Imagine that it’s a year from now—May, 2011. You’re having lunch with your girlfriends and they are all complaining about their finances. It’s the same things that you’ve been listening to for years. One them is saying that her job is giving her ulcers but she can’t afford to quit. Another is complaining that she’s having a hard time making ends meet as a single mother. One woman candidly says that she wants to divorce her husband but doesn’t have a way to support herself and her kids. The last person at the table, dressed in designer shoes and clothes asks you in a whisper if you’d cover her meal.

As you sit with your friends, you listen with empathy because last year you were also complaining about your life and finances. Unlike them you now have peace of mind and are happy with the direction of your life.

A year ago you made the decision to take control of your finances. You realized that if you took better care of your money, you’d be able to have more options in your life. A year ago you decided to increase your income and finally asked your boss for a raise. Eventually you landed a higher paying job at another company. With the extra money you made were able to eliminate your credit card debt.  A year ago you realized that it was your responsibility to know how you and your children would be fed, clothed and housed. This new attitude allowed you to evaluate your relationships in a new light. You can now decide to be with a person (or not) because you don’t need him for your survival.

The time to begin planning for a wonderful 2011 is today.  Are you committed to starting with the things that you directly control such as your money?—how much you earn, spend and save?  The difference between barely surviving  financially and emotionally and thriving is largely about taking action. People who take no new actions can expect no new results.

I’ll be talking about to create financial and emotional abundace in my upcoming 3 part telelass FREE teleclass, “7 Steps to Achieving Financial Freedom From Where You Are Right Now” beginning on May 12, 2010 at 8pm EST. REGISTER HERE

I’ll be teaching women some simple, easy steps that they can use to take control of their money. Every woman deserves to live a prosperous life, full of  joy and opportunity. So regardless of the current state of your finances, you can begin to build financial security…which will help you to sleep better at night.

I believe understanding what drives your earnings, spending and saving decisions is critical to achieving financial prosperity. This means identifying your “Money Personality.”  This information will help you to understand and resolve any money beliefs or behaviors that you could sabotage your efforts to create a financial freedom plan. 

Here’s my assessment of the seven most common money personalities— and how they impact your finances:

The Ostrich: The Ostrich lives in financial denial. Ostriches tend to stick their heads in the sand when it comes to their finances. She’s easily overwhelmed by financial information and relies heavily on other people for guidance.   Ostriches tend to place more trust in other people’s financial judgments than in their own.  Since an Ostrich avoids the realities of her finances, she tends to make money decisions based on what she’d like to believe is true rather than on the facts.

The Victim
The Victim tends to live in the past and blames her financial problems on outside forces (parents, ex-, employer, economy). She’s often passive-aggressive— acting out her feelings covertly rather than directly. She may appear powerless as a way to get others to take care of her needs.  Generally, Victims have been betrayed, abused or have suffered some significant financial loss.  Until The Victim releases the pain, hurt and humiliation of her past, she’ll most likely replicate old experiences of financial betrayal and loss.

The Warrior
The Warrior sets out to gain financial prosperity and is generally viewed as a successful person. She enjoys the buying power, influence and status that money affords her. Warriors are savvy investors, who make informed, strategic decisions. Although Warriors will listen to advisers, she trusts her own instincts and research to guide her.  Warriors are great caretakers who are frequently attracted to less financially secure money personalities such as the Ostrich or The Seeker/Artist who prefer not to manage their finances.

The Martyr
The Martyr, to her detriment, usually places everyone else’s financial needs above her own.  Martyrs are constantly rescuing their adult children, relatives, spouse/partner and/or friends from financial disasters.  In many instances, martyrs have long-established patterns of a self-sacrifice and suffering.  Martyrs are perfectionists who find it difficult to accept help from others.    In order to achieve their own financial goals, Martyrs have learn how to ask for assistance and give up their need to solve their loves ones financial problems.

The Seeker/Artist
The Seeker/Artist usually is on a creative or spiritual life path and has a love/hate relationship with money.  They negatively value money and is conflicted about how it relates her soul-focused life.  Consequently, The Seeker/Artist though talented and driven may be constantly struggling financially.  The Seeker/Artists can gain financial prosperity when she learns to see money as a tool of exchange that she can use to express her own values and beliefs.

The Dictator
The Dictator hoards money and uses it to control others. Although Dictators appear to lead comfortable, happy lives, in reality they are frequently restless, unfulfilled and anxious. The Dictator fears that unless she holds the reigns tightly she’ll lose everything. Dictators believe that earlier in their lives they suffered because they couldn’t/didn’t exercise control.  As a result she’s now driven by her internal need for safety and control. By hoarding money The Dictator is ignoring opportunities to grow her finances for her long-term needs.

The Manifester
The Manifester is the ideal money personality. Manifesters are fully self-aware about their personal and financial lives. Manifesters confront their past and make peace with their personal histories. With this knowledge she understands that she has the power within herself to create an authentic life that incorporates her finances.

Once you know your money personality, you will then be able to develop a strategy to counter the aspects that are hindering your prosperity.
 
I’ll be talking about topics like this in my FREE teleclass, “5 Secrets To How Women Can Take Charge of Their Money, Create Wealth & Gain Peace of Mind” on April 28, 2010. REGISTER TODAY!

I’ll be teaching women some simple, easy steps that they can use to take control of their money. Every woman deserves to live a prosperous life. So regardless of the current state of your finances, you can begin to build financial security…which will help you to sleep better at night.

Photo Credit: Lip Kee

What is an emergency fund?
An emergency fund is a stash of cash that you keep in a bank account that you use to pay for unexpected AND necessary purchases or services. Emergency needs vary but it generally entails an unforeseen event that’s related to your health, home, automobile, or livelihood.

Why do you need an emergency fund?
Studies show that annually most people in the U.S. have about $2,000 in unexpected expenses. Unfortunately most adult women in the U.S. have about $500 in savings—a $1,500 shortfall.

Here are some REAL reasons to start an emergency fund immediately:

Major Illness: Your (or your spouse) can’t work and earn money.
Job Loss: You or your spouse are unemployed for several months.
Death: You husband or a parent dies.
Major Repair: Your car’s engine needs work or your water heater goes on the fritz.
Fire: Your home and/or belongings are damaged or destroyed. 
Divorce/Separation:  You may suddenly be put in a position where you will have to pay all of household bills.

How do you start building an emergency fund?
It’s simple. Open a bank account and start putting money into it every pay period.  You can start with as little as  $25  or $50 a month.  As you reduce your debt and increase your pay you can then put away more money—say $100-$250 a month.  Automatic bank deposits help to make this process a little easier since the money is taken directly from your check.  It’s better to save a little consistently than to do nothing at all.

How much stashed cash do you need?
The rule of thumb is generally as least 3 months of living expenses, but I suggest 6 month. In now takes longer to find employment. Morever, in the case of illness disability policies take several months before they kick in. Lastly, if you are in the process of getting a divorce it could be several months before all of the financials are totally agreed on yet bills have to be paid in the interim,.

Don’t become overwhelmed by the amount of money that you need for your emergency fund. Start small with a little cash and slowly sock more away.  I can tell you that you’ll have peace of mind knowing that you have some cash set aside a rainy day.

I’ll be talking about topics like this in my FREE teleclass, “5 Secrets To How Women Can Take Charge of Their Money, Create Wealth & Gain Peace of Mind” on April 28, 2010. REGISTER TODAY!

I’ll be teaching women some simple, easy steps that they can use to take control of their money. Every woman deserves to live a prosperous life. So regardless of the current state of your finances, you can begin to build financial security…which will help you to sleep better at night.

Step Into Your Greatness.

Yvonne

Despite all of the hype there is no secret to becoming wealthy. The book The Millionaire Next Door showed that the average millionaire is someone living in your own neighborhood. It’s someone who’s taken the responsibility to be financially self-sufficient. 

You can’t readily identify your local millionaire.  Why?  Because  she is not driving a flashy car; isn’t decked out head to toe in designer clothing and isn’t lounging at the country club. This millionaire however isn’t in debt; has paid off her house; can afford to pay for her children’s education; and has general peace of mind that she can comfortably meet her household expenses on a regular basis.

If you want to be wealthier than you are today, you only need to do four things:
1) Earn a decent salary
2) Spend less than you earn
3) Invest the money that you don’t spend so that it can make you more
4) Protect yourself and your money so that financially you can withstand a change or emergency

The reason that you’re not as rich as you’d like is because like most women, you’ve set up “money blocks” aka excuses that prevent you from:
Earning a higher salary
Saving more of your income
Keeping as much as you’d like for the future

Do any of these “money blocks” aka excuses may sound familiar to you?:
“I’m not good with money.”
“Given the economy, I can’t ask for a raise (or raise my rates).”
“My husband/partner handles our finances.”
“You only live once, so I’m going to buy some Jimmy Choo shoes.”

I’m here to give you a wake-up call:
If you’re not handling your money you are not taking care of yourself. You also aren’t taking care of your kids, your spouse or your aging parents. If you don’t take control of you money voluntarily, unfortunately life has a way of throwing you a curve, such as a job loss, an illness, a death or a divorce, which forces you to pay attention to the state of your finances.

If you’re like many women, you know that you need to get a hold of your finances but you’re not sure where to start.  If the topic of money scares you, overwhelms you or just makes you feel stupid, then I urge you to register for my FREE preview teleseminar, “The 3 Keys To Creating Your Financial Freedom” that takes place on Tuesday, March 9, 2010. On this call you receive easy to follow, but valuable information about how you can create financial security for you and your family.

If you are a mother who’s doing income-generating work rather than volunteering, it’s probably because your salary helps your family meet its needs. Your check may pay for basics like the mortgage or extras like ballet lessons and school tuition.

It’s therefore important that you make financial decisions that are not only aligned with your personal goals but that also allow you to thrive as your life and your family circumstances changes.

This is the 5th and final post in my week-long series, How to Love Your Life Now and Stop Being a Stressed Out, Guilty Working Mother.

To recap on the series topics:

Yesterday’s post: Why Self Care Is Important for Working Mothers discussed the need for you to reguarly re-charge your batteries, especially if you want to be fully engaged as a mother, partner and professional.

Wednesday’s post: Learn How to Ask for Help: Develop a Support System

Tuesday: Get Happier By Creating Personal Boundaries

Monday’s Stop Trying to Balance Family and Work

This bring us to my principle #5 Build a Strong Financial Vision

Making money is the chief reason why mothers work. It’s important however to determine whether you lifestyle (your family’s or your wants rather than needs) is forcing you to work longer hours than you’d like or at a job that you dislike. Similarly you can’t make an educated decision about scaling back your work or starting your own business if you are unclear about state of your family’s finances.

To take charge of your household’s finances you need to:

a) Understand Your Household’s Cash Monthly Flow (what’s coming in and what’s going out)

b) Know all of your family’s assets and liabilities

c) Put money in your own name.

d) Establish credit in your own name.

e) Know your credit scoreIf you need help in creating your financial vision or with any of the other four topics I’ve discussed in this series, schedule a Working Moms StartUP session  Please drop me an email at Yvonne@SophisticatedWomanandMama.com to for the details. You can also contact me on Twitter at Twitter.com/YvonneBynoe