IT ALL STARTS IN MY BRAIN…?

It has been over a week now of just getting used to the commitment I have made to myself to get rich and share the wealth. Rather than let myself get overwhelmed with all I have to learn, I have decided to inhale a deep yoga breath and let out my gotta-get-it-all-done-and-it-has-to-be-just-right-right-now anxiety. Huhhhhhhhh.

Further investigation into my book collection indicates that the first place to start towards financial progress is really in my own brain. Who knew my feelings have so much to do with my financial situation? I guess it’s kind of obvious, more about that later. I like David Bach’s suggestion on where to start. He recommends considering the following question:

“OVER THE NEXT YEAR, WHAT ONE THING WOULD HAVE TO HAPPEN FOR YOU TO FEEL YOU’VE MADE GREAT FINANCIAL PROGRESS?”

I am supposed to make this as specific and measurable as I can. I should write it out and explain to myself WHY it is so important to me and HOW I will feel when I’ve accomplished it. I should write it in the past tense, as if I have already achieved it.

I’m up to the challenge. Anybody else? I am traveling to see my family for the Labor Day weekend and I will think on it with a full report on Monday. I am going to make my sisters do it too…..In the meantime, check out some of the links I have added to the right.

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TRUTH, CONFESSIONS and PLEA BARGAINING…

I just counted how many books about personal finance and investing I have on my bookshelf. 12. This does not include the books on starting a business, marketing and real estate. I pull “THE FINISH RICH WORKBOOK” by David Bach off the shelf. I remember now why I bought this book. On the cover is a beautiful woman with a beautiful body floating on beautiful blue water in a luxurious white raft with a beautiful tan man (in a speedo). Who wouldn’t want that life? Plus, it is offering to help me create “a personalized plan for a richer life”. Beautiful.

Flipping open the first few pages I come to this:

“ALL FINANCIAL PROGRESS BEGINS BY TELLING THE TRUTH.”

Taking a look around my place and having lived in this brain for long enough, I know what is true about me. I LOVE TO START PROJECTS I DON’T FINISH. This is evidenced by the large basket of filing I need to do, a bag of returns to Nordie’s from a month ago, and a bookcase full of half read books. When I lose interest in what I am doing, or never found it that fun or interesting to start with, I move on to something else. Not only have I told the truth, but I have confessed it to you. Next suggestion:

“the most powerful and effective way of changing your life is (1) to figure out what it is you want, (2) to write it down, and (3) to take action to bring it about.” LEARN IT, WRITE IT, LIVE IT.

Hey, I am on my way! I know what IT is (see BEING RICH DEFINED), I am learning it, I am writing about it, and now I JUST have to live it. I also have something powerful to push me if I start to lose steam, I have told someone I am going to do it. I know at least my mom, dad, two sisters, two brothers, two of my friends and my uncle are reading this and now I feel accountable. It would be even better if one of the GIRLS in my life would go through this process with me. Who is it going to be? Who wants to get rich with me? I would like a push/pull partner. I promise I won’t be too bossy. : )

TELL IT SUZE.....

We are making more money than ever before, but we are clueless about what to do with it? Wow. Is that me? Or my girlfriends or sisters? It might be. This can be fixed. Am I clueless? I do ask myself that question on a somewhat regular basis, but that has nothing to do with money... I don't think I am clueless, I think I have been guilty of something even worse. Lack of focus. Notice the use of past tense. I week ago I decided to focus, hence these words before you. I think I have a book of Suze's on a shelf somewhere...

COMBINING MY INTERESTS, WITH COMPOUND INTEREST...

One of my greatest joys in life, making me very rich indeed, are my 15 nieces and nephews. Tonight I was talking with my sister about the 3rd annual “Auntie Eve’s Birthday Party” I am throwing this weekend. This is an afternoon in which we celebrate ALL their birthdays ALL at once (I can no longer keep up with them individually!). This is very convenient for me as I try to maintain my status as Favorite Auntie, and they don’t care because they are ALL under 10, and there’s cake. Because I don’t have kids of my own, my instinctual desire to nurture and nudge little ones along leads to grandiose plans to teach with the gifts I give. When I actually get down to it, it usually ends up as a magazine subscription to National Geographic Kids or something of the sort…but I digress. This year I am going to make a contribution to their saving accounts and teach then the fabulous lesson of THE JOYS OF COMPOUND INTEREST. This is defiantly a viable path on the road to riches, and I wish I had internalized it at their age and not somewhere in my early thirties. Check out the COMPOUND INTEREST CALULATOR I have added to the right. If I start them out with $25, and they add $100 per year until they are 18 (in the case of my two 7yr old nieces,) at 5% interest and no bank fees, they will have $1,534.47. This will seem like 1 million dollars to them, and hopefully plant a financial awareness seed in their fertile young brains that will someday grow into a giant oak of living rich. (I warned you I get grandiose). At the very least it might incent them for a few days to ask mom and dad how they can help around the house for some cash, and provide me and their grandparents an easy and productive way to give them future gifts. Win/Win.

To find the best interest rates in your city, check out this link:

http://www.bankrate.com/brm/news/news_checking_home.asp

THE SUBPRIME BLAH BLAH...HUH?

I have had a few "Joey" moments lately with my co-workers. For those who have not watched enough re-runs of "Friends," let me explain. This is a situation in which your friends are having a discussion regarding something that you are completely clueless about, while they seem to know everything and are able to discuss it articulately. My best attempt to camouflage my ignorance is to look concerned and nod my head like I know exactly what they mean, or act distracted by something else (magazine, something stuck to the bottom of my shoe). One such recent occurrence involved the SUBPRIME MORTGAGE CRISES. What is it? What does it mean? How does it affect me and my plans to get rich? I had to know so I did some research. Here is what I found:

The ‘US Subprime Lending Problem’ — explained in simple terms
from Pinoymoneytalk.com

Global stock markets are down, investors are on selling mode, and almost all of 2007's stock gains have been wiped out. The culprit, analysts say, is the current US subprime lending problem.
The subprime — what? And if it's supposed to be a problem in the US, why is it affecting markets in Europe and Asia?

What are Subprime Loans or Subprime Mortgages? These are loans or mortgages made to homeowners with poor credit ratings. Loans made to these people are of considerable risk because these borrowers are more likely to default on their loans since they already had financial problems before taking on the loan.

After a subprime loan is issued to homeowners, issuing banks usually sell these loans to investors. To compensate for the high risk, subprime loans typically pay higher yields. Attracted by the higher yields, a number of mutual funds and hedge funds in the US invest in these loans.

What is the current Subprime Lending Crisis? Beginning in late 2006, many subprime mortgages have become delinquent as homeowners run into financial difficulty. More than two dozen subprime mortgage lenders have already failed or filed for bankruptcy due to rising incidents of subprime foreclosures.

How is this affecting the markets? A number of hedge fund companies and investment banks that invested in subprime loans incurred millions of losses or even went bankrupt due to the subprime lending problem. The possibility of tightening credit conditions also caused volatility and panic in the US stock market, which consequently sent fears to European and Asian markets that the US, one of their major trading partners, is on the verge of an economic recession. These fears and uncertainties are responsible for driving world stock markets to their recent lows.

ALSO, CHECK OUT THESE LINKS TO OTHER EXPLAINATIONS:

http://www.businessweek.com/investor/content/mar2007/pi20070313_837773.htm

http://en.wikipedia.org/wiki/Subprime_meltdown

https://www.oppenheimerfunds.com/targetedCopy/InvestorPages/investorTimelyTopics/invArticles_08-10-07-153925.jhtml

MONEY GIRL PODCASTS...

Look what I found on iTunes. It's a podcast called Money Girl, Quick and Dirty tips for a Richer Life. Perfect. I discovered Money Girl a few months ago and look forward to each new installment. Money Girl covers all different topics from making financial goals and improving your credit score, to leveraging investments. She is very perky and gives clear and easy to understand tips. I have included a link to the site where the podcasts are available for download, or you can just read the script. For me, podcasts are a great distraction while doing my cardio, with the added benefit of learning how to get rich. Two birds, one stone.

My favorite tip so far is about SELF DIRECTED IRA'S... from the podcast entitled "Investing With A Self-Directed IRA." I learned that with such an IRA you can invest in just about any kind of Asset. The only types of assets you cannot invest in are: Collectibles (for example, art, antiques, jewelry, or coins other than U.S. gold coins), Life insurance and S corporations. We are not limited to stock, bonds, and mutual funds! Being a girl who is all about options, I decided to use my Roth IRA funds to buy ownership in a Limited Liability Company that is developing and selling office condominiums. There are many benefits to a Roth IRA, one of which is you never have to pay CAPITAL GAINS taxes on the earnings you make within your IRA. Tax Free Money! Yeah! I had to do some research to find an IRA CUSTODIAN who would hold real estate as an asset (a "Non-Standard Asset). With these Custodians there are fees involved, whereas other traditional Custodians (Banks, Brokerage Companies) will hold your investment portfolios for free (ie TD Ameritrade). I looked into several companies and decided to go with Pensco Trust. Each time I called I was able to speak with someone immediately, and their rate schedule is reasonable and competitive with the other companies I checked out.

If you want to learn more about SELF DIRECTED IRA'S, check out their website: http://www.penscotrust.com/.

ONE ROAD TO RICHES...

I decided about a year and a half ago to join a women's investment club. I figured it would force me to learn more about investing and I would get to make new friends (yeah). I have a stack of books at home all involving investing, of which I have read and implimented not a one! I am better at getting stuff done when I am accountable to someone else, plus it's more fun.

My friend Bonnie introduced me to the club I joined. The MONI CLUB was formed more than 10 years ago out of a book club. They were reading a book about the Beardstown Ladies who were famous for their investment savvy. They decided to spend their time teaching each other about investing instead.

We are now 12 girls who meet every 2nd Saturday of the month. We eat danish, gossip a little and talk about the stocks in our portfolio. We pay monthly dues of $75 each which creates the fund we use to buy stocks. The first year I spent just listening to what the girls were talking about, trying to make sense of it. I didn't put a lot into it, and I didn't get alot out. This past January I volunteered to be the Financial Partner (the one who takes care of the accounting for the club) and since have become inspired to learn more and participate actively in helping our group meet our goals.

The great thing about investment clubs is that you have access to people with different interests, jobs and life experiences from your own. The first thing any investment book will tell you is INVEST IN WHAT YOU KNOW. Now you have the power of what you AND everyone else knows to broaden your investment options. Plus it gets you out of the house, and did I mention DANISH?

Our club belongs to a larger investment community called BETTER INVESTING, the governing body for investment clubs all over the country. I have added a link to the site if you want to check it out.

BEING RICH DEFINED...

While I am working out the HOW to get there, I am a little clearer on what it WILL look like when I get there, this place called "rich." In all my reading of motivational, entrepreneurial, and personal development books I have become pretty good at the first step they all suggest as a starting point...HAVE A VISION. Without getting too kumbaya about it, MY IDEA OF BEING RICH IS HAVING ENOUGH FREEDOM TO DO WITH MY LIFE WHAT BRINGS ME THE MOST JOY.

Top Ten Things that bring me JOY:

1. Being able to live with myself and my decisions
2. My Family
3. My Friends
4. My Health
5. Service to others
6. Interesting and Challenging Work
7. Learning new things
8. Having new experiences
9. Getting enough sleep
10. Shopping

I am not going to lie, I do like to shop. I like shoes, clothes, books and Crate & Barrel. Very much. I am mostly a DO girl, but partly a HAVE girl and I'm ok with that.

What is your definition of rich?

HERE I GO...

I am going to get rich. I am not entirely sure how. I have a few ideas, a few books, I have watched all the episodes of Oprah where other people just like me have done it. I am going to do it and I am going to tell all about it here, just in case anyone else wants to learn how to get rich too.

They say write what you know, and if there is one thing I know, it's how to be a girl. So although boys are invited, encouraged, and loved, this one is for the ladies.