The Secret to Investing Wisely–Understand the Investment Pyramid

Written by Barbara Huson

Let me introduce you to the Investment Pyramid. Understanding this pyramid was a game changer for me.

Decades ago, a wealthy family friend urged me to invest in a Limited Partnership, calling it a “an exciting opportunity.”

I didn’t know that a Limited Partnership was illiquid and I couldn’t sell my shares, even as I watched the company go bust.

When I told my accountant this story, he drew a triangle, divided it into 4 levels, explaining this represented the whole world of investing. My mistake was starting at the top.

Wealth Building Made Simple…Very, Very Simple!

Written by Barbara Huson

You’d love to be wealthy, right? But then immediately reject the idea as ridiculous. Let me assure you, creating wealth’s a lot simpler than you think. And you don’t need a lot of money to start.

What you do need is enough discipline to obey The 3 Rules of Wealth:

1. Spend Less—never spend money you don’t have. If you can’t pay off your credit cards in full each month, stop using them.

2. Save More—pay yourself first. Ideally, 10% of your income goes straight into savings. But $10 a month is totally fine. The idea is to get in the habit of saving.

3. Invest Wisely—put at least a portion of your money into assets will grow faster than inflation and taxes take it away, like stocks, bonds and real estate.

All 3 are critical. But Investing Wisely is how wealth is created. It’s also the rule that stymies most people.

Observations From a Financial Therapist: Money Problems Are Never About Money

Written by Barbara Huson

Let me give you my perspective on why you’re having money problems. This comes from 25 years working as a Financial Therapist.

You know that financial difficulty you’re facing—big or small? It’s about far more than money. It is, in truth, the call of your Soul trying to get your attention.

This problem actually provides you with a powerful opportunity for personal transformation. But what begins as a whisper will, if ignored, grow increasingly louder.

When you finally decide to face your difficulty, you begin the process of becoming all you’re meant to be.

Confronting and solving a Financial Challenge is what opens the door between the life you now live and the life you could be creating. On the other side of that door lies your power.

Rewiring Your Brain for Higher Earnings

Written by Barbara Huson

In my book, Overcoming Underearning, there’s a story about a snail climbing a cherry tree in the middle of winter. A beetle looks down, spies the snail slowly inching up the frozen bark, and cries out, “There ain’t no cherries up here.”

Unfazed, the snail replies, “There will be by the time I get there.”

That little snail offers us a potent formula for financial success. Think big. Act small. And, no matter what, never, ever stop until you attain your goal.

The idea is that if you do something everyday, no matter how small, no matter how brief, you will eventually arrive at your destination.

But it’s not just the practical, external steps that matter. The inner work is a critical factor.

Willpower Won’t Work! Rewire to Spend Less

Written by Barbara Huson

You swear, starting today, you’re going to curb your spending. And you really mean it. Until….

You spy an online ad for this adorable summer dress that’s to die for. Later, you flip through the Costco catalogue and that Vitamix Blender you’ve been eyeing is on sale.

Without thinking, you whip out your card, make your purchase and you feel great. Until the bill comes. Then you remember your vow and beat yourself up for not having more will-power.

BUT WAIT! According to the latest research, all the will power in the world may not be enough. Blame it on your brain.

A recent study did brain scans on people who planned to buy with credit cards and those planning to use cash. They discovered a notable disparity in brain activity between the two groups.

“Buying on credit doesn’t just ease shoppers’ inhibitions,” reports the Wall Street Journal. “It actively encourages purchases.”

The Conversation No One Wants to Have. But You’ll Be Sorry If You Don’t.

Written by Barbara Huson

This year would’ve been my father’s 95th birthday. It got me thinking about the day I went to my mother, wondering what my Dad, who was seriously ill, had planned for her after he passed.

I was terrified to ask her that question. When I finally screwed up the courage, she made it abundantly clear: this was not a conversation she wanted to have.

I made it even clearer: avoidance was not an option. Here’s what happened next:

1. We had “The Talk.” I had Mom sit down with Dad and look at all their financial documents: bank statements, investments, estate planning, etc. This was not, by any means, an easy conversation. Nerves were frayed. Mom glazed over. Dad lost patience. I kept scratching my wrist (a nervous habit) until it bled. But by the end, Mom knew where every penny was and what arrangements he had (and hadn’t) made.

2. We assembled “ The Team.” My Dad was very much a do-it-yourselfer. Mom needed the support of professionals. First my sisters and I found an estate lawyer and together my parents created a very good, tax efficient estate plan. Then we helped her find an investment advisor and a CPA. She still meets with her team on a regular basis to this day.

The Trinity of Trust

Written by Barbara Huson

Years ago, I trusted my husband with my money. He was a stockbroker after all. But, alas, he lost almost everything. After our divorce, I was terrified to trust anyone again.

Then at some point it dawned on me. I couldn’t just ignore money. I needed to start trusting myself. But how? I was financially clueless.

If you’re in a similar situation, let me introduce you to what I’ve come to call the Trinity of Trust. It’s how I began the journey of reclaiming my power and taking financial responsibility

As I spent time connecting with each point on this triangle, I found myself building a firm foundation of trust in myself, in others who were trustworthy, and in the my Higher Power.

Are You a Victim of Financial Abuse? 10 Red Flags

Written by Barbara Huson

Financial abuse is a serious form of domestic violence, but no one ever really talks about it.

While financial abuse is devastating, many, like me, may be totally unaware it’s happening to them.

In the beginning, financial abuse can be so subtle it’s easily misinterpreted as a loving gesture.

“I don’t want finances to stress you,” my first husband would say to me. “Let, me take care of the money and I’ll give you what you need.”

However, as in my case, the abuser’s efforts to control will, in time, escalate into intimidation, threats of violence and often, physical harm.

How do you know if you’re a victim? Here are 10 Red Flags. Read them carefully and circle the ones that apply to you:

Your partner refuses to talk about money. They get defensive, angry or accusatory.
Your partner goes on spending binges, buying expensive items you really can’t afford.
Your partner racks up debt on your credit card.
Your partner frequently gambles, at the casino, the race track, or in the stock market.
You get frequent calls from creditors, which your partner dismisses or assures you everything is ok.
Your partner keeps saying you don’t have enough to buy certain items, which doesn’t make sense based on your incomes.
Your partner uses money to control you or restricts your access to money.
You question their financial decisions, and they immediately turns the table and makes you wrong.
You notice how often you excuse, justify, rationalize their behavior to others and yourself.
Your gut tells you something is wrong.

If even one of these red flags feels even remotely familiar, I urge you to call the National Domestic Violence Hotline at 1−800−799−7233 (SAFE). They are there, 24/7, to give you the help, information and resources you need.

Have you been affected by financial abuse? Share in the comments below. Your story could help someone else.

The Timeless Wisdom of Wealth Creation

Written by Barbara Huson

The year is 1926. Henry Ford announces the 40-hour work week. The first SAT test is administered. And the notorious gangster, Al Capone, is terrorizing New York.

But the real news is this. The Richest Man in Babylon by George Clausen—perhaps the best financial book ever written–hits the shelves.

This quaint parable, filled with timeless wisdom, became a classic because it demystifies wealth building like nothing else I’ve read.

When we first meet the richest man in Babylon, he is telling friends the secret to his fortune.

“I found the road to wealth,” he tells them, “when I decided that a part of all I earn is mine to keep.”

The men look at him incredulously. “Is that all?” one asks, insisting that of course everything he makes is his to keep.

The wealthy man just shakes his head. “You fool, you pay everyone but yourself,” he cries, pointing to the clothing sellers, sandal makers, and wine merchants.

Instead, the rich man counsels them, learn to spend less and pay yourself first. “For every 10 coins thou places in thy purse, take out for use but nine.”

This is the way that Wealth Builders live—a part of all they earn goes into their personal savings on a regular basis. In other words, they pay themselves first.

I’ve watched countless underearners transform small salaries into hefty bank balances by simply socking away small amounts into a savings account every month.

But now, unlike 95 years ago, you can do this automatically. Fill out a form and voila, the bank takes care of everything.

What do you do next? The rich man’s guidance is simple. Once you learn to live on less than you earn, next “seek advice from those who were competent through their own experiences to give it. And, lastly…make gold work for you.”

If you follow Clausen’s timeless wisdom faithfully—pay yourself first, learn from those with experience, and invest for long term gain–you’ll find yourself well on the way to wealth!

What gets in your way to creating wealth? Comment below and let me know

How to Have a Legendary Love Affair…with Money

Written by Barbara Huson

In the spirit of Valentine’s day, I have a suggestion. There’s no better time to start having a legendary love affair with your money.

Think of it this way…

Money is like the perfect romantic partner. All it wants to do is serve you, support you and protect you.

All money requires in return is for you to respect and appreciate it by taking good care of it.

In other words, money needs your attention. It needs your understanding. And it needs to feel valued.

Without those, neither a mate nor money will stick around for the long haul.

And as in all relationships, there are good times and bad times.

Bad times are not the time to turn your back, throw in the towel or ignore your finances. At least not if you want to grow old together.

How do you survive the rough patches? Seek professional advice. Ask a lot of questions. Ensure you are positioned to grow and flourish when the tide turns.

It all boils down to this. When money feels your love, you both will live happily ever after.

What are you doing to make sure your money feels your love? Leave me a comment below and let me know.

Financial Wellness

The Secret to Investing Wisely–Understand the Investment Pyramid

Wealth Building Made Simple…Very, Very Simple!

Observations From a Financial Therapist: Money Problems Are Never About Money

Rewiring Your Brain for Higher Earnings

Willpower Won’t Work! Rewire to Spend Less

The Conversation No One Wants to Have. But You’ll Be Sorry If You Don’t.

The Trinity of Trust

Are You a Victim of Financial Abuse? 10 Red Flags

The Timeless Wisdom of Wealth Creation

How to Have a Legendary Love Affair…with Money

Meet Barbara Huson

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