Financial confusion holds women back

As a Personal coach I quickly realised that money was a recurring obstacle standing between women and their goals. Whether someone wanted to retrain for a new career, start a business, meet someone new, or de-stress their lives, money always figured in the equation.

A combination of taking time off to have a family, spiralling lifestyle costs, a higher cost of working (think clothes and grooming), lower earnings, working in lower income industries and most importantly having lower earning expectation and lower financial confidence have all contributed to financial circumstances that do not support our dreams and desires.

Having been at the receiving end of these latent (and blatant) circumstances and prejudices myself at one time or another, I was determined to do something about it. Working with my Chartered Accountant/Coach husband, I developed a programme specifically designed to bridge the gap between the financial confidence that men exude (including some notable women) and the financial confusion that holds women back.

Turns out the gap is like one of those mirrors in the fairground; the one that makes tiny things look huge. It only looks large until you turn round and face it. Bridging the gap can be so easy. It can be fast, effective and even fun!

Money problems – a private shame

Recently the national papers have been bringing lots of financial bogeymen to light…spiralling consumer debt, the collapse of pension funds and under performing endowment plans, an ageing population, increased taxes and a failing national health system needing to be propped up by private medical care to mention a few. It might all sound scary but I for one am pleased that these subjects are being brought to public attention. We talk about the detail of our sex lives more readily than we discuss our money problems.

This private shame is keeping so many people locked in ever worsening financial circumstances, keeping up appearances while fear eats away at their future. Women across the UK are struggling in silence to keep up appearances.

It’s an unhealthy combination; a financial system of increasing complexity and an uninformed individual scared to say they are out of their depth. Here’s the best kept secret of all time.

Women are better with money than men.

Not my opinion but that of Charles Mellon, multi-millionaire investor, author and lecturer on stock market trading. We owe it to ourselves (and our daughters) to learn to use our innate financial skills.

Meanwhile read my top 5 tips for money management and start putting them into practice today!

Top Tips for Money Management

1.The Fab Four

There are four pieces of financial information that you must know as intimately as you know your bra size.

• Your exact monthly income
• Your exact monthly expenditure
• The exact amount of your debt
• Exactly how much money you have left over at the end of the month (or not)

These four numbers impact your future financial decision making more than any other piece of information or education you could ever have. If you do nothing else, find out these numbers. Once you know them they will guide you in the right direction.

2.Talk, Talk, Talk.

It’s supposed to be what we do best so lets put it to the best use. Let’s get this stuff out in the open.

One client explained to me that any subject was acceptable at her parents table while growing up, from sex, to politics to religion to you name it. Except money. Money was not considered polite conversation and certainly not in front of others. You will be astonished to find out how many people who appear financially stable are experiencing financial problems. From where to find the cheapest toilet paper to how to get out of debt, your answers could well be in your own circle of family and friends.

3.Read, Listen and Learn

Whatever your buzz; books, tapes, CDs courses or seminars, begin your own financial education.

Read the financial section of the paper. It might start out being dull and maybe even double Dutch to you. But you’ll become familiar with the language and it will provoke questions you will want answers to for your own financial life. There are many many sources of information available. Make a decision to learn about you and money.

4.Christmas is coming and the credit card companies are getting fat.

As a nation we run up an astonishing percentage of our annual debt in the holiday period. This holiday season do your family and friends a favour. Be the one that suggests that you are all reasonable with your gift expectations. Calculate how much you can spend without using credit and stick to it.

Trust me, a Christmas bought and paid for in cash is a much different one than one provided by increasing debt. Try it and then tell me how it was for you.

5.Take one big giant step backwards

Go on! Stand up and step back now. Did I mention that Christmas is coming up? Let me mention it again. Christmas is coming. Prepare to be bombarded with “Pressure to Purchase”. Everyone and everything from the neighbour with the Santa circus in the garden, to the media and advertising, to little Johnny begging for the latest gadget, to that cute bearded old man in red at the shopping center is going to tell you what you need to buy.

Every time you see one of them coming, every time you reach for your purse I want you to take a big giant step backwards away from them and ask yourself if it is you or them that is making the decision.