Why do so many women have issues with their money? One reason is that talking about money is more taboo than sex. We don’t talk about it. Let’s face it, we don’t even like to think about it. I understand. Let’s not think about money – let’s go shopping and make ourselves feel better. We humans are wired for instant gratification. There’s a chemical reward that comes from shopping that just isn’t there planning for retirement or putting a budget together.
What are the big mistakes women make with money?
1) Women piddle away too much money on things they don’t need or that don’t build wealth. How many pair of shoes do you have in your closet? How many pairs of black pants or jeans? I know, they’re different sizes - just in case. But…still. When you’re 80 and needing money for medical, or long-term care or a little fun, what kind of value will those purchases today really hold for you?
2) Women think retirement will somehow work itself out. The truth is that too many women retire in poverty and that women who get divorced or widowed are even more vulnerable. Deborah Price, author of Money Magic, says that most women that divorce or are widowed are out of money in 5 years. More than twice as many women as men lived in poverty in 2009, according to the AARP.
3) Women don’t understand their money story. Your money story is about more than your money - it’s about everything – everything we eat, drink, buy or fear. Our money story is about the meaning money has in our lives and the respect we pay to it or don’t. Here’s a start: Think about your earliest money memory and how that one memory has affected your life. Next: what's your greatest money challenge? Just taking the time to be honest with yourself about that is a move in the right direction.