Budgets and Diets: Restriction or Freedom?

Women spend $25,000 on shoes and in Britain L 133,000 on beauty products in their lifetime.*  Saving for retirement or saving period gets pushed aside with the “I want what I want and I want it now” pattern we consumers are so good at.

One of the biggest mistakes women say they make with their money is not saving enough for the future because they’re caught up in survival today. This is an interesting dilemma because by spending today and not saving for the future, the struggle is likely to be the same in ten or thirty years. Contrast this with one young woman, Kari, who considers herself a “money hoarder.” She started saving half her paycheck as a teenager. She finds it hard to spend money on herself, but she’ll be fine in retirement. There aren’t many Kari’s out there.

Putting ourselves on a savings plan feels the same as being on a diet. Yuk. We feel restricted, limited – it’s NO FUN. Or we feel we’re in jail waiting for a chance to bust out – shoe sale anyone?  According to Gary Becker and Kevin Murphy in “A Theory of Rational Addiction*” when you're struggling economically you’re unlikely to focus on long-term activities. The immediate is much more compelling.  

There’s a mind-set change that needs to happen to be able to have some shopping fun, while keeping in mind the long term goal of having financial peace in your later years. Just think about how good those shoes might taste if you’re trying to make it at 75 on social security alone.

*Daily Express Study quoted: http://tinyurl.com/2a2cvjw  Mail Online  http://tinyurl.com/67z36fd

* The Awesome Column, Joel Stein, The Times May 2012

Women in Business: Are you a Financial Innocent? April is Financial Literacy Month

April is Financial Literacy month – time to pull your head out of the sand and plunge into learning about your relationship with Money. Not just the numbers – how much you make or what you spend - butwhat goes on with your thinking and your feelings about money.

Inside you is the answer to why you keep repeating the same old money mistakes over and over again. Here are some money mistakes women make: Overspending, Not paying your bills on time even though you have the money, Financially enabling others and not taking care of yourself, or a big one for women in business; Not charging enough!!

You may be like I used to be: I hated thinking about money. But, I had an awakening when I went through the training to become a Certified Money Coach.*  I found out exactly why I had the challenges with money I’d had since young adulthood. Yes, it did have to do with the way my parents handled their money. Not their fault, their parents had influenced them as well, and I was still responsible for the choices I made. But once I connected the dots and became conscious, I was able to make better financial decisions and to create less stress and more financial peace. That’s huge!! .  (*Certified through Deborah Price & The Money Coaching Institute)  Next time: Find out What The Money Types Mean and how each type shows up in your Money Life.

Resuscitate the American Dream with Hope, Change & Personal Responsibility

Resuscitate the American Dream with hope, change and personal responsibility says Suze Orman in her newest book, The Money Class. The American Dream our parents embraced was one of living BELOW their means. This is a lesson we lost track of in the obsession for MORE that advertisers promoted and we indebted ourselves to (in oh so many Visa and MasterCard ways).

We need to not only rescue the American Dream as Suze says, but resuscitate it with the old virtues of hard work and sacrifice. Boring, and so not exciting as the lifestyles of the Kardashian's or Jersey Shores, but realistic.

Suze says, and I agree, that we must move beyond materialism – an empty value if there ever was one – to authentic happiness. But we Americans are programmed to believe that more money equals happiness. This is an illusion that lottery winners, for example, often realize too late. (Most are bankrupt or broke within 5 years)

I have a two-part question I ask at Money Workshops and trainings that comes from David Krueger’s book The Secret Language of Money.

1)    My current annual income is $__________________.

2)    In order to insure happiness and contentment financially, with no more money problems and worries, my annual income would need to be ______________________.

Most people answer #2 as being about twice the amount of #1. For example if #1 = $50,000, then to insure happiness I’d need to make $100,000. But once a financial goal is reached, what do we do? Set another goal and it’s often about twice the size of the first. When do we get to be happy and have financial peace?  

Let's create a new American Dream by educating ourselves about money and prioritizing what is most important and what we value. And, by the way,  a 2010 survey Suze cites by Charles Schwab & Co. says 75% of respondents understand that to create a new American dream, it takes hope, change and personal responsibility!!  That's true financial peace.

Women in Business: Work Backwards Formula to Achieve Bold Money Goals

Now that you’ve set your Bold Money Goal for 2012 and have it in writing (see previous blog: Set a Bold Financial Goal for 2012 /blog/  you'll want to use The Work Backwards Formula to make sure you get the results you want.

To Re-Set your Money Speedometer, which may have been stuck on the same old number for too long, means you have to examine WHY you want to make the amount of money you set for yourself. Your WHY tells you what your motivation is. (To know why your WHY is the most important thing you can do as a woman in business go to this youtube clip in the TedSeries by Simon Sinek:  The Golden Circle http://blog.ted.com/2010/05/04/how_great_leade/

Now, I know the economy has dampened, or for some, even smashed the ability to dream and envision. But we have to take our power back and stay focused on what we want (financial peace & freedom) vs. what we don't want (more financial struggle)  

To Start - Here are some questions to explore your WHY: This is where you get to dream and in order to be the most successful you must stay in touch with your dream and your purpose!!

Next, write down your BOLD Goal for 2012 :  $75,000 Gross

I want to make $_______ so that I can ________.

• ·      
• ·      
• ·      

 The questions you answered above are part of your vision and dream that will pull you towards your goal.

Now fill in these Work Backwards questions:

1)    How much do you charge your clients? The average bodyworker, for example, depending on locale, charges somewhere in the neighborhood of:   $75.00 an hour  Your hourly fee:  _________

2)    How much do you need to earn a month to earn $75K a year? $6,250 (75 divided by 12 = )

3)    How much do you need to earn a week to earn $75 K a year? $1445.00  (6,250 divided by 4.33 = 1436. Rounded up)

4)    How many clients a week do you need to see to earn $1445?  19 clients a week at $75.00 a client = $75,000 Gross Income

Now you have your work-backwards formula to earn $75,000 gross a year.  

Women in Business: What's Your Money Speedometer Set At?

If you're a woman in business you need to know what your money speedometer is set at. For example, are you stuck at a certain income level and don't know why? Usually it's because of stuck places within our emotional relationship with money we're completely unaware of.  Bob Burg, author of The Go Giver says: “Our relationship with money is like an iceburg: only the very tip is in plain sight.”  How do you find out what's under the surface of your money obstacles? One way is by figuring out where your $$ speedometer is set and re-setting it.  Here's how to do so:

First: Where's Your Money Speedometer Currently Set:* Most self-employed women's monthly income is up and down so take the 5 highest grossing months over the last 12 months and add them together and then divide by 5.

For Example:  Feb 2,000 March 2,200  July 5,000 Sept 3,500 Dec 1,200 = TOTAL 13, 900 divided by 5 = 2,780

This woman’s Speedometer is set on: $2,780 That means when she starts earning more than this a month she probably gets uncomfortable. That's ok, but she needs to understand why (This is where Money Coaching's 4 step system pulls back the covers and connects the dots between childhood messages and current adult money behavior - http://coachingmodesto.squarespace.com/money-coaching/)

Re-set your current money speedometer by creating a BOLD Financial Goal for 2012. This number needs to be uncomfortable enough that it makes you STRETCH, yet not so distant that it seems unreachable. 

For example my BOLD goal for 2012 is $84,000 gross sales. That’s not a number I pulled out of the air, but by looking at what I earned last year, and planning activities I would need to do to earn $50,000 net income minus estimated expenses.

Write your Bold Goal _________.  Then create a plan of action steps and strategies for how you’ll reach your Bold Goal by working backwards.  I’ll show you how to do that in an upcoming blog. By taking ahold of our money goals and knowing how to chart our financial future we create financial peace.

(* adapted from Kendall Summerhawks Money Speedometer work)

Massage Therapists & Healers - Set a Bold Financial Goal for 2012

  “Are you living your values, but not earning enough to live your dreams”, asks Lois Frankel, of Nice Girls Don’t Get Rich. As a therapist and “healer” I was stuck in that “I’m a healer so I can’t charge what I’m worth” illusion for years. This is a common problem for women in business who are in the helping professions. We have a black and white way of thinking about money and helping people.  If we are helpers then we believe we shouldn’t be focused on earning money. What nonsense. I’ve figured out there is a middle ground and we can have both – be happy healers with a bountiful paycheck.

Unfortunately, most of the therapists/healers I’ve known over the last twenty + years are crappy business women. Meaning, they don’t market their practices or treat their practice like a business. For example, as a massage therapist, family therapist, energy healer – do you have a business plan, a marketing plan, attend networking functions, join The Chamber of Commerce, pay attention to cash in and out flow, regularly do a balance sheet and a profit and loss at least quarterly? That used to be me, but I’ve found my inner business savy and it is blooming!!

One important step to break out of the old “I’m a healer, it’s not spiritual for me to make money” rut is to set a BOLD Financial Goal for 2012. Do that today and in the next blog learn where your money speedometer is set and how to reset it to match your Bold Money Goal. When we take charge of our money we create financial peace.

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Lynn Telford-Sahl, M.A. Psychology, "Certified Money Coach":http://www.lynntelfordsahl.com, helps women in business achieve their dreams by getting their money house in order. Lynn has been coaching, speaking & conducting workshops for 8 years and has a 20+ year background in counseling. Lynn is also the author of two books: Intentional JOY: How to Turn Stress, Fear & Addiction into Freedom & The Greatest Change of All. Both books are available online at www.coachingmodesto.com. As an experienced "money coach for women in business":http://www.lynntelfordsahl.com, Lynn offers a FREE 15 Minute phone consult for any Money Challenge you are experiencing. (209) 492-8745 orlynntelfordsahl@gmail.com

Women in Business: Keep Your Foot on The Gas Pedal!

 The 1.6 Billion Dollar woman in business, Facebook’s second in command, Sheryl Sandberg says “women need to keep your foot on the gas pedal and aim high.” Ms. Sandberg who was recently speaking at the World Economic Forum in Davos, Switzerland and her subject was women! Should Facebook’s launch go as planned Ms. Sandberg will be worth approximately 1.6 billion.  She’s one of a very few self-made women billionares. Go girl!!

Sheryl Sandberg is to the promotion of women in business as Steve Jobs was to the promotion of Apple. Her focus on women makes perfect business sense for her role in Facebook as 71% of daily fan activity and 62% of all activity is driven by women*. Women need role models who aim high and are super successful. Young women flock to hear her speak because she’s so passionate about empowering them.

All high profile people generate some backlash and there are those that say her wild success is because, as a woman in business, Ms. Sandberg has had luck and advantages others don’t have. It’s true, most women in business don’t attend Harvard or Harvard Business School. But she’s noted to be “super smart and savvy,” has obviously put to good use her business education, training and “luck,” and she’s dedicated to supporting more women into upper echelon positions.  Here’s a link to a YouTube video where Sandra talks about why women don’t make it into top positions and what to do about it. Excellent. http://www.youtube.com/watch?v=18uDutylDa4  (*NY Times, Feb 5^th 2012 The $1.6 Billion Woman, Staying on Message)

Women in Business Don’t Take Enough Financial Risks

Is it true that women in business don’t take the financial risks necessary to get ahead? We know that women still earn only 78 cents on the dollar compared to men and though there are plenty of women middle managers, there are dismally few at the CEO level. According to Lois P Frankel, author of Nice Girls Don’t Get Rich, these are symptoms that reflect the social training girls and young women receive about “doing good and being nice” over getting ahead. Making money and being the good girl, wife, or employee can be in direct opposition to a path of power and women will often pick the path of least resistance. Though understandable, this is not a great strategy for your bottom line, (and I don’t mean the bottom you sit on). This is especially true as women move into their retirement years.

What are the risks women should be taking?  To name a very few: 1) starting a new business or 2) investing in real estate or the market or 3) NOT giving their adult children money to bail them out of self-induced situations. This last one is a huge money mistake for women and pops up all the time with my Money Coaching clients.

Women in Business: Here are a couple questions to think about to give you Financial Peace:  1) Where do I sit on the risk continuum? Am I fairly conservative, risk aversive and so need to work for someone and get a steady paycheck? Or am I ready to leap tall “start my own company” buildings, and get sound business help to do so? 

2) What risk am I willing to take in 2012? It could be as simple writing down all your purchases for thirty days. As Ellen the talk show host says in her new book: Seriously, I’m Kidding, (paraphrasing) “Stretching is more than doing yoga, it’s taking risks.”