Today I went to a talk by Ruth Hayden, which was titled “Reaching Your Dreams: How Women Can Use Money to Take Charge of Their Lives.” Ruth is the author of a few money and retirement books, including “How to Turn your Money Life Around: The Money Book for Women.”
It was a great talk about women, money and spending. Here are some of my notes:
2/3’s of all women earn less the $30,000 per year!
1. Invest in self. Develop careers. In a career you earn more money, about 77 cents on the dollar
-women with a BA earn 40% less then a man with a BA
2. Need to turn more of the care giving responsibility over to men.
-most women are now the sandwich generation…taking care of kids, parents and grandparents (hence they are sandwiched between the generations)
-you can make good money and make a difference in the world
-85% of working moms said they felt guilty that they did not spend enough time with kids/parents when at work and then when they are with the kids/parents feel guilt about not spending more time with the work. 0% of men say they feel any guilt about this.
-women need to learn to manage the guilt
-need to learn how to be financial secure and do good in the world/be a good wife/mom/daughter/sister
-dont become superwoman (it does not work)
-need to change the model for being a successful woman
-prioritize what is important
-push things off your plate by saying ‘NO’
-you need to put away money for your retirement even if you are home with the kids and not working
3. Change your beliefs
-move past discomfort and negotiate a higher pay
-not just a title change or ‘you did a great job’ (words of gratitude)— you need money
-change your belief of your value
-read book ‘women dont ask’
-women accept appreciation instead of pay increases
-women want to be liked/approved of and then women move into the work place with this attitude
-you cannot spend or save verbal approval
4. Get your spending under control
-savings are money you have not spent
-take 10% off and leave it alone. Change your life!
-change your beliefs on what you spend your women on
-most women spend money on looking better for self/kids/husbands and also spend more money on homes
-female socialization – buying cloths/food/on your hair/eating out
-we buy stuff that make us feel good
-buying equals power and control
-women by little stuff frequently, whereas men buy bigger stuff less frequently (neither way is wrong or right, its just the way we are)
-what drives our beliefs, drives our spending
-does the money spent get you closer to your dreams?
-does your money represent you and your dreams?
-challenge socialization on what we spend and how much we spend
-1 in 3 women have more credit card dept than they have in retirement!
5. Embrace the aging process and develop wisdom
-wisdom-as you get older the filters come off and you are feel free to say what you want
-you dont want to be 70 or 80 and living in poverty
-take care of the 70/90/100 year old you by saving for retirement (your husband will be dead and do you really think your kids are going to help?)
-working until you die is not a plan
-do not say you will start saving after your put the kids through college, by then it will be too late (once again do you really think your kids are going to be helping you out? i think not)
-dont trust the retirement that is in someone else’s name (i.e. your spouse). what happens if they die or leave you?
-you need your own retirement and a lot of it
-dont play Russian roulette with your financial life or the life of your 70/90 year old self!
-financial safety is not that complicated: you do not make enough money, you are paying (emotionally and financially) for too many people, and you dont spend wisely
-invest in businesses (stocks, mutual funds, investments)
-invest in real estate (your home)
-time grows money
-increase the amount you put away every 6 months by 2%. take it off the top. you will never miss it
-dont cash out your retirement every time you change jobs, put it away in an IRA or other retirement account. you will need it in the future
-dont be afraid of volatility (values and the market go up and down)
-if you want your money to grow, you must accept the fact that it will go down. do not sell. buy and hold for the long haul
-women are better investors then men. men’s egos make them sell when they should not
-dont be afraid of the highs and lows of the market. dont make your decisions based on your ego
-you still have the same about of ownership if the market goes down in value. dont sell.
-dont let the fear flue talk you into selling
-strategize so you dont loose- dont place all your money in one place. diversify. go out of your comfort zone (invest in mutual funds, bonds, individual stock, large companies, small companies, international, bonds, etc)
-your 80 year old is getting closer every day
-create financial security now for your 80 year old self (remember most people will not retire at 62)
-money done well is boring