1. We save money instead of investing it. Women are afraid to invest because they don't understand how.
2. We're financial ostriches. Many of us avoid thinking about money - as long as there are checks in the checkbook, we keep writing them.
3. We spend too much money. Women spend more of their discretionary income than men, says Lois Frankel, author of Nice Girls Don't Get Rich. It's invariably for small stuff, like pillows and candles and clothes that hang in the closet with the price tags still attached, instead of important assets like a house. "If it's on your a--, it's not an asset."
4. We abdicate responsibility for our money. For instance, recently widowed women often turn over the management of their money to the first friendly man who offers to help, and risk getting scammed.
5. We're do-gooders. "I don't care what your favorite cause is. If you're giving away money but not taking care of your financial future, you're making a big mistake," Frankel says.
6. We don't put investments in our own names. Any woman who lets her husband put the house in his mother's name "for tax purposes" will wind up with nothing in case of divorce - and her ex will get the house.
7. We think we don't have enough money to invest to make a difference. But by investing as little as $50 per month in a no-load mutual fund, it's possible to create a nice nest egg. Every dollar counts.
8. We delay our home-buying. Too many women wait for Prince Charming. A house is one of the best investments you can ever make.
9. We don't leverage our company's contributions to 401(k) retirement plans. Young women are most prone to this mistake. When you're 22, it's hard to picture yourself as a 65-year-old woman.
10. We don't negotiate. Women typically think it's scary to negotiate for a lower car price or a higher salary. But research shows that men think negotiating is fun. Maybe they're on to something.
'It's easier to marry a rich man than a poor man,' 'Money doesn't buy you happiness' and 'Your college education isn't so important - it's just a backup.'
While these may sound like the kinds of things women heard in the 1950s, some women are still hearing them now. It has helped create a culture which discourages women from taking control of their own finances, according to Lois Frankel, author of Nice Girls Don't Get Rich: 75 Avoidable Mistakes Women Make with Money.
Please see the sidebar for tips on having the money to live the life you want...free from worry about money.
Thank you for your time and for sharing comments that help me make this newsletter better. I hope you are taking away something that helps you live your best life!
Warmly,
Lee Sumner is a Certified Professional Coach based in Birmingham, Alabama, who has helped hundreds of people create high-quality lives. She is President of No Limits Coaching and is a popular speaker, columnist and facilitator. (205.870.1877)
