girl$ get rich

P/E DOES NOT STAND FOR PRETTY/INTERESING...

2009-09-11T18:58:00.001-07:00

But alas, the P/E Ratio is a basic tool used in the world of fundamental stock analysis, so knowing what it is, is pretty/essential.

From ABOUT.COM: STOCKS

If there is one number that people look at than more any other it is the Price to Earnings Ratio (P/E). The P/E is one of those numbers that investors throw around with great authority as if it told the whole story. Of course, it doesn’t tell the whole story (if it did, we wouldn’t need all the other numbers.)

The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular metric of stock analysis, although it is far from the only one you should consider.

You calculate the P/E by taking the share price and dividing it by the company’s EPS

P/E = Stock Price / EPS

For example, a company with a share price of $40 and an EPS of 8 would have a P/E of 5 ($40 / 8 = 5).

What does P/E tell you? The P/E gives you an idea of what the market is willing to pay for the company’s earnings. The higher the P/E the more the market is willing to pay for the company’s earnings. Some investors read a high P/E as an overpriced stock and that may be the case, however it can also indicate the market has high hopes for this stock’s future and has bid up the price.

Conversely, a low P/E may indicate a “vote of no confidence” by the market or it could mean this is a sleeper that the market has overlooked. Known as value stocks, many investors made their fortunes spotting these “diamonds in the rough” before the rest of the market discovered their true worth.

What is the “right” P/E? There is no correct answer to this question, because part of the answer depends on your willingness to pay for earnings. The more you are willing to pay, which means you believe the company has good long term prospects over and above its current position, the higher the “right” P/E is for that particular stock in your decision-making process. Another investor may not see the same value and think your “right” P/E is all wrong.

For the more visual learners such as myself, below is a hot european guy giving a good explanation of P/E and it's relevance in considering a stock.

Hot european guy (H/E/G) uses the future earnings method to determine the P/E, where the most common (or so I have read) method is to use the "trailing" or last 12 months earnings instead.

In this video the guy with the great hair is discussing P/E and it's relation to actual earnings.

Increasing P/E Ratios - How Much is Too Much? - The most amazing bloopers are here

And in this video, the guy who says uummm a lot presents some interesting facts and perspective about the current S&P P/E. He says CAUTION AHEAD!

P.S. I originally put this post together for the blog I created for the women's investment club I belong to. We call ourselves the M.O.N.I. club.

FINANCIAL WEAPONS OF MASS DESTRUCTION

2009-09-02T08:58:00.000-07:00

I posted this video on my other blog, click here.

That's Billion with a B...

2009-07-30T22:02:00.000-07:00

From the New York Times:

Thousands of top traders and bankers on Wall Street were awarded huge bonuses and pay packages last year, even as their employers were battered by the financial crises.
All told, the bonus pools at the nine banks that received bailout money was $32.6 billion, while those banks lost $81 billion.
Some compensation experts questioned whether the bonuses should have been paid at all while the banks were receiving government aid.

Ya think? I feel like I stumbled into Alice in Wonderland where a fat caterpillar is smoking a lot of hookah, speaking a bunch of gobbledygook and advising me to take mushrooms so I might understand it all. Is it opposite day?

I'M MAD AS HELL...

2009-07-27T22:19:00.000-07:00

I am getting scammed by the government. Specifically the Parking Violations Bureau of the City of Los Angeles. I went away for Memorial Day weekend, and apparently an officer who was having a particularly low competence day decided to up their average and write me a ticket for missing a license plate. I was parked in Parking Lot C at LAX. There was no ticket on my windsheild, I heard about it a month later from a letter letting me know that I better pay it, lest I start accruing additional fines. Now, this is outrageous because BOTH MY PLATES WERE ON, HAVE BEEN ON, AND ARE STILL ON! The tags are even up to date (which I am proud to say that for the first time in many years, I did not let them expire and get a ticket before I updated them). When I called to complain the gal who spoke to me said that the ticket wasn't even valid because it didn't indicate if the front or the back plate was missing, and that it would probably go away. I felt pretty good about that, I wasn't going to have to waste any more of MY TIME on this foolishness. Not so. A month goes by and Thursday I get another letter saying that the ticket is valid, my front plate is missing, and if I want to avoid paying the $25 fine (plus fees if it is not paid within 21 days), I have the option of submitting the following items:

1. A copy of the letter with the proof of correction verified by signature from a law enforcement agency or a dated photograph of the front of the vehicle with the license plate properly attached to the vehicle.

2. $10.00 reduced fine amount per citation plus any late penalty amounts.

This is B.S. I called the office again, got the typical rude girl who wouldn't let me get a word in edgewise, and after she had worked me into a frenzy of anger and bewilderment, offered to transfer me to the office were I could take MY TIME to make my case at a hearing over the matter, after paying the fines. Oh, and by "offering" to transfer me she mentioned that it would cost $2 to transfer the call and hung up before I could even blink. A recording instantly came on "offering" to take my credit card information. I hung up and lost it. I called my district councilman and complained to one of his people. They said the were sorry, had received tickets at the airport before and "that is frustrating" but they couldn't help me and I will have to go through the process. I AM NOT PAYING IT!!! THIS IS THE LAST STRAW!!! I will not pay $25 or $10 or $2! I have been wondering were all the rage is over what has happened in our economy. Today I found mine. They cannont have my money for a bogus, doctored ticket that I didn't earn so they can pay for Michael Jackson's funeral.

...AND I'M NOT GOING TO TAKE IT ANYMORE!

HELP ME OBI WAN KENOBI...

2009-05-06T22:09:00.000-07:00

I am not someone who likes to reinvent the wheel. Instead I like to take the more efficient route of finding an expert to show me the ways of the Jedi. What I look for in an Obi Wan is someone with whom I share the same values, who inspires, motivates, educates and provides pathways and strategies to get where I want to go. Luke Skywalker had Obi Wan Kenobi. I have Suze Orman.

Suze has all the a fore mentioned qualities and clearly has "the force." She is EVERYWHERE and in EVERYTHING. She has several books, a TV show, a website, podcasts, and makes appearances all over the world. She is also a friend of Oprah's, another Jedi Master.

Because I so admire her accomplishments and success, and because I want to do what is necessary to live rich, I am spending the month of May studying Suze. Dr. Maxell Malz, suggests that if there is a quality or behavior that you would like to acquire, you should pick someone who has that quality and learn more about them. His method is to "...study (them) for a month, to get so intimately familiar with the way he or she thinks that you can sit down and have a conversation with the person and solicit advice and coaching in your imagination." I will use her wisdom like a light saber against the evil forces of the The Empire at Bluefly.com (Cue Star Wars theme).

On a side note, Yoda has some profound ideas! Use the sunken ship as a metaphor for pulling your __________ (fill in the blank) from the swap in Dgobah.

HERE I GO AGAIN...

2009-05-03T14:24:00.000-07:00

I started writing this blog in 2007. Within the first few posts I admitted that I have a short attention span and start and stop things all the time. I had a good run at posting and then one day, stopped. So here I am now re-interested and re-wanting to share info I learn from experts and other folks on how to get and live rich.

At this point I am the only one reading this blog I am sure. I 'll tell my mother and my sisters and my best friend that I have started up again. Those women know me pretty well but in case someone else accidentally winds up on this post, here is how I define RICH:

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

In the theme of this post, I offer you this: HERE I GO AGAIN! I...can't...stop...laughing! It's brilliant and Tawny Kitaen was hot. Someone should bring big hair back as an economic stimulus maneuver.

GIRL, YOU KNOW IT'S TRUE...MONEY IN YOUR 40'S

2008-06-08T17:46:00.000-07:00

I turned 40 this week. I reminded my dad that he now has a child who is "over-the-hill," he said that isn't possible given the fact that my mother is still a spring chicken. Nice.

A milestone birthday like this one requires a good look at myself and where I have been, where I am at, and where I am going. Looking back to where I have been there are some regrets (certain boys, not appreciating my 19 yr old thighs, my love for Milli Vanilli), but overall I feel pretty good about it. Now I have a decent amount of experience to know what needs to be done going forward, and how to do it a little more gracefully. Trying to judge where I am at, specifically in regards to finances, I came across the above interesting table on Money Central at MSN.com. This is just a portion of the whole table put together from results of the Federal Reserve's 2004 Survey of Consumer Finances. See the whole thing here. While this doesn't tell me where I should be, it fulfilled my curiosity for knowing what the averages are, where my peers are at. Looking forward to where I am going, Liz Pulliam Weston suggests that in your 40's "The time for mistakes is over. If you haven't begun to build wealth, to control debt, to look toward retirement, then now is the time." Read her article Money in your 40s: It's make or break for some suggestions on how to do it.

All this reminiscing and planning has made for a lovely and productive afternoon. At midway through my life I can gladly say that I have laughed a lot, and want to share some with you. Click here. (I would still make out with either one of those guys, if they were still around). : )

HOW MUCH SHOULD I BUDGET...?

2008-05-07T22:48:00.000-07:00

To B or Not to B. That is the question. In this case B = BUDGET so the answer is YES... B, you should definitely B.

It's easy to figure out where you want to spend your money (shoes, spa treaments, vacations, shoes) not so easy to figure out where you should. Here is a chart with some wiggle room that I like and helped set my budget.

Housing = 35 - 45%

Auto & Transportation = 15 - 25%

Food = 10 - 20%

Installment & Loans = 10 - 20%

Utilities = 8 - 15%

Medical = 8 - 15%

Personal = 5 - 10%

Saving & Investing = 5 - 10%

Clothing = 3 - 5%

Some great "how to's" and video tutoring is available at practicalmoneyskills.com. Click here to view Jean Chatsky's Budget Building Series, and download a FREE (Mac & PC) budgeting software here called MY BUDGET PLANNER.

Budgeting is an extremely important part of any good financial plan that most of us choose to ignore. Only 40 percent of Americans use a budget to plan their spending, but 60 percent of Americans routinely spend more than they can afford, in at least one area of their lives. So unless you are Paris Hilton and someone just gives you money to do whatever with... DO IT! (and look what it did for her).

A WOMAN OF WORTH IN YOUR COMMUNITY...

2008-05-04T15:35:00.000-07:00

L'Oreal is donating up to $25,000 to the cause of a deserving volunteer who makes a difference in her community with their WOMEN OF WORTH campaign. Do you know someone who fits the bill? In addition to the donation, L'Oreal will make a $5,000 donation in the name of the winners to THE OVARIAN CANCER RESEARCH FUND (OCRF). Here are some of the requirements:

1. She must be a woman 18 Years or older

2. Have a record of exemplary service withing her community and the community at large.

3. Be able to demonstrate the impact of her work within her community.

4. Be aspirational and inspirational to others.

5. Demonstrate commitment to her cause.

6. Exemplify leadership.

7. Non-compensated.

TURNING LOSERS INTO TAX SAVINGS...

2008-04-27T16:12:00.000-07:00

From Kiplingers March 2008:

Losing money on an investment can be painful, but there is a positive side, you can use the losses to lower your tax bill. In fact, cutting your losses instead of waiting for a bad investment to recover can be a savvy tax-saving strategy. Here's why: each dollar of losses offsets an equal amount of taxable capital gains, you can also offset taxes on up to $3000 of ordinary income ($1500 if you're married and filing separately) if your losses are high enough. And if you still have losses left over, you can save them and use them to offset taxes in future years.

Paper losses don't count. To use this strategy, you have to actually sell an investment, such as a stock or fund, for less than you paid. That's why it makes sense to periodically purge losing positions that look hopeless. "You want to do this throughout the year," says Janice Johnson, a tax consultant in New York City. "You don't want to be caught selling at the end of the year when prices may be depressed."

Other losers I would like to get tax savings for:

1. All the time I've spent watching reality TV (except The Nanny & Wife Swap)

2. "The Heartbreak Kid" starring Ben Stiller

3. My last blind date

THE LONGER YOU WAIT, THE LONGER IT WILL TAKE TO GET STIMULATED...

2008-04-14T19:40:00.000-07:00

Putting off getting your taxes done may be costing you some sleep, may cost you penalties and finance charges, but it will delay your ECONOMIC STIMULUS PAYMENT, since payments are based on your tax return.

To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low-wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

The IRS has a handy Economic Stimulus Payment Calculator on their site if you would like to see what your payment will be. Cool.

STAMP OUT HUNGER ON SATURDAY, MAY 10th...

2008-04-13T18:18:00.001-07:00

The US Postal Service and Campbell Soup Company are getting together for a food drive on Saturday, May 10th. Participating is easy. Simply leave non-perishable food items in a sturdy bag (no expired items or glass bottles please) in front of your mail box and your mail carrier will pick it up. Your donation will be taken to a local food bank. Could it be any easier? Spread the word to your friends and neighbors. There are helpful downloads available at helpstampouthunger.com including a flyer for posting at work or around your neighborhood, and a Pledge Sheet and Collection Chart to get students excited and involved with the cause. You can even sign up to get a reminder email the day before. Last year the program delivered over 70 million pounds of food!

WHERE'S MY TAX REFUND? YOU CAN FIND OUT ONLINE...

2008-04-09T18:48:00.000-07:00

It's April, bringing heartburn to some (probably most of us) who push doing our taxes right up to the deadline, and anticipation to others who are waiting for their return. Can't do much to help with the heartburn except recommend mint tea and better planning next year, but to those wondering where their return is, guess what? You can find it online! Just click here to go to the IRS INDIVIDUALS page and follow the instructions. You have to wait at least three weeks since you filed electronically or six weeks if you filed by mail, to get your answer.

To get to your personal refund information, be ready to enter your:

Social Security Number (or IRS Individual Taxpayer Identification Number)
Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er))
Exact refund amount shown on your return

Don’t fall for any email scams about your refund! IRS never initiates emails!

STAGGERING CREDIT REPORTS...

2008-04-02T20:51:00.000-07:00

Oprah has AHA! and WOW! moments, sometimes I have DUH! moments. Here is my latest. I realized it was May and I had not done my annual check of my credit reports and FICO scores (I usually check them every January to start my year off right). I like to use annualcreditreport.com because it makes the process so simple. Here is a one stop shop to get your yearly FREE credit report from all three reporting agencies; EXPERIAN, TRANSUNION, and EQUIFAX. Just go to the site and follow the simple instructions. You also have the option of paying to get your FICO score from each agency ($6 - $8 each).

A couple of days later I was watching the TODAY show and hear Jean Chatsky mention that you should STAGGER getting your reports - one every 4 months - so you can keep an eye on any new negative or illegal activity. Of course! That makes so much sense. Keeping an eye on errors is a huge part of protecting your credit rating. According to a 2004 study (the latest available) by the Public Interest Research Groups, or PIRG, as many as 79% of credit reports have errors — 29% of which are serious enough to potentially result in a credit denial!

Click here for further information from SmartMoney.com about the importance of your credit report and how to improve it.

MEET MONEY GIRL....

2008-03-24T10:19:00.000-07:00

Here is one of my favorite things on the web, MONEY GIRL, QUICK AND DIRTY TIPS FOR A RICHER LIFE. This podcast is part of the QUICK AND DIRTY TIPS series, which are short and informative podcasts that can be downloaded onto your computer or MP3 player via their website or iTunes, FOR FREE! You can also read the transcripts as well as get additional resource information about the topic on the website. Why do I like this so much? Because it is convenient, very informative, and QUICK!

Enjoy the current installment entitled GOOD DEBT VERSUS BAD DEBT: Do you know what distinguishes good debt from bad debt?

THE CREDIT CRISIS...WHAT THE...?

2008-03-20T16:39:00.000-07:00

Since the writers strike I have had more time to pay attention to what all the experts are saying about the economy as I wait to get back to my job (as well as go through my piled up issues of Martha Stewart, and learning how to cut my own cuticles). I have watched many hours of CNBC and spent as much time online hearing the opinions of people a lot smarter than me give complicated explanations and totally opposite views on the outcome of it all. In the end I think I get the gist of it, at least enough to know how it is effecting me in the broad strokes so I can manage Eve's personal economy accordingly.

That's why I love articles like this from the New York Times:

Can’t Grasp Credit Crisis? Join the Club

By DAVID LEONHARDT

Published: March 19, 2008

Raise your hand if you don’t quite understand this whole financial crisis.

It has been going on for seven months now, and many people probably feel as if they should understand it. But they don’t, not really. The part about the housing crash seems simple enough. With banks whispering sweet encouragement, people bought homes they couldn’t afford, and now they are falling behind on their mortgages.

But the overwhelming majority of homeowners are doing just fine. So how is it that a mess concentrated in one part of the mortgage business — subprime loans — has frozen the credit markets, sent stock markets gyrating, caused the collapse of Bear Stearns, left the economy on the brink of the worst recession in a generation and forced the Federal Reserve to take its boldest action since the Depression?

I’m here to urge you not to feel sheepish. This may not be entirely comforting, but your confusion is shared by many people who are in the middle of the crisis.

AGRESSIVLEY WORK THAT INVESTMENT ACOUNT, EVEN AFTER 40...

2008-03-06T23:27:00.000-08:00

I have a significant birthday coming up this year. As a result I have become increasingly aware of talk show subjects such as "Love and Dating, EVEN after 40," "Feeling and looking your best EVEN after 40," "Feeling vital and worthwhile, and good for anything EVEN after 40." Ok I made up that last one up, but I actually heard the other two. I am starting to look forward to 40, not a lot, but a little. Maybe I will finally feel like a grown up, or maybe not, EVEN at 40.

Suggestions for those who need to play catch up in their retirement planning after 40.
from O Magazine:

The obvious advice from our panel to anyone who is behind in her savings is to spend less and save more, but John Claghorn has a further suggestion: " If you are going to be working for another two decades, and you are not going to be withdrawing money from your 401(k) or IRAs to buy a home or pay college tuition, invest as aggressilvly as you can tolerate.

IN YOUR 30'S - MAX IT OUT FOR RETIREMENT...

2008-03-04T22:47:00.000-08:00

Here's my story. I started contributing to a Roth IRA ten years ago. I thought I was totally on track because I maxed out my allowable contributions each year. Here is where I was clueless... I left it sitting in the Money Market account offered by the Custodian at the time, TD Waterhouse, and didn't invest it for several years. I might have done just as well growing that money if I had put it under my mattress! Bad idea. Money Markets sometimes earn far less interest than a regular Savings Account does. Now I know better, but I wish I would have read this article way back when...

From O Magazine - Amanda Robb
Now's the time to max out your contributions to your retirement accounts (if you haven't already). The easiest way to choose an appropriately aggressive retirement plan in to invest in a "lifecycle" or "lifestyle" fund -- one that automatically adjusts your holdings to less risky investments based on the number of years until you retire, says Suze Orman. For a rough idea of how much you'll need for retirement, Eric Tyson offers three scenarios:

1. You'll need 65 percent of your projected preretirement income if you save 15 percent of you annual income, are a high-income earner (generally more than $100,000), will own your home debt-free when you retire, and plan to live modestly in retirement.

2. You'll need 75 percent if you save 5 to 14 percent of your annual income and want to maintain your preretirement lifestyle.

3. You'll need 85 percent if you save less than 5 percent of your annual income, have to pay a mortgage or rent in retirement, and want to maintain your current lifestyle.

JUST IN CASE YOU DIDN'T GET IT...WHAT TO DO IN YOUR 20'S

2008-03-03T20:31:00.000-08:00

JUST in case you didn't get the March 2008 copy of O magazine, or JUST in case you skipped over the money articles starting on pg 162 because you had already read the whole rest of the thing and had dropped it in the tub a few times (that may just be me), I am going to give you the good stuff.

When it comes to retirement, "IS IT EVER TOO EARLY TO START WORRYING ABOUT LATER?"

You've heard it before: The most important thing is to invest in a 401(k) or other retirement account, and if you can't afford to contribute $15,500 to your 401(k) (the 2008 limit), at least set aside enough to maximize the amount your company will match. The challenge is to pick the right funds. "Choose your employer's most aggressive 401(k) fund," says John Claghorn, at RBC Dain Rauscher (Suze Orman's financial adviser). "The biggest mistake people make is being too cautious, especially when they're young." Susan Burke recommends: "Make sure your 401(k) fund has both U.S. and International stocks. The U.S. economy is growing more slowly than others, so you need to be globally diversified."

Two things...Suze Oreman has a financial adviser? Wow, that just goes to show you can never know too much about your money...and second, I wonder why they didn't mention the maximum you can contribute to your IRA in 2008? It's $5000 by the way.

Doesn't the above graph say it all? A better title for the article would have been START EARLY, AND DON'T WORRY ABOUT IT LATER!

TOMORROW...WHAT YOU SHOULD BE DOING IN YOUR 30's.

SUZE AND OPRAH ARE GIVING IT TO YOU FOR FREE...!

2008-02-13T16:13:00.000-08:00

This is not an Urban Legend or rumor, I actually saw it on Oprah today (one benefit to me of the writers strike, I am catching up on my Oprah viewing).

Until Thursday, February 14th (tomorrow) by 5pm Pacific Time, you can get a FREE download of the entire book WOMEN & MONEY from Suze Orman. Click on the book to go there, scroll half way down the page to where it says "download your free copy," and there you go. The book is over 300 pages long, so please think about reading it on your computer in order to save trees. It's available in English and Spanish. You will kick yourself if you don't get this book - did I mention that it is FREE!!! Tell your friends.

EMPOWER WOMEN, CHANGE OUR WORLD...!

2008-02-13T09:47:00.000-08:00

What can you do to improve the lives of women, if someone gives you $5,000 to start? Avon will give you that chance with their HELLO TOMORROW FUND:

What are YOU doing to change the world?

The Avon Hello Tomorrow Fund is an initiative of Avon Products, Inc. with the goal to empower women and improve society by providing individuals with cash awards that will allow them to pursue a project or initiative to better the lives of women (of all ages) in the United States.

Each week the Fund provides one $5,000 award to an individual who has submitted a compelling application that advances the interests of women and ultimately improves society. Applications will be accepted on an ongoing basis and award winners' stories will be shared with the world through avon.com and other promotions related to the Hello Tomorrow Fund.

I am going to apply. You should apply. You know you have good ideas on how to improve the world around you, think about it! Spend some time during your workout, your lunch break or your shower thinking of what you could do (instead of your thighs which is what I think about during all three of those activities), even putting that energy into the Universe is a good start. Tell your friends, apply with a friend! DO IT!

PROJECT LIFELINE, HELP FOR HOMEOWNERS IN TROUBLE...

2008-02-12T08:42:00.000-08:00

Help is on the way:

"Project Lifeline," backed by the U.S. Treasury and Department of Housing and Urban Development, would pause foreclosure proceedings for borrowers more than 90 days in arrears while services determine whether they could make payments under new terms, the lenders said in a statement.

The effort would cover all types of home loans, unlike an earlier plan aimed at freezing interest rates for subprime mortgage holders who cannot afford rates that reset to higher levels.

Watch video, and read more as the plan is announced in greater detail throughout the day.

GETTING IN SHAPE, WITH CASH...

2008-02-11T10:26:00.000-08:00

This morning I was looking through my new Shape magazine for my workout o' the week (I have a short workout attention span), I came across this blurb...

The average American woman under the age of 35 loses track of $2,709 in cash each year, according to a study conducted by Visa - meaning you spend $52 a week without realizing where it's gone.

My first thought to myself was "wow", my second was "I think I probably do that," and my third was "I wonder why the cut off is 35 year old, I bet women older than that lose even more, because maybe they have more..."? In any case, I am going to keep tabs for a couple of months on where my cash goes so I can cure my "financial amnesia." Here are the suggestions made by Janet Bodnar, author of Kiplinger's Money Smart Women for 3 easy ways to save big:

1. KEEP A RECORD - You don't have to write down your expenses forever, just do it for a month to see where you're bleeding funds. You will probably be surprised.

2. RESTRICT YOUR CASH FLOW - Start by taking a set amount out of the ATM, but tell yourself it has to last the week. You'll think harder about purchases when you have a limited supply of money. (My girlfriend Lou just told me she does that, and it helps her keep her spending down because she has to lay out cash, and eliminates the fear of her credit card bill).

3. WAIT IT OUT - If you're shopping and see something you like, leave the item at the store overnight. If you still want it the next day, go back for it. You shouldn't deprive yourself, but you should be making conscious choices.

I would just add to #3, IF you have it in your budget, and IF you can afford it. I am still obsessing over the Michael Kors "Astor Grommet" satchel ($498!!!), but I want a condo even more, so it will have to wait.

MONEY BACK! MONEY BACK! NOW THAT STIMULATIN"!

2008-02-08T10:12:00.000-08:00

I hesitate to call it "free money" since we are just getting back some of what we pay in taxes that ends up getting spent on absurd and outrageous programs and pet projects of our government...but I digress. Money back, it doesn't hurt!

The Economic Stimulus package passed last night, and come May, the checks will start rolling out:

The bill calls for individuals earning up to $75,000 and couples earning up to $150,000 to earn rebates of as much as $600 and $1,200, respectively. Taxpayers receiving the rebates additionally will receive $300 a child. Rebates are for the 2007 tax year, and the Treasury Department will begin mailing checks in May.

Seniors and disabled veterans, many of whom would have been passed over in the original agreement, will receive $300 rebate checks. The plan passed the Senate by a vote of 81 to 16.

Yipee! Other interesting news as a result of this package:

...the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), who set the upper limit for single-family mortgage loans to $300,700, a 9.34 percent increase over the previous ceiling of $275,000.

What could this mean for you if you are thinking of buying or refinancing (click here)? Yeah.

$3.6 MILLION CASH? ARE YOU KIDDING? SUZE ORMAN IS MY HERO...

2008-02-06T16:13:00.000-08:00

Oh Suze,

Here's to you and your dedication and hard work toward teaching people about the importance of saving money. $3.6 million she paid for a condo in Manhattan...in cash. What a perfect place to park that amount of money, even in a market like this. Manhattan's real estate market has not tanked like the rest of the country, instead, with the falling dollar foreign money is coming in and snatching up all the multi-million dollar condos. Here are the delicious details from The Daily Intelligencer:

This past weekend, Savings Diva Suze did not have nightmares about the credit-card bills she was going to receive after overextending herself on Christmas. This past weekend, the Observer tells us, she closed on an apartment at the Plaza. An apartment with "100-year-old mosaic tile patterns in the bathroom, walnut-bordered herringbone parquet in the living room" which she paid for in … cash. $3,610,886 and 34 cents, to be exact. There you have it. Suze Orman will outlast us all. Because only she has the Courage to be Rich.

Thanks for inspiring me to have the courage to be rich Suze! Enjoy the tile and the parquet floor!

YOU MAY NOT WANT TO WAIT TO REFINANCE THAT MORTGAGE

2008-02-04T09:36:00.000-08:00

You MAY want to read the entire article for a more thorough explanation and education of WHY... but here is the gist of it.

From THESTREET.COM - Terry Savage

Dangers of Playing the Refi Game
There are two important reasons not to "game" the mortgage rate if you know you need to refinance, or are one of the very few still buying a new home.

First: The Fed does not "control" long term rates! The Fed can pump liquidity into the system, and can set short-term rates. But it can't control the longer-term bond market, where trillions of dollars of debt are freely traded each day. In that bond market, the very sophisticated participants are considering the impact of all that liquidity -- and its potential to create inflation down the road.

The Other Risk: Home Prices Fall Farther
I mentioned that there are two reasons to lock in rates now. The second reason is that if we do have a continued economic slowdown, the appraised value of your home could fall still farther. In fact, if you don't have enough equity in your home, you simply can't refinance -- as millions of homeowners have already learned. They're stuck in adjustable rate loans, worrying about the possibility of higher monthly payments.

Take advantage of this possibly temporary dip in mortgage rates to start the refi process now. And as you start the process, get a written rate guarantee from your lender.

If rates drop again, and your house retains its value, you can always refi another time. But if rates rise, you may not get this chance again. And that's The Savage Truth!

READ MORE HERE

FED CUTS FIFTY....

2008-01-30T11:17:00.000-08:00

By Nat Worden
TheStreet.com Senior Writer
1/30/2008 2:15 PM EST

Chairman Ben Bernanke's Federal Reserve offered up another half-point rate cut to investors on Wednesday, amid signs of malaise in the U.S. economy.

ANOTHER FED CUT EXPECTED TODAY...

2008-01-30T08:34:00.000-08:00

By Martin Crutsinger, AP Economics Writer

WASHINGTON — The Federal Reserve is likely to follow its bold action last week to battle an economic downturn with further interest rate reductions, although analysts are split on just what size the future cuts will be.

FACING FORECLOSURE - SOME HELPFUL SUGGESTIONS...

2008-01-29T09:41:00.000-08:00

Do Not Ignore Mail From Your Lender
If you do not contact your lender, your lender will try to contact you by mail and phone soon after you stop making payments. It is very important that you respond to the mail and the phone calls offering help. If your lender does not hear from you they will be required to start legal action leading to foreclosure. This will substantially increase the cost of bringing your loan current.

ECONOMIC STIMULUS, WHAT DOES IT MEAN TO YOU...

2008-01-28T20:50:00.000-08:00

Congressional leaders announced a deal with the White House Thursday on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.

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Read More Here

BILL GATES RETIRES...BRAINS, WORLDWIDE ACTIVISM, MONEY and A SENSE OF HUMOR? IF ONLY HE WAS SINGLE...

2008-01-24T12:11:00.000-08:00

WE ALL FEAR BECOMING A BAG LADY...

2007-09-26T22:53:00.000-07:00

I have the fear of becoming a bag lady. I have actually said those exact words to family and friends. I remember when I said it to my dad shortly after college, he just smiled, kissed me on the forehead and promised to always take care of me (he also promised to start charging me rent should I decide to stick around the house much longer). I don't know where this fear comes from, but image my suprise when I read that apparently I am not alone. A 2006 study found that many women, including 50% of those who make over $100,000 per year, have the same fear!

The Allianz Women, Money, and Power Study

Over the past several decades, women have shattered barriers in politics, the workforce, and family roles. However, the picture is far more mixed in the financial world. Women represent half of all stock-market investors, control 48% of estates worth more than $5 million, and by 2010 women will control 60% of the wealth in the United States. In 2003, almost two million women earned over $100,000, a four-fold increase in just a decade. No longer playing the role of secondary earner, 60% of women with business degrees and 75% of executive women working for Fortune 500 companies out-earn their husbands. Yet, at the same time, poverty rates among women remain far higher than men among all age groups. Despite great strides in almost every other arena, finance and investments have remained largely a male domain.

In fact, money and investing is in many ways the last—and perhaps the most important—frontier in gender equality. In the largest-ever study of women and money, Allianz Life Insurance Company engaged Age Wave in 2006 to design a landmark research initiative, The Allianz Women, Money, and Power Study, to better understand women’s relationship with money and investing. The study included a survey of over 3,000 women and men conducted by Harris Interactive. Some key findings:

- The security and freedom money brings is 15-20 times more important to women than the status and respect it affords.

- Only 10% of women say they feel extremely financially secure, and half say they fear losing everything they have and becoming a “bag lady” living on the streets.

- Money is almost twenty times more likely than sex to be the biggest source of conflict in their marriages.

- One in five women report having a "secret stash" of savings their husbands don’t know about.

READ MORE ABOUT THIS STUDY AT:

http://www.agewave.com/research/landmark_womanMoneyPower.php

http://www.allianzlife.com/MediaCenter/PressAllianzStudy.aspx

ESTATE PLANNING ISN'T JUST FOR THE CARRINGTONS....

2007-09-20T22:49:00.000-07:00

Well, I went to the retirement seminar. I didn't really feel like the youngest, but I did feel full because they had good yogurt and muffins...for free. It was eductational and I am very glad I went. I have decided part of being a grown up is knowing who will give you money and help you plan for your retirement.

The last speaker at the seminar spoke about Estate Planning. This was all new information to me, and added another page to the list of things I need to get done ASAP. I have worked hard and have accumulated a small estate, I need a plan for it. Following is some information I found helpful.

from CNNMoney.com

Top things to know

1. No matter your net worth, it's important to have a basic estate plan in place.

Such a plan ensures that your family and financial goals are met after you die.

2. An estate plan has several elements.

They include: a will; assignment of power of attorney; and a living will or healthcare proxy (medical power of attorney). For some people, a trust may also make sense. When putting together a plan, you must be mindful of both federal and state laws governing estates.

3. Taking inventory of your assets is a good place to start.

Your assets include your investments, retirement savings, insurance policies, and real estate or business interests. Ask yourself three questions: Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you're ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself?

4. Everybody needs a will.

A will tells the world exactly where you want your assets distributed when you die. It's also the best place to name guardians for your children. Dying without a will - also known as dying "intestate" - can be costly to your heirs and leaves you no say over who gets your assets. Even if you have a trust, you still need a will to take care of any holdings outside of that trust when you die.

5. Trusts aren't just for the wealthy.

Trusts are legal mechanisms that let you put conditions on how and when your assets will be distributed upon your death. They also allow you to reduce your estate and gift taxes and to distribute assets to your heirs without the cost, delay, and publicity of probate court, which administers wills. Some also offer greater protection of your assets from creditors and lawsuits.

6. Discussing your estate plans with your heirs may prevent disputes or confusion.

Inheritance can be a loaded issue. By being clear about your intentions, you help dispel potential conflicts after you're gone.

7. The federal estate tax exemption - the amount you may leave to heirs free of federal tax - has been rising gradually and will hit $3.5 million in 2009.

Meanwhile, the top estate tax rate is coming down. The estate tax is scheduled to phase out completely by 2010, but only for a year. Unless Congress passes new laws between now and then, the tax will be reinstated in 2011 and you will only be allowed to leave your heirs $1 million tax-free at that time.

8. You may leave an unlimited amount of money to your spouse tax-free, but this isn't always the best tactic.

By leaving all your assets to your spouse, you don't use your estate tax exemption and instead increase your surviving spouse's taxable estate. That means your children are likely to pay more in estate taxes if your spouse leaves them the money when he or she dies. Plus, it defers the tough decisions about the distribution of your assets until your spouse's death.

9. There are two easy ways to give gifts tax-free and reduce your estate.

You may give up to $12,000 a year to an individual (or $24,000 if you're married and giving the gift with your spouse). You may also pay an unlimited amount of medical and education bills for someone if you pay the expenses directly to the institutions where they were incurred.

10. There are ways to give charitable gifts that keep on giving.

If you donate to a charitable gift fund or community foundation, your investment grows tax-free and you can select the charities to which contributions are given both before and after you die.

VARIABLE ANNUITIES, BUELLER....BEULLER

2007-09-12T00:32:00.000-07:00

This is too good. Tonight as I was doing my get rich homework, I went to YouTube to see what good retirement videos there might be (sometimes I get bored of reading...) Look what I found! Ben Stein. What hasn't he done in this lifetime???? Here are a few points from his Bio...

- Graduated from Columbia University in 1966 with honors in economics
- Graduated from Yale Law School in 1970 as valedictorian of his class by election of his classmates
- Helped to found the Journal of Law and Social Policy while at Yale
- Worked as a poverty lawyer in New Haven and Washington, D.C.
- Trial lawyer in the field of trade regulation at the Federal Trade Commission in Washington, D.C.
- He has written and published sixteen books, seven novels, largely about life in Los Angeles, and nine nonfiction books, about finance and about ethical and social issue in finance, and also about the political and social content of mass culture.

It goes on. He also apprently did some videos for the NRPC, National Retirement Planning Coalition. WARNING!!!! Of all of Ben's many talents, getting the message across without making his audience want to end it all RIGHT NOW, is not one. But there is interesting information here....

Interesting Eh? Now that you have learned something new (including the fate of Ben's parents), check of the video that Ben is more famous for....and also makes me feel nostalgic.

Learning is fun!!!

I learned more about VARIALBE ANNUITIES at:
http://www.sec.gov/investor/pubs/varannty.htm

I leanred more about BEN STEIN at:
http://www.benstein.com/bio.html

FREE MONEY...

2007-09-10T23:58:00.000-07:00

I am going to a Retirement Seminar on Sunday hosted by my union. I hope to be the youngest person in the room. My ego could use it, and I might be able to win the race to the best seat in the room. I am a little excited and a little nervous. I worked for many many years as a freelance film worker in Utah. Because Utah is a "right to work state," the film workers are not required to be part of a union to work on a show. This is good because....you get to work, but bad because you don't get ANY benefits. When I moved to LA I joined a union and now get all the good stuff (health insurance, pension plan, vacation pay). I am very interested to see how it works. Working freelance I took for granted the added bonuses of benefits packages! I have no idea how much I have earned in Pension funds during the last three years, if any. When planning for retirement, it's probably a good idea to understand the plan your employer has set up for you. Duh. Free money... count me in! One more step toward my year long goal.

DOING MY HOMEWORK...

2007-09-07T00:19:00.000-07:00

So tonight I spent over an hour checking out online retirement calculators. It was a little confusing but I think I got the jist of it after having filled out four or five of them. The one I liked the most was on Bloomberg.com, I have included the link to the right. This calculator was pretty simple and gives a very general idea of what your retirement could look like. Basically you want to know:

- How much you make now
- What percent you think your income will increase yearly until retirement.
- What percent of those earnings you will put into retirement
- How much you have invested for retirement (IRA's, 401 K's, Pension Plans, etc)
- What is your expected yearly return on those investments before and after retirement
- What are your anticipated expenses during retirement

The nifty thing is it gave me a cash flow report to use as a guideline as I try to reach my savings and investment goals each year. Although I feel this is a good place to start, I will do more investigating and get a few professional opinions.

I am about 25% of the way toward FEELING GREAT about my retirement plan...

TELLING THE TRUTH ABOUT WOMEN AND RETIREMENT...

2007-09-06T00:23:00.000-07:00

DON'T GET SCARED, JUST PROACTIVE! The following article is from smartmoney.com

Women and Men in Retirement: The Facts

Life expectancy at 65
Men: 17.1 years (live until 82.1) Women: 20 years (live until 85)

Population 65 and older living alone
Men: 18% Women: 38.3%

Population 85 and older living alone
Men: 29% Women: 57.4%

Median number of years spent in the work force (for workers retired in 2000)
Men: 44 Women: 32

Average Social Security monthly benefit when started at 62
Men: $1,082.94 Women: $745.35

Average Social Security monthly benefit when started at 65
Men: $1,225.73 Women: $852.49

Population 65 and older living below poverty line
Men: 7% Women: 12%

Sources: US Census (2005 American Community Survey); Social Security Administration; National Center for Health Statistics.

FIRST, THE GOOD NEWS: Today's women are just as educated as men — and they're nearly as likely to be working.

In 2005, 25.6 million women age 25 and older held bachelor's, professional or doctorate degrees, compared with 25.8 million men, according to the U.S. Census Bureau. Just over 62 million women were actively employed, alongside 73.2 million men. And in 2006, 41% of all privately-owned U.S. firms — roughly 10.4 million companies, according to the Center for Women's Business Research — were at least half-owned by women.

Behind these numbers, however, is a disturbing disparity: When it comes to retirement planning, women lag significantly behind. "Women often underestimate how much money they'll need in retirement," says Ginita Wall, a certified financial planner (CFP) and co-founder of the Women's Institute for Financial Education, or wife.org. "They either think they'll cut their expenses or they'll live off Social Security."

But the fact is, a comfortable retirement is a breathtakingly expensive endeavor. Financial planners suggest that one should shoot for an annual retirement income that's roughly 80% of your preretirement income. Translation? Everyone needs to save — a lot. But women — who tend to live five years longer than men — should actually be saving more than men.

And sadly, they aren't. In its 2006 Retirement Confidence Survey, the Employee Benefit Research Institute (EBRI) found that the majority of women (37%) believe they need under $250,000 for retirement, while the largest group of men (25%) believed they needed anywhere from $500,000 to $1 million. Additionally, nearly half of the surveyed women (43%) said they had less than $10,000 in savings, which included retirement accounts such as IRAs and 401(k)s, as compared with 37% of men.

Retirement planning strategies aren't necessarily different for women than they are for men. But it's particularly important that women take the goal of saving for retirement seriously. Here are three rules to live by.

Start Early
Women still earn less than men. In 2005 a female full-time worker earned 77 cents for each dollar earned by a man, according to the Women's Institute for a Secure Retirement, or Wiser. That amounts to $445,000 less in earned income over a woman's lifetime.

How to fight back? Start young. Consider this: If you start saving $5,000 a year when you're 25 years old, by the time you turn 65 you will have a comfy $1.3 million to live off. But if you start 20 years later, at age 45, you will have less than $230,000. (That's assuming an 8% annual return. For a more detailed account, crunch your numbers in our 401(k) Planner.)

Create Your Own Benefits Plan
Women are more likely than men to cut back on their hours of employment to meet family needs. A quarter of working women worked part-time in 2006, compared with about 11% of working men, according to the U.S. Bureau of Labor Statistics.

"Women typically take time out of their careers to raise a family, and they often take lesser-paying jobs in order to have more flexible hours," says Wife.org's Wall. "So a doctor may, rather than have a private practice, end up working in a clinic so she can pick up her kids at 5:30 every night."

Women are also more likely to work for themselves. Female-run businesses are popping up at nearly twice the rate of those helmed by men or a man and a woman together, according to the Center for Women's Business Research.

The net result is that women are less likely to have an employer-sponsored retirement plan, such as a 401(k). In that case, a traditional IRA can provide an upfront tax benefit — you can make an up to $4,000 tax-deductible contribution for tax years 2006 and 2007 ($5,000 for those 50 or older), while a Roth IRA allows you to withdraw retirement funds tax-free (but contributions are made with after-tax dollars).

Small-business owners, in the meantime, should consider opening a SEP IRA, which allows you to contribute up to 20% of self-employment income, up to $45,000 a year. For more retirement options for small businesses, read our story.

And what about stay-at-home moms? Women who don't work outside the home can set up a Spousal IRA.

Stay on Top of the Family Finances
Many women still let their husbands handle the family finances. Should that marriage end in divorce — or should the wife become widowed, that can be a disaster. "At Wife.org we have a saying, 'A man is not a financial plan'," says Wall.

It's an all-too-common situation that leaves many widows and divorcees on the path to bankruptcy: a problem that Muriel Siebert, founder of the Women's Financial Network at Siebert and the first woman to own a seat on the New York Stock Exchange, would like to see change. "You've got women today that are going to be left a big responsibility and they don't know the numbers," she says. "It's not that they're stupid, it's that they've never had to do these things."

To protect yourself, make sure you're involved with investment decisions, stay on top of your debt obligations and make sure you have enough insurance coverage. For advice on how to protect yourself in the event of a divorce, read our story.

What if your husband doesn't like to talk about these things? "Ask the questions and if it doesn't get answered the first time, find another way to ask it," says Stephanie Sherman, a financial planner with Prudential Financial. "Too often women say, 'Oh, my husband said it'll be fine.' That's not always the case."

ONE THING, FEEL GREAT...

2007-09-04T21:51:00.000-07:00

This was more difficult than I thought. What is the ONE THING that has to happen for me to FEEL I’ve made GREAT financial progress. One thing, feel great….One thing, feel great… It comes to me that it would feel GREAT to know what my ultimate financial goal is. By this I mean a RETIREMENT PLAN, a SECURITY PLAN. In my list of 10 things that bring me the most joy, I can imagine that each one would be just that much sweeter knowing that I will be able to enjoy them now, AND later. I admit I am a little nervous to face the truth; (there’s that phrase again “all financial progress begins by telling the truth”) because I...... have been procrastinating. I have many of what I feel are legitimate excuses (working 12+ hours a day for 19 years, not knowing the best way to go about it, fill in your excuse here, I am sure I have used it…). But the fact still remains that the 100 page term paper is due next week, and I just wrote the first paragraph. Not to worry; as this has been a consistent theme in my life, I am good at cramming.

I am going to start with the RETIREMENT PLANNING page on SUZE ORMAN’S website (see the link to the right under “websites to check out”). She’s a girl who got rich, and her hair looks just like my moms, I think I can trust her to tell me exactly how to get it done.

IT ALL STARTS IN MY BRAIN…?

2007-08-31T22:44:00.000-07:00

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.

2007-08-31T16:02:00.001-07:00

Something is wrong with the Polling feature. Click on "comment" just below this entry and vote there until blogspot gets it fixed. : )

TRUTH, CONFESSIONS and PLEA BARGAINING…

2007-08-30T23:42:00.000-07:00

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.....

2007-08-29T22:43:00.000-07:00

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...

2007-08-29T00:29:00.000-07:00

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?

2007-08-27T23:28:00.000-07:00

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...

2007-08-26T22:17:00.000-07:00

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...

2007-08-24T20:54:00.000-07:00

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...

2007-08-23T19:17:00.000-07:00

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...

2007-08-22T20:40:00.001-07:00

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.