Women: 5 Steps to Get Money House in Order

If you're self-employed, an entrepreneur or career oriented you've got to get your money house in order.  I know, I know, it's nearly Christmas and you're crazy busy. But, I want to plant an important business seed for 2012 because it'll be here in ten seconds.  

In order to make the most money, have less stress, and achieve your full potential (financial is part of that) and have fun along the way, here are 5 Money things you need to do in 2012.*

1) Get Your Money House in Order:  Assess what's working well financially and what the challenges are. For example, let's start with the basics.  Are you making enough money? No? What do you think/feel are the 3 main reasons for this? Be careful about blaming the economy. I know it's a factor, but I also know many businesses that are booming - mine included.

2)  Know your Money Story: Especially if you're struggling to get to the next level financially and you keep bumping up against the same obstacle or stuck place. I can guarantee you that there's a hidden emotional piece in your history. Yesterday, while going through The Money History with a client, she realized that her "make do and settle" pattern came from resistance to becoming like her mother. A huge ah-ha.

3) Write down your goals for 2012. If you're self-employed and you have a goal of earning $25,000 or $50,000 net income a year, how many clients will it take each week and month to bring in that amount of money. The more specific you are (a spreadsheet is handy) the easier it will be to achieve. Look at your goals each day, visualize the end result as if it's already happened. Then take action each and every day.

4) Realize that you have a RELATIONSHIP with money. As Suze Orman says and I'm paraphrasing: "Women don't show the same care to their relationship with money, as with other relationships, because they have a dysfunctional relationship with money. What are your money dysfunctions: Overspending, debt, avoiding, underearning, not respecting your money so you don't take good care of it?  Identify THE major dysfunction and conquor it this year.

 5) Grow your Wealth: One of the biggest money mistakes I see women make (and I used to also) is to not grow their wealth. Women give too much time, energy and MONEY away to others - primarily children. If they don't they feel guilty. More money comes to us as we learn to respect it, take care of it, grow it. If you haven't started a retirement account or savings account (for emergencies - $1,000 minimum) make it a goal to start this year.

 *If you're in Modesto or close by check out my 2012 4 hour Business Strategy Session for Women). I do this workshop every year and at the end we do a Vision Board with your Goals and Action Steps for 2012)

Money Doesn't Just Talk - It Screams

“Money doesn’t just talk, it screams.”  Bob Dylan

Americans are waking up to the fact that the super-wealthy have been ripping off the other 99% of us.  Now that we’ve noticed, we’re pretty angry about it. Hence, all the Occupy Wall Street factions. Before this realization we were blaming ourselves for our money problems or in denial, or waiting for things to turn around. But there’s something about all those millions of folks losing their homes and jobs that has finally got our attention.

I don’t know if America is still the land of the free and home of the brave. But we certainly are an economically unequal society. Quite. According to the CIA reported in the NY Times, *“the U.S. is more unequal a society than Tunisia or Egypt.” Ow!

Did you know that the *400 wealthiest Americans have a combined net worth greater than the bottom 150 million Americans?  That from 2002 to 2007, 65% of the economic gains went to the richest 1%?

Financial stress is affecting 75% of Americans according to the American Psychology Association. But, inequality is not just stressful, it’s bad for business. A study shows that of 65 industrial nations, the less equal countries experience slower growth.* That’s us folks. From the 40s to the 70s equality and growth were strong in America. Since the 70s a downward spiral.

I’m hopeful though. When Americans finally wake up – remember the 60s – we WAKE UP. It’s time to take the anger we’re experiencing at the banks and corporations and channel it into options for the greater food, and I don’t mean stock. Anger can fuel creativity, action and massive changes. After all, our collective scream got B of A’s attention.

(*NY Times, Oct 16, 2011, America’s Primal Scream)

Wall Street Bankers Raped World Money System

The definition of rape is usually associated with a woman being physically forced to have sex. However, it is also "an act of plunder, violent seizure or abuse; as in the rape of the countryside," or in this case the rape of our world money system. Though hundreds around the world invested in the credit default swap market, 15 Hedge Fund managers went ALL IN and placed enormous bets that American finance would go up in flames. In other words they bet that the easy finance house of cards bank created would collapse and they could cash in. That's exactly what happened. Even though these financiers were betting against us, a few tried to warn Bear Stearns and later the goverrnements about what was coming.  But, the ostrich phenomenon kept everyone from listening, or most importantly, taking action, until it was too late.

The very sad and still scary part of this story is that the fall is far from over. The world economy has never had the kind of debt it now has. For example: in 2002 world debt went from $84 trillion to $195 trillion. To give you some understanding of the numbers: Ireland's debts were more than 25X it's tax revenues. Spain and France 10X annual tax revenues. No where to go financially but down. Iceland, (I'll blog separately about the lessons from that country) ended up with debts amounting to 850% of their GDP. The U.S. 350%.  Yow!!

If you haven't understood what exactly happened to put the money world in the predicament we're in, then read Michael Lewis' "Boomerang." He concisely explains the series of events that led us to the precipice we're on. Events that were predicted back in 2004. Here's a quick summary: In 2004 Wall Street created the credit default swap which enabled investors to bet against the price of any given bond - to "short" it. This is like default insurance on another person's investment. 

The Solution to our world financial crisis? No one really knows. But it's interesting that the "Occupy Wall Street" Marches have sprung up and people are waking up to the fact that SOMETHING different needs to occur with our financial system and the way corporations plunder while everyday folks suffer the effects. What do you think?

The Secret Language of Money

If you've been reading this blog you know I've been expanding my study of the subject of "money" this year. We need to know how to manage our money beyond the nuts and bolts of budgets and retirement planning. Do you know why you have trouble getting past certain life long money patterns? To understand what's drives the bus of your challenging money behavior here's a story from "The Secret Language of Money" by David Kreuger MD.  Two anthropologists went to two separate yet identical ape colonies to live and observe for a year. After the anthropologists finished their year they compared notes. One had been accepted and assimilated into the colony, the other never was. They couldn't understand why - until one anthropologist admitted he had kept a gun with him. He never used it or showed it, but at some level, he knew it was there. The gun kept him from fully committing - it was his out.

Now, how does the anthropologists hidden gun relate to the story we make up and play out with money. Dr. Kreuger says our money stories are "the subconscious tale you tell yourself about who you are, what money means to you and what it says about you. Our money story isn't only about money. It's about everything." (Kreuger)

What does your money story say about you? Ask yourselves these questions:  1) What's the greatest annual income I can reasonably expect to earn?  $_____   2) What is the greatest annual income my money story will allow me to have?  $_____   Until you become aware of the story that lives underneath the way you operate with money, nothing will really change. Oh, you can create a budget, or tinker with affirmations, but I know from experience that until there's a deep inner shift created with awareness and new behaviors and practiced over time, your money story can't really change.  

Women - Put Your Big Girl Money Pants On!

Do you stick your head in the sand when it comes to your money problems? It's a common tendency. We think we can make something go away if we don't think about it. This is magical thinking which is how children operate. It's sad to say that sometimes we grown ups are so afraid of our financial circumstanceswe treat our money like a child would.  I get it - I have been there done that. But, it's time to put your big girl money pants on and look at exactly what's happening with your financial situation.

First, face the fact that your money problems will not get any better until you start dealing with them. Second, look at exactly what your bills are and your income. Then define your options. For example, a woman I spoke with this week has overwhelming credit card debt - not unusual these days.  I advised her to see a bankruptcy attorney to get advice about whether filing is in her best interest.  Another women I spoke with is just barely putting food on the table and she has teenagers that want new clothes. Understandable, but.... Teenagers can be part of their own solution. Don't give them all the gory financial details but let them know there isn't money for extras and if they want new clothes they can babysit, (I printed out flyers and distributed them in my neighborhood when I was 15), or yes, even work at a fast food restaurant. 

Women are smart, creative and full of incredible potential. If you know of a woman that's really good with her money, ask her to give you some mentoring help or support. Read to increase your awareness about how you feel about money, what your behavior patterns and beliefs are that support or limit you, and to know how to manage your money. Books I recommend include Suze Orman's Women & Money, Lynne Twist's, The Soul of Money, Deborah Price's Money Magic and Chellie Campbell's The Wealthy Spirit.  We women have got to take care of ourselves and taking control of our money is an important way to put those big girl pants on!!

Money Lessons 101

What kind of financial education did you get as a child or young adult? For most of us, it's the school of hard knocks and we make lots of money mistakes by the time we're thirty or fifty. Those of us that are smart take a class or read a few books about money. But, reading a book or taking a class doesn't get at those unconscious or below the surface memories, that fuel our money problems. 

When we're children we observe what's happening in our families around money and make up stories to understand and make sense of what is going on around us. Unfortunately, this is not the best way to comprehend the world of money. The Iceberg theory states that 10% of our mind is conscious and the rest is subconscious or under the surface. When your money buttons get pushed and you react instantly - for example, when your wife comes home with a shopping bag from the mall, but hasn't paid the bills yet, that may plug into a childhood memory.

To understand more deeply your current relationship with money takes some exploration. Deborah Price, in her book Money Magic, describes the Mother/Father Mirror Exercise. She suggests you get into a relaxed, "stream of consciousness" state (sit quietly, take a few slow breaths, relax) and allow pictures or images to form of your parents or guardians. Start with your mother and as you get a clear image of her make a list of characterstics, energies or attitudes you attribute to her around money. Then do the same with your father.

Now, gently ask these questions:  Which parent do I most mirror in my relationship with money? What aspects do I consider positive or negative? Which characteristics do I embrace or appreciate?  The negative characteristics are often the unconscious money aspects we either deny or avoid. They're also the ones we tend to most react to in our partner. How can you allow this new awareness to help you in your current money situation? As we gain new insight it can soothe financial stress and lead us into transforming our patterns, habits and beliefs with money.