What’s the Point of Saving When Cash Earns So Little?

Written by Barbara Huson

Q: Does it make sense to keep putting cash in savings accounts which pay next to nothing?

A: Yes!!! Money you won’t need in the next 3-5 years should be in the market, where it can earn a lot more. But it’s important to set aside cash, even small amounts, on a regular basis. Even better if it’s in a higher yield online account like Ally or Capital One.

Here are 3 reasons why savings is smart, even when interest rates are rock-bottom.

Reason #1— Peace of Mind. Unexpected emergencies are inevitable. Your cat needs surgery. You need a root canal. Your kids need new shoes. Without ready cash, you’ll turn to plastic. But if those bills go unpaid, the sky-high interest will keep ratcheting up, wreaking havoc on your credit rating, not to mention your serenity.

Reason #2— Protection. Of course, if you have a brokerage account, you could always sell stock to cover your costs. But what if the market is tanking, forcing you to take a big loss? Or worse, your only recourse, other than debt, is to borrow from your retirement fund, incurring fines and penalties, ruining your plans to retire and endangering your future security.

Reason #3—Guilt-free Pleasures. Once travel restrictions are eased, you’d give anything for a week at a spa. There’s a pair of boots you’ve been coveting forever. On your next anniversary, you’d love to splurge on a romantic dinner at an upscale restaurant. These are often called guilty pleasures. But sufficient savings will erase any trace of guilt, leaving you with purely pleasurable experiences.

It’s true. Savings accounts may not make you wealthy. But they sure can increase your sense of well-being. And that, in itself, is worth a hell of a lot.

Are you continuing to save? Leave me a comment below.

How would you like to be able to ask Barbara questions like the one in today’s blog—anytime you want? Well, you can! Join The Wealth Connection today! Learn More!

Words of Wisdom for Weathering A Crisis

Written by Barbara Huson

I’ve been wracking my brain all week…wanting to find just the right words for these whacky times. Then a newsletter from Ellevest—an online women-centric financial firm—showed up with the perfect message.

I could not have said it any better.

Three Things I’m Telling Myself

By Sallie Krawcheck

What we’re going through is scary. On many levels.

As an investor, it’s been stomach-lurching. And so I keep reminding myself of three things:

We’ve recovered from every recession and depression. Some have been longer; some have been shorter. But we’ve recovered from every one of them since 1854, and the economy has continued to grow.
Time has been your friend. We’ve recovered from every “bear market” in history. Some have been longer; some have been shorter. But consider this: You could have invested in the stock market on any given day since the mid-1920s, and if you had stayed invested for 15 years, your chances of a positive return historically were 99%.
Stillness is your other friend. Remember the research that women are better investors than men? That’s because women more often do what so many professionals (Ellevest included) advise: Invest according to a plan — and then leave it alone.

Click here to read the rest of the article.

Do you have an investment plan in place? Leave me a comment.

Reassuring Words for Rough Weeks Ahead

Written by Barbara Huson

Oh what challenging times we live in. I’ve been trying my best to remain at peace while the whole world is waging war on a deadly disease.

At first I felt I only had two choices. Be afraid…very, very afraid. Or stick my head in the sand and pretend all is well. Neither did the trick.

Then, I did something that made all the difference. Every morning, while making tea, I search for ‘spiritually uplifting perspectives on the Coronavirus.’ These messages—and there are plenty of them—calm my anxiety faster than any drug ever could!

I’d love to share one with you. I found the words both reassuring and thought provoking, reminding me that a better world awaits us all. Perhaps this will give you some peace as well.

“Whatever it is, coronavirus has made the mighty kneel and brought the world to a halt like nothing else could.

Our minds are still racing back and forth, longing for a return to ‘normality’, trying to stitch our future to our past and refusing to acknowledge the rupture.

But the rupture exists. And in the midst of this terrible despair, it offers us a chance to rethink the doomsday machine we have built for ourselves. Nothing could be worse than a return to normality.

Historically, pandemics have forced humans to break with the past and imagine their world anew. This one is no different. It is a portal, a gateway between one world and the next.

We can choose to walk through it, dragging the carcasses of our prejudice and hatred, our avarice, our data banks and dead ideas, our dead rivers and smoky skies behind us. Or we can walk through lightly, with little luggage, ready to imagine another world.

And ready to fight for it.~~Arundhati Roy

Do you have any comforting quotes you’d like to share? Leave me a comment below.

Losing Sleep Over Sinking Markets? Advice from a Wall Street Expert…and a Veteran of 2 Major Crashes—Me!

Written by Barbara Huson

Last week, the market took the worst dive since 1987. Ahhhhh, yes, 1987. I remember that October day quite well. Black Monday they called it.

I’d been in the market for about a year. I knew nothing about investing, but I trusted my broker. However, when the market went into free-fall, I went into full blown panic.

I called my broker, insisted he sell everything. He begged me not to, insisting the market will go back up…it always does.

I didn’t listen. If I’d stayed put, like he instructed, I’d be a lot richer today.

Yet it was a priceless lesson.Ten years later, in 1997, almost to the day, the market crashed again. Only this time I didn’t see disaster. I saw a sale.

Fast forward to today. I’m not saying you should go on a buying spree. Though it is a sale. But I am imploring you not to sell everything in a panic. Investment decisions, based on emotions, rarely end well.

However, if your nervous system can’t stand the heat, don’t rush out of the kitchen or do anything rash. Take advice from my favorite financial writer, Jason Zweig,

“If you feel you can calm yourself only by ditching some stocks,” he wrote in last Fridays Wall Street Journal, “sell a fixed amount each month for the next year.” By taking small steps, and automating them, you take the emotion out of the decision.

And if you’re going to sell, sell the losers, he advised. “That will turn some of your losses into cash—and a write-off on your taxes.”

Or, instead of selling, “You could direct your dividends into cash, rather than more shares, for now.”

I’d love to hear how you’re reacting to this crazy market? Buying? Selling? Waiting and watching? Or frozen in fear? Leave me a comment below.

Financial Challenges are Your Friend

Written by Barbara Huson

I’ll let you in on a little secret. Anyone can create wealth. Yes, even you, regardless of your current situation. I’ll tell you how.

First, pinpoint your biggest Financial Challenge. It could be anything from a gnawing sense you’re unhappy at work to the gut-wrenching pain of staggering debt.

Next, realize that this Financial Challenge is about far more than money. It‘s a profound opportunity for personal transformation; the call of your Soul trying to get your attention; the starting point for creating wealth and claiming your power.

Finally, by committing to resolve your Financial Challenge, you’ll open the door between the life you now live and the amazing life that’s patiently waiting for you to take action.

There is no magic bullet for resolving a Financial Challenge. Nor would you want one. It is the process that’s empowering, a three-pronged process:

1) The Outer Work of Wealth—adhering to the Rules of Wealth: Spend less; Save More; Invest Wisely.

2) The Inner Work of Wealth—exploring your attitudes, beliefs and early decisions you made about yourself and money.

3) The Higher Work of Wealth—understanding the laws of the Universe so you can manifest your destiny and make a difference in the world.

As you begin taking small steps to resolve your Financial Challenge, one of two things will happen. Either you’ll resist, give up and fall back into the familiar. Or your life will dramatically change, not only with money, but in other areas as well.

What’s your biggest financial challenge? Are you ready to resolve it? Leave me a comment below.

Take action to bring your dreams to life. My virtual community, The Wealth Connection, is the place to find the support you need. Join Today!

Are You an Underearner? Part 2

Written by Barbara Huson

Underearners (UEs) can be hard to spot. Here are seven traits that all UEs share.

1. Live in financial chaos—UEs tend to go from one financial crisis to another, struggling to make ends meet, often drowning in debt.

2. Vagueness about money—UEs usually have no idea how much money

they have, earn or need and depend on wishful thinking instead of strategizing and negotiating.

3. Underestimates worth—UEs give away their time, knowledge, skills for free or bargain prices because they devalue themselves.

4. Anti-money attitude—UEs are ambivalent or downright negative about money and people who have it, believing there is virtue in being poor.

5. Self-saboteurs—Bright women remain UEs primarily by taking on too much, being scattered and unfocused or procrastinating.

6. Co-dependent—UEs put everyone else’s needs first, which leads to anger, resentment and pain (not the qualities conducive to success).

7. Craves comfort—UEs are unwilling to be uncomfortable and therefore unwilling to take risks.

Did you say to yourself, Yes, that’s me, as you read this? If you struggle with Underearning tell me about it in the comments below.

Are You an Underearner? Part 1

Written by Barbara Huson

Ever wonder if you’re underearning?

All underearners share one common trait: A high tolerance for low pay. But that description can be deceptive.

“Low pay” is a relative term. You can make six figures and still be an underearner. Conversely, you can earn far less and not be.

My definition of an underearner—someone who makes less than she needs or desires despite her efforts to do otherwise.

Underearning is not the same as VOLUNTARY SIMPLICITY—a conscious choice to live on less in order to create a simpler, saner life; or A MINDFUL LOW EARNER, someone who does work that feeds her soul and still makes enough to meet her needs.

Underearning is never a conscious choice. It never leads to a saner, more satisfying life. It is always a CONDITION OF DEPRIVATION, not just of money, but of time, joy, freedom, choices and self-esteem.

Do you see yourself in any of the descriptions above? Share in the comments below and be sure to watch for next week’s blog where I’ll share some specific traits of underearners.

Is Money a Pressing Priority?

Written by Barbara Huson

You say you want to make more money, right?

But understand this. Nothing will happen until you consciously decide to make financial success a pressing priority.

A decision is not the same as a goal. A goal denotes the desired destination. A decision implies the determination to reach it.

Here’s the beauty of a committed decision. You don’t need to have a plan all figured out. All you have to do is decide what you want and do what comes next.

Decisions are like magnets. They attract opportunities.

But be warned: those opportunities always lie outside your comfort zone.

You’ll come to a point where you must decide what you’re really committed to: increasing your income or staying where it’s safe.

You can’t have both. Have you done anything recently that’s outside your comfort zone? Leave me a comment below.

If you’ve made a decision to build your Wealth in 2020, I’m here to tell you it’s easier with support. Get the support you need to stay on the Wealth-Building path in my virtual community—The Wealth Connection. Learn More.

Ready to Rewire for Wealth?

Written by Barbara Huson

Is this the year you become a wealthy woman? Or an even wealthier one? It’s really quite simple.

Every time money comes in, put a portion into savings on a regular basis. How much? Ten percent is ideal, but less is absolutely fine. Sadly, few people do this.

For many, setting aside savings is akin to self-imposed poverty, as expressed in a recent email I received. “How can I SAVE money to create wealth (which means cutting back spending) and still have a feeling of ABUNDANCE (which means the desire to SPEND) and not a mentality of LACK?”

In her mind, spending provided the pleasurable pretense of prosperity while savings felt like self-denial. But a brain wired for wealth views it quite differently.

Saving means you’re giving the money to YOU (not Visa or Starbucks) so that ultimately you can purchase whatever you please without pressure or worry. The difference between the two mindsets is not deprivation but delayed gratification.

The ability to delay gratification is a sign of maturity and the quickest way to accumulate more than enough, which is the true definition of wealth.

The best part. Saving is so easy when you set up automatic deposits. You don’t miss what you don’t see.

And, with little effort, you set the rewire process in motion. As you watch your savings grow, the reward centers of your brain light up and your inclination to save more increases by the day.

How do you feel about savings—self-denial or the way to wealth? Share below.

Give yourself the Gift of Wealth in 2020! Join my virtual community, The Wealth Connection and Become a Savvy & Confident Investor! Learn More!

Why You Probably Suck at Receiving

Written by Barbara Huson

In this season of giving, it’s worth stopping and giving some thought to how you receive. Here’s another blog from the archives to think about.

Consider this. There’s a direct correlation between your ability to receive and your level of financial success.

The problem, however—most of us suck at receiving.

Think about it. How often do you gloss over praise, deflect admiration, deny an achievement or respond with self-criticism?

Receiving is to your Soul what eating is to your body—a source of strength, nourishment, and growth. When you fail to receive, you’re literally starving your Soul.

But here’s where it gets tricky. Many gifts come camouflaged and are easily overlooked. To receive fully you must suspend judgment. Nothing that happens is ‘good’ or ‘bad, ’right’ or ‘wrong,’ ‘negative’ or ‘positive.’

Everything, absolutely everything, no matter how it feels, is a gift, a message, a lesson, a form of divine communication.

This, of course, is counterintuitive. It’s easy to receive a compliment from a friend, but a reprimand from your boss? That too can be a gift when you mine it for its deeper meaning.

To quote a Zen saying, the obstacle is the path. “So that like oxygen to a fire,” writes author Robert Greene, “obstacles and adversity become fuel for your potential.”

To receive fully means this: Every frustration, disappointment or even failure is, in truth, a source of guidance, support, and strength building…a gift, that if fully received, will increase your success exponentially.

I’d love to hear your experiences of how past disappointments turned out to be gifts in disguise. Share your story in the comments below.

Give yourself the gift of community this holiday season. Join my virtual community The Wealth Connection. It’s the place for women to come together to become Savvy and Confident Investors and find support every step of the way!

Learn More!

Financial Wellness

What’s the Point of Saving When Cash Earns So Little?

Words of Wisdom for Weathering A Crisis

Reassuring Words for Rough Weeks Ahead

Losing Sleep Over Sinking Markets? Advice from a Wall Street Expert…and a Veteran of 2 Major Crashes—Me!

Financial Challenges are Your Friend

Are You an Underearner? Part 2

Are You an Underearner? Part 1

Is Money a Pressing Priority?

Ready to Rewire for Wealth?

Why You Probably Suck at Receiving

Meet Barbara Huson

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