Investing
Rollercoaster

Yikes! The Sky is Falling!!!

Written by Barbara Huson

As I write, the market’s in a nose dive. Panicked investors are running for the exits.

Please tell me you’re not one of them.

By the time you read this, stocks may have recovered. Or not. The only certainty is that, long term, the trajectory has always been up.

Besides, price swings only matters when you sell. It’s called the Rule of the Roller Coaster: You only get hurt when you jump off. 

I discovered this the hard way. My first foray into stocks came after my divorce, in 1986. My broker sent me all kinds of reports and statements, none of which I understood, so I threw them away.

A year later, Oct. 1987, the market tanked…big time! I freaked out, called my broker, told him to sell everything. He begged me not to.

“The market will go back up,’ he said, “It always does.”

I didn’t care. I wanted my money where it was ‘safe’.  Of course, the market rebounded, quite quickly. If I stayed put, I’d be a lot richer now. But I learned my lesson.

Fast forward, 10 years later. October, 1997.  Prince Charming Isn’t Coming had been published. I knew a hell of a lot more about investing.

Again, the market plummeted. This time, I’m on the phone calling Schwab. My now 2nd ex-husband was upstairs, pacing the floor, in a frenzy about his finances. My teenage daughter comes downstairs, sees me on the phone, asks what I’m doing.

“I’m buying stock” I tell her.

“But mom,” she says, “The market’s crashing.”

“No, Anna” I say. “It’s a sale!”

I understood it then. I understood that eventually the market would go back up…I didn’t know when, but I knew it would.

Sure enough, in the 20+ years I’ve been invested, despite living through at least 8 market crashes, not just corrections like now (when market falls 10%), but full on crashes (when the market plunges 20%), I’m proud to say, I’ve done very, very well for myself.

The secret to success in investing is sticking to a long term approach. Otherwise, you’re not investing. You’re gambling.

What’s your reaction to this crazy market?

If you enjoyed this Words of Wealth, click here to receive a copy in your inbox every week.

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God and Money

Written by Barbara Huson

Call me crazy. Or call me Woo-Woo. But I firmly believe financial success is a spiritual journey; financial abundance is a divine right; and financial responsibility is a sacred duty.

Something happens when you bring faith into finances. The often overwhelming task of making more money and managing it wisely becomes not only easier but more meaningful.

Look at it this way. You and I are here for a purpose. Money is a vital tool for doing what we were put on this planet to do. How can you possibly follow your God given destiny if you’re drowning in debt, struggling to make ends meet?

Disciplined spending, sufficient earnings, habitual savings and prudent investing are sacred tools for not only living your best life but making the world a better place.

Money, I believe, is God made visible.

If you enjoyed this Words of Wealth, click here to receive a copy in your inbox every week.

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Want to Feel More Powerful?

Written by Barbara Huson

It was a conversation I’ll never forget.

Soon after I sold my first book, Prince Charming Isn’t Coming: How Women Get Smart about Money, I flew to New York and had lunch with my editor from Penguin. As we munched on our salads, I casually asked if she ever invested.

“Oh no,” she said, emphatically. “I have no money.” I could see she was embarrassed, so I dropped the subject.

A year after my book hit the stores, she called to confess.

“Remember that lunch when I told you I had no money,” she said. “Well I did, but it was all sitting in cash in my 401 (k). After working on your book, I realized how foolish that was. So I started educating myself, found an advisor, and it’s now fully invested. I even collected my spare change in a jar every night, and I’ve invested that too.”

She paused a moment, then added: “I watch the market go up and down, but I’m in it for the long haul, so I’m not worried at all.”
My heart burst, I was so excited. But then she said what I hear all the time from women when they finally understand investing.

“I have to tell you, Barbara, I feel so powerful.”

Those four words captured the essence of my life’s work; why I’m so passionate about helping women financially. Sure, I want them to prosper. But more importantly, I want every woman to realize that by taking charge of her money, she’s taking charge of her life. The incredible sense of power this brings is a seriously intoxicating high.

Baffled…

Written by Barbara Huson

For over 20 years, I’ve been baffled.

Sure, we women have become excellent dollar watchers and bargain hunters. But investors? Forget about it. We want to learn, but lack the confidence to act.

And here’s what’s really baffling. Once women enter in the market, we’re actually better investors than men.

What’s up with this??? The answer, I’ve discovered, lies in our brain.

Women and men’s brains are different and process information differently.

Men see investment risk as a challenge. Women see investment risk as a threat.

Men measure success by beating an index or their peers. Women measure success by meeting their goals and helping others.

Men, in their competitiveness, trade stocks frequently. Women, with our lack confidence, tend to buy and hold. A much better strategy over time.

Here’s the irony. Our lack of confidence actually works in our favor.

The more I study neuroscience, the more I’m convinced. Rather than avoiding investing because it feels like a threat, let’s focus on rewiring our brains to become confident investors.

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To All Money Avoiders…

Written by Barbara Huson

I see it all the time. Women do not get serious about money—making it or managing it—until a crisis hits.

Either their world falls apart, or feels like it’s about to. That’s when they finally take action.

I did it myself. I waited until a million dollar tax bill almost wiped me out.  Not smart!! Not fun!! Not the best timing.

How about you? Are you avoiding your finances?

Instead of waiting for the pain to get worse than the fear or for your very foundation to be violently (or even mildly) shaken, try this experiment.

Focus on what inspires you and stop dwelling on what scares you.

Forget all the things that can go wrong.

Think about the joy of finally feeling financially free, the deep satisfaction of contributing to causes you’re passionate about, helping those people you love.

That’s what I finally did. I started thinking about what kind of a role model I wanted to be for my daughters instead of obsessing about my terror of screwing up.

When I made that shift, I had no choice…I could no longer let fear stop me!

What, around your finances, are you avoiding? Share below.

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The Real Secret to Financial Success…it’s not what you think!!!

Written by Barbara Huson

Question: What’s the biggest pitfall to making more money?

Answer: Thinking you have to have it all figured out first.

That’s exactly what slows us down, or keeps us stuck

After 40 years of working with women I’ve found that the ones who had the most trouble reaching their goals were the ones who kept trying to figure out exactly what they needed to do to get there.

If they couldn’t figure it out, they tended to lower their sights.

That’s not the way it works at all…at least not for the thousands of successful women I’ve interviewed. Instead, what these women did was:

1. Set a goal,
2. Commit to reach it (without knowing how),
3. Take advantage of unexpected opportunities (disguised as coincidences).
That’s the real secret to success.

It’s not about trying to figure out how, but being willing to let go of control and do what comes next.

Especially if it’s something you’re scared to do.

When have you set out on a path without knowing the exact next step? Leave a comment below.

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Down with Financialese

Written by Barbara Huson

Have you ever met with a financial advisor, and wished you had a translator? They may be really nice people, but once they start talking, they’re suddenly speaking a foreign tongue.

“C’mon, you guys,” I want to say. “Speak in plain English.” But, truth is, I don’t hold out much hope. The onus is on us.

I’m a big believer in working with professionals…be it for a root canal or a retirement plan. And sometimes the latter can be as painful as the former! But it doesn’t need to be.

Not if you’re willing to speak up, ask for clarification, and keep asking until you understand.

As I’ve learned over the years, just because you don’t understand ‘Financialese,’ doesn’t mean you’re stupid.

It’s simply a sign to ask more questions. And keep asking. The payoff is clarity. But, I’m here to tell you, the real reward is how powerful you’ll feel for standing up for yourself.

How do you stand up for yourself?

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8 Things I Wish I Knew About Money When I Graduated College

Written by Barbara Huson

In honor of graduation season, I offer these Words of Wealth as a gift to all college grads (and their parents)

1. If you can’t afford something, don’t buy it. Delayed gratification is the doorway to wealth (and a sign of maturity).

2. Make savings a habit. Every month, have a small amount–say $5 to $10–automatically transferred from your checking account to a savings account.

3. Exploit the miracle of compounding: your money earns interest, then your interest earns interest, and then that interest earns interest. Before you know it, you’ve accumulated wealth.

4. Never, I mean NEVER, get into credit card debt. Mounting credit card bills destroys your peace of mind and your quality of life.

5. Learn about investing. To make sure you don’t outlive your money, put at least some of your cash in long term assets (like stocks & bonds) that will grow faster than inflation and taxes will take it away.

6. Never invest in anything you don’t understand. Otherwise, you won’t know what you’re buying. You won’t know when to sell. And you can’t accurately evaluate the advice you’re given.

7. Don’t put off investing until you’re older. If you start now, regularly investing small amounts (in mutual funds), your money will grow into millions. (See #3)

8. Own and respect your value. Never settle for less than you deserve or desire. Always ask for more than feels comfortable.

If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com

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Afraid of Risk? Here’s the Antidote…

Written by Barbara Huson

Warren Buffet once said: “Risk comes from not knowing what you are doing.”

In other words:

The biggest risk you take, in investing as in life, is making decisions based on fear, ignorance or habit rather than knowledge.

You want to minimize risk?

Keep educating yourself.  When it comes to investing, there’s always more to learn—which is what makes the subject so interesting.

If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com

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Gambling vs Investing

Written by Barbara Huson

I’ve often heard people say: “Investing is no different that gambling.”

Au contraire. There is a big distinction between gambling and investing.

Gambling looks like this:

  • Buying stocks or bonds willy-nilly,
  • Following a hot tip
  • Purchasing the hottest fund,
  • Trying to time the market (buying when it’s high, freaking out and selling when it plunging),
  • Deferring decisions to another and sticking your head in the sand.

Investing, on the other hand, looks like this:

  • Creating a financial plan based on your goals and risk tolerance
  • Building a diversified portfolio, based on the plan.
  • Adhering to the plan until something changes.
  • Making decisions supported by your plan not your emotions.

If you don’t have an idea of where you want to end up, it will be far more difficult to make the right decisions. Which is exactly why I created One Year to Wealth…Becoming a Savvy Investor. If you want to become a Savvy Investor in 2017, join me for this year long course. Learn more.

If you enjoyed these “Words of Wealth”, head over to my website and sign-up for my FREE weekly newsletter at: www.barbarastanny.com

Meet Barbara Huson

When a devastating financial crisis rocked her world, Barbara Huson knew she had to get smart about money… and she did. Now, she wants to empower every women to take charge of their money and take charge of their lives! She’s doing just that with her best-selling books, life changing retreats and private financial coaching.

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