract with any investment advisor or brokerage firm to do business with them. The inviolable rule, of course, is never to sign any document you do not thor­oughly understand. Always take your time and if any point is unclear, ask questions. For extra protection, you should review the contract with a knowledgeable friend or attorney before signing it.

Q. Every time my advisor calls suggesting that I buy something, I think to myself does she really believe this is a good investment or is she just after a commission?

A. If you feel unsure about the motives of an advisor working on commission, you need to ask yourself: Do I generally suspect people are trying to take advantage of me, or is there something about this particular advisor that makes me uneasy? If you tend to worry that people are more interested in your money than in your welfare, use this as an opportunity to examine when those feelings are justified and when they aren’t. If you think the problem is with the advisor, discuss your concerns with that person, and then review the reasons for your concerns and the advisor’s responses with a trusted friend or professional. And, of course, you can switch to a fee-only financial planner or a wrap account that’s inclusive of all fees.

Q. What if my advisor pressures me to buy something?

A. If someone tells you, “Buy this now—the price will never be this low again,” or, “This stock will hit 100 in six months,” your antennae should go up. Never buckle under pressure. Think seriously about changing advisors. As one money manager put it, “There’s always another stock and there’s always another day.”

Q. The value of my portfolio is going down instead of up, and I think my broker is at fault. Is there any chance I can recover my losses?

A. Yes. If your broker or other investment advisors have recommended unsuitable investments and failed to explain their risks, churned your account, or bought securities without your permission, you can file a claim against them. Your advisor is generally required to settle the dispute by arbitration. I suggest you discuss your case with a lawyer or other professionals who represent clients in disputes with brokers.

Q. What if I want to change advisors?

A. Before you walk away, give your current advisor a chance to respond to your complaints. Sometimes just hearing the other person’s explanation can clear the air and preserve a working relationship. If, after you’ve talked you still want to take your business elsewhere, find a new advisor who will arrange to transfer your investments for you. Then tell your advisor you want to close your account. Switching brokers should be a simple process, especially if all your holdings are commonly traded stocks, bonds, and mutual funds that are easily moved from one brokerage firm to another. Simply fill out a form listing all the investments you held at the old brokerage firm and give it to the new broker who will take care of everything else. If you’re changing money managers, the process can be slightly more complicated. Often money managers will give you a pro-rated refund and retain a fee covering 30 days.

For more information, check out my booklet: Finding A Financial Advisor that You can Trust

 

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