The World’s Simplest Savings Plan

Written by Barbara Huson

Let me see a show of hands. How many of you promised yourself you’re going to save more. You really want to. But your savings remains minimal to non-existent.

I can understand if your hand went up. It’s easy to say that you’ll move money to savings but in practice, it often doesn’t happen. You forget; you overspend; you have a hundred excuses.

But that’s because you haven’t discovered the simple secret to amassing significant savings…easily, mindlessly.

Automate.

Every month, have your bank automatically transfer a certain amount of money (no matter how small) from your checking account to your savings account. All you have to do is fill out a form and it’s done. So simple.

What I love about this—you don’t miss what you don’t see.

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

Ain’t Never Too Late!

Written by Barbara Huson

I was on a book tour, giving a yet another speech. But this one I’ll never forget because of what happened afterwards.

An older woman, leaning on a cane, waited patiently to purchase a signed book. She was 84 years old, she told me when it was finally her turn, and had been married to a very wealthy physician. He was always on the phone, yelling at his broker, which made her very uncomfortable. So she let him handle all the finances.

Ten years ago, he died. He not only left her no money, but all his investments were on margin (he used borrowed money), so he left her saddled with debt.

Before the shock even wore off, she said, she found a financial advisor, started taking classes, learned about investing.

“I’m a very wealthy woman today,” she told me proudly, announcing she’d just returned from a round-the-world cruise.

In one of those crazy coincidences, I bumped into her 7 years later. She had just turned 91. When I asked how she was doing, she responded with what I could only describe as a devilish grin: “I’ve done better in the market than any man would’ve done for me.”

It’s never, ever, ever too late to start!

The Real Meaning of “Risk”

Written by Barbara Huson

Ask a novice investor to define risk, and most will say losing money. They look at market fluctuations and all they see is the likelihood of loss.

An educated investor, however, looks at those same market fluctuations and sees opportunity for gain.

The truth is, our biggest financial risk is not market volatility. Our biggest risk is to do nothing at all.

Sure the market’s ups and downs are scary. But you can dramatically cut your losses with due diligence, a long term approach, and good diversification.

On the other hand, if all your cash is sitting in the bank, your purchasing power will shrink like a wool sweater in a hot dryer.

At least a portion of your savings needs to be in assets that grow faster than inflation and taxes eat it away.

Otherwise your greatest risk, as a woman, is that you’ll outlive your money.

Hey, Let’s Show a Little Respect Here!

Written by Barbara Huson

Money is a lot like a good man. Its greatest desire is to serve and support you. In return, all it requires is to be respected and appreciated.

You respect money the same way you would anything else you value, be it a work of art, a treasured friend, or cash in hand.

If you want it to last, you’ve got to take care of it. Throw it around carelessly or ignore it completely and guess what’s going to happen?

How do you respect and appreciate money? Follow the Four Rules of Money:

Watch What You Say

Written by Barbara Huson

Language is powerful. There is a direct correlation between the words that you use and the life that you have.

Words tend to become self-fulfilling prophecies, so watch what you say.

Talk about what you’re committed to (i.e. financial freedom), not what you’re worried about (spiraling debt).
Stop apologizing unnecessarily or belittling yourself in any way.
Tell people what you want and have them hold you accountable.
Change the conversation going on in your head, the little voices telling you what you can and can’t do, urging you to play small, be safe, hold back.

Note to Financial Advisors: 5 Powerful Insights into How Women Think

Written by Barbara Huson

I truly believe the best way for women to create wealth is by working with financial professionals. But, according to the Wall Street Journal, “fewer than one in five women currently has an advisor.”

Why? Because women can’t find anyone who understands them.

Advisors are talking to women just like they do men. Big mistake. True, money knows no gender. Women, however, are very different from men. Yet the financial world is based on the male model of communication.

Here are 5 powerful insights into how women think:

1) Women are all about relationships. Women are ‘other’ oriented; men are transaction oriented. Women communicate to create relationships and make connections. Men communicate to obtain information, establish status, and show independence. These are 2 very different conversations. The message women want to hear: “I care about you. I understand you. I’m here to support you.” How? Ask lots of questions about her goals, dreams, time frames, life style, opinions, her life in general. Listen more than talk. Find out what she needs, not what you think she needs.

2) Women can be very emotional when it comes to money. But in the financial world, conversations about emotions are considered taboo, too touchy-feely, not part of the financial planning process. Really big mistake. You don’t need a degree in psychology. But you do need to invite her to discuss her fears, her beliefs and her family’s attitudes toward money. Often by simply listening her issues, addressing her qualms while explaining her options can be enough to get her past her emotional blocks.

3) Women want to be educated. Men like to learn through trial and error. Women like to be taught. In a study by Deloitte Touche, 90% of the women expected their financial advisor to educate them. They even rated service, advice and education far ahead of performance. What’s one of the best ways to educate women? Seminars. Why? According to an Emory University study, “the pleasure and reward centers of their brain light up if they can work towards their financial goals in a cooperative way with other women.”

4) Women define success differently than men. Men define success as being in control; women as how well they can help others. The financial media, and the industry itself, seem to believe that scary statistics, alarming statements, and worse case scenarios will actually motivate women. But clearly fear tactics haven’t worked. Instead, talk to her about how investing allows her to experience the joys of philanthropy, the thrill of leaving a legacy, the satisfaction of helping people she loves and causes she’s passionate about.

5) Women clients tend to be more time consuming, especially at the beginning. Women expect more service, ask more questions. But she’ll be your client for life if she knows you are there for her, as her partner, a part of her team, an advisor she can trust. In my 1^st appointment with Eileen, my long time advisor, she told me: “My job is to see your needs are met. It’ll take time but I need to find about your goals and level of risk.” And she did. Then she gave me choices. “I see myself in partnership with you. Here are your choices. Let’s discuss each of them and figure out what is best for you.”

I participated in a tele-seminar discussing these very points at length. I believe you’ll find it exciting and informative. Click here to listen.

Time to Have a Love Affair with Your Money

Written by Barbara Huson

“It’s amazing what you can do with money!” my daughter said to me the other day.

Her husband, a film maker, is directing a documentary funded by a generous sponsor with very deep pockets. Normally, he’s working on a shoestring. This time, he gets pretty much free rein to do fun things, like travel to far-off places and hire helicopters for various shots.

Yes, it is amazing what you can do with money. What’s puzzling is why are countless women ignoring their finances?

I’m beginning to think its fear of relationship.

In my mind, money is like a Perfect Lover. All it wants to do is serve you and support you. All it requires, in return, is to be respected and appreciated.

In other words, just like a man, money needs your attention; it needs to feel understood, cared about, and valued. Otherwise, it’s not likely to stick around for the long haul.

As in all relationships, there are good times and bad times. Right now, it’s one of those bad times for many. If you’re in that spot, this is not the time to turn your back, throw in the towel or ignore your money. At least not if you want money to be there for your old age.

Now is the time to work on creating more intimacy with your money. Get to know it better. Learn what it needs and how to best care for it. Make sure it feels the love. (The “love of money” is NOT the root of all evil! Deprivation and destitution is.)

Some suggestions for improving your relation$hip:

1. Talk to a professional. Make an appointment with a financial advisor. (Try my book Finding a Financial Advisor You Can Trust)

2. Give it attention. Read something every day about money, even if it’s just a paragraph. (Try the Wall Street Journal)

3. Talk to others. Ask friends and colleagues who are smart with money for advice

4. Be wary of hype, rumors and scare tactics. Bad news can be seductive, but it’s usuallyskewed.

I honestly think it’s time we all start having a love affair with our money. You’ll be amazed at what you’ll be able to do together as a result .

Women are Not Men! (Part I)

Written by Barbara Huson

Excuse me while I climb up on my favorite soapbox.

I can’t help myself. Dailyworth posed a question that got me all worked up.

What would you tell the financial industry about how, specifically, they can better serve women?

Oh boy. So much to tell. So little space.

But I’d start with this: Women are not men!

Obvious, right? But clearly, the financial industry hasn’t gotten that memo.

I’m a big fan of financial professionals. I’ve had the same advisor for 11 years (after going through nine others that didn’t get the memo either). I even wrote a booklet, “Finding a Financial Advisor You Can Trust.”

Sadly, the bulk of advisors (I’m including both sexes here) still live in the dark ages when it comes to female clients.

So, inspired by DailyWorth, here are my suggestion for how the financial industry can shape up and better serve women. I call it:

What Women Wish You Knew Before They Walk into Your Office, Part I

1. Women are all about relationships. Men are transaction oriented. Men communicate to obtain info, establish status, and show independence. Women are ‘other’ oriented. Women communicate to create relationships and make connections. So when dealing with women, think in terms of ‘connecting with’ rather than ‘selling to.’

2. Inspire rather than frighten. The industry seems to think the best way to motivate women is with scary statistics and worst case scenarios. But fear produces paralysis in most women. If you want to motivate a woman, speak to what inspires her, NOT what scares her. While men define success as being in control, women define success is how well they can help others (it’s that relationship thing!). So, instead of filling her with fear, show her how informed investing allows her to help people she loves and causes she’s passionate about.

More pointers coming in Part II. Meanwhile, feel free to send this list to any advisor you know. You’ll be doing them a big favor.

Women are Not Men! (Part II)

Written by Barbara Huson

Not long ago, I responded to the DailyWorth question: What would you tell the financial industry about how, specifically, they can better serve women?

And, Lord knows, they sure do need help serving women. Smart Money reports that over 70% of women feel under served and dissatisfied with the financial-planning services they receive.

So listen up, all you financial pros. I offered 2 pointers in the first part of this blog. Here are 4 more.

What Women Wish You Knew Before They Walk into Your Office, Part II

1. Educate her. While men prefer to learn through trial and error, women want to be taught. A study by Deloitte & Touche found that 90% of women expected their advisor to provide education and guidance rather than “sell them on effective investment practices.” And never assume just because a woman wears a designer suit or has an executive title, she’s savvy with her own money.

2. Think seminars. Women enjoy seminars because they get to gather in groups, talk among themselves, network, exchange views, learn they’re not alone. But make sure the seminar you’re offering is really designed for women and not just a generic clone. Women have distinct issues around money, different from men, due to their upbringing, cultural conditioning, and emotional blocks. Address, don’t avoid, those issues. (Shameless plug: I offer two turn-key seminars designed specifically for women to be given by financial advisors.)

3. Show respect. Treat women as intelligent adults. I’m aghast at how many advisors still tend to patronize women, address only the husband, or speak ‘financialese’. Being treated with dignity is a big deal for women. We do not want to be sold to or pressured in any way. We want to feel listened to, understood, given choices and time to make our decisions. When we say “I’ll think about it” it doesn’t mean ‘no’…it usually means we’re going to kick around the ideas with others, which is what we do!

4. Address her emotions. This is a tough one for advisors, to whom talk of emotions is too touchy feely. But like it or not, money is a highly emotional topic for most women. It’s been our forbidden fruit. You don’t have to be a shrink (though many advisors now partner with therapists or coaches). Ask her questions, allow her to talk about her fear, listen to her feelings, slowly educate her, and focus on inspiring rather than scaring her.

This is, by no means, a definitive list. What you would add? Tell me in the comments below. And I’ll pass them on to the wonderful folks at Daily Worth.

While you’re at it, you might want to subscribe. It’s free!

Fear & Resistance: Cracking the Code

Written by Barbara Huson

I did it! I actually did it! I showed My Man my financials…and he did the same.

And you know the biggest lesson I learned (yet again) from all this? The fear of doing is always worse than the actual doing! Now, in hindsight, I wonder, “what the hell was the big deal anyway??”

The second biggest lesson: resistance wanes the closer you get to the root of it. The moment I realized it was my childhood fear of feeling different and not being accepted, those old demons didn’t seem nearly so threatening.

So here’s what happened:

We were sitting around the kitchen table. He had just made me eggs. (Gotta love a man who cooks!!) I showed him the recent blog about my old journal and my epiphany. (My Man…My Money…and Me)

He read it thoughtfully, then looked up at me and said, ever so gently: “I totally understand.”

Without even thinking, I walked to the stack of mail on the kitchen counter and tore open an over-sized envelope. How perfect that my August financial statements had just arrived the day before. I pushed aside the dishes, spread out the papers, and said, “This is what I have.”

He listened, asked a few questions, and told me he was proud of the way I managed my money, especially given my history. Then, he described what he had in each of his accounts, I asked a few questions, and praised him for being so responsible.

I got up, washed the dishes, and we took a walk. That was it. It was a non-event.

But at the same time, it was clearly a turning point. We each realized, without saying a word, we’d taken our relationship to a new level of intimacy and trust. And it felt really good!

Women & Wealth

The World’s Simplest Savings Plan

Ain’t Never Too Late!

The Real Meaning of “Risk”

Hey, Let’s Show a Little Respect Here!

Watch What You Say

Note to Financial Advisors: 5 Powerful Insights into How Women Think

Time to Have a Love Affair with Your Money

Women are Not Men! (Part I)

Women are Not Men! (Part II)

Meet Barbara Huson

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