Inflation Protection

Written by Barbara Huson

If you can fog a mirror, you’ve probably heard. Inflation is the highest it’s been in decades.

Inflation is a ravenous creature that devours our dollars like a caterpillar on a leaf–slowly, methodically, little bits at a time. But this recent bout seems more like a famished elephant.

The only way to counter the ravages of rising prices is to make sure at least some of your savings is working harder than it would in a bank, where it earns next to nothing.

In normal times that means the stock market. But with markets in turmoil, many of us are looking for safer alternatives. That’s why I got so excited when I read Jason Zweig’s column in this week’s Wall Street Journal.

“Fortunately, raising the return on your cash is easier than ever,” he declared. “The two best choices are money market funds and U.S. Treasury securities.”

The Secrets to Wealth Building…Revealed At Last!

Written by Barbara Huson

“What are the secrets to being wealthy?” she asked, a tinge of desperation in her voice. “I feel like rich people know these secrets that I never learned.”

She was right. There are Secrets to Creating Wealth. And I understood her frustration. I struggled with this same question for years, never getting a satisfactory answer.

It took me forever to figure those secrets out. And when I did, my financial proficiency (not to mention my self-confidence) skyrocketed.

The truth is, very few people actually understand how to become a Wealth Builder. Everyone, however, knows how to be a Consumer.

The Hidden Danger of Higher Earnings

Written by Barbara Huson

I noticed a disturbing theme in my conversations with successful women. I call it the Illusion of Affluence. Whopping wages can be deceptive and dangerous.

I see it repeatedly: High earners spending too much, saving too little, or plowing all profits back into their business. Their ample earnings gives them the appearance, but not the security, of affluence.

Even if they can easily make a bundle whenever they want, high earners are as vulnerable to hard times and sudden change as anyone else.

Absolutely, women making big money are to be applauded. But the real measure of success isn’t what comes to you…it’s what stays with you (i.e. your net worth—the sum total of what you own minus the sum total of what you owe).

Inflation: A Reason to Worry….Or A Call to Action?

Written by Barbara Huson

Even the wealthiest worry about money. Their biggest fear: Inflation.

Inflation is, indeed, a ravenous creature that devours our cash like a caterpillar on a leaf—slowly, methodically, little bits at a time.

For years, however, inflation has stayed quite low. But that’s rapidly changing. Inflation has hit its highest rate in more than 40 years. And it’s expected to keep escalating.

Is it time to start worrying? Heavens NO! The worst response to climbing costs (or most anything else for that matter) is to go into fear, which tends to have a paralyzing effect.

Instead, look at rising inflation as a resounding call to action…no matter how much or how little money you have.

The Inner Work of Wealth

Written by Barbara Huson

There came a moment when I finally knew: I had to get smart about money. A massive tax bill was my incentive. Yes, I was terrified. But 3 daughters depending on me gave me no choice.

I went to classes, read books, yet nothing made sense. I felt immobilized. Nowhere in those books or classes could I find a solution for my paralysis. Then I took matters in my own hands.

I finally stopped focusing on the practical mechanics of money and started plumbing the deepest recesses of my psyche. I went into therapy, wrote in my journal, dove into personal growth.

At some point, I became aware of a familiar voice in my head telling me how stupid I was. Instead of ignoring it, as I usually did, I began a dialogue with that voice, asking it where it came from and what it wanted.

How much Risk Can You Handle?

Written by Barbara Huson

With soaring inflation soaring and turbulent markets, it’s a good time to discuss an important concept: Risk tolerance.

You’ve probably heard those words bandied about when talk turns to investing. But do you know what they mean?

Risk tolerance is generally defined as the ability to stomach large swings in the value of your investment portfolio. The market, by nature, is very volatile. It’s vital to understand your level of tolerance for risk in order to make prudent decisions.

Here are 3 factors to help you figure out how much risk you can tolerate:

The first factor is time. When will you need the money? Generally, you can take a lot more risk if you’ve got 10-years or more. Money you need in the next 3-5 years should be in cash. You don’t want to be forced to sell if the market is down.

The second factor is cash reserves. How much cash do you have on hand? If all your money is fully invested, with no extra cash to cover unexpected expenses, that would be a problem. Either you must sell at a loss or go into debt.

The third factor is sleep. How much volatility can you stand before you start stressing out, unable to sleep at night? We all know what happens if we don’t get enough shut-eye. Everything suffers!

Those factors are crucial considerations. But keep in mind. Your biggest risk is not protecting yourself against inflation.

Stuffing your entire savings under the mattress is like living in a house full of termites. Even if nothing seems awry, you’ll doubtlessly be dealing with costly damages down the line.

What do you feel your risk tolerance is? Has it changed in the current market situation? Tell me what you think below.

Having a Hard Time Saving and Investing? Let Me Make It Super Easy!!!

Written by Barbara Huson

After my divorce from the gambling husband and after I paid the outrageous tax bills, my nest egg was almost depleted. But I had a few properties that paid rent every month.

One of the first things I did, when that rent came in, before I spent a cent, I immediately put a portion of it into savings. Otherwise, I knew I’d spend it all.

And I did it automatically. It was so simple. I filled out a form and the bank automatically transferred money from my checking account to savings. The amount was small at first, but it added up quickly. I didn’t even have to think about it.

Automating gave me discipline without having to work at it. It’s easy to say that you’ll move money monthly into savings. In practice, however, it just doesn’t happen. You forget. You overspend, You have a hundred excuses.

But by automating, you don’t miss what you don’t see. This was the beginning of my creating really good financial habits—habits I still practice today.

The Real Reward for Taking Control of Money: A True Story

Written by Barbara Huson

It was a lunch I’ll never forget. Just after I sold my first book to the publisher, I flew to NY and met my editor at a restaurant.

As we got acquainted, I asked if she invested. She got really embarrassed. I felt horrible.

”Oh no!” she stammered. “I have no money.”

I felt terrible and dropped the subject never to address it again. Two years later, after my book hit the shelves, she called me out of the blue.

“Remember that lunch when I told you I had no money. Well, I did, but it was sitting in cash in my retirement account,” she told me. “But after working with you, I realized how foolish that was.”

So she started educating herself, found an advisor and her 401 (k) was now fully invested. She even emptied her spare change into a jar every night and had invested that too.

Another (Better) Way to View Market Volatility

Written by Barbara Huson

The market’s looking pretty scary these days, right? But honestly, it’s not the turbulence that will get you in trouble. It’s your emotional reaction to it.

Studies show that most investors, regardless of gender, tend to act on emotion, instead of rational thinking, when making financial decisions.

When markets take a tumble, our emotions, especially fear, take over, and we abandon ship, suffering losses.

The emotional reaction also happens in reverse. When the market is on a big run, there’s a tendency to take on too much risk and follow the herd, like so many did during the dot com and real estate booms.

May I suggest another way to view this volatility? Heed the advice of my favorite Wall Street Journal columnist, Jason Zweig: Be thankful that stocks are going down.

A Pep Talk For a Plunging Market

Written by Barbara Huson

What do you do when the market has more stomach-churning dips than a roller coaster? Like now!

Obey the rule of the roller coaster: You only get hurt when you jump off. Same with the market. You only lose money when you sell.

So what do you do when the market plunges? Follow the sage advice from investment firm, Ellevest, in their newsletter What the Elle.

Do Nothing.

As Sylvia Kwan, Ellevest’s Chief Investment Officer, explains: “Over the past 93 years, the stock market has gone up by an average of nearly 10 percent a year. But it didn’t go straight up!”

Indeed, markets always do what markets do: bounce around wildly. Like now.

Investing

Inflation Protection

The Secrets to Wealth Building…Revealed At Last!

The Hidden Danger of Higher Earnings

Inflation: A Reason to Worry….Or A Call to Action?

The Inner Work of Wealth

How much Risk Can You Handle?

Having a Hard Time Saving and Investing? Let Me Make It Super Easy!!!

The Real Reward for Taking Control of Money: A True Story

Another (Better) Way to View Market Volatility

A Pep Talk For a Plunging Market

Meet Barbara Huson

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