Your Money Matters – Lesson 2: Investments?
Question comes from “Nice Girls Don’t Get Rich, 75 Avoidable Mistakes Women Make with Money”, Lois P. Frankel, PhD. Assessment Question #2.
Q: In the past year I have attended at least one seminar or workshop related to financial planning or investing.
I was set to go to one and then Corona happened. I was so let down because it was going to be this huge event with all of these top women in the investment markets coming together in Stockholm and speaking to other women about the importance of saving and investing money for herself.
HELLO! Only exactly what I believe in, stand for and LOVE to learn more about. Pity it was cancelled.
Since that time I have reached out to women in my network that are doing smart things with their own investments. Talking to people that invest in the markets themselves and see what they are doing and how they got started. I have also started taking a more active role asking my Swedish husband questions about the Swedish stock market and what we invest in versus letting him take care of everything. I do not like not knowing what is happening with our money. I want to know where it is invested and I want to know if it makes sense for me and our life and do I believe in the companies we are investing in?? What do they stand for? Do they share my/our values?
Are you investing in anything like stocks? Bonds? Real estate? Art work? Jewelry? Pets? Classic cars? There are so many things to invest in!
I can share a story with you here how I started saving money when I was a young person.
In my early 20’s I was living in a home on The Ohio State University campus that my parents had purchased for me and my other 2 siblings who were in the same school at the same time. One day my father contacted me and said it was time to sell the house, they needed the money for something else. No problem, I thought. I was young, had my first career, was saving money and living pretty inexpensively so I figured I would get an apartment somewhere and start my “real” adult life. (Side note, my 2 siblings had already moved out by that time and I lived in the house with my then boyfriend).
My boyfriend thought it was a good idea that I should BUY the house from my parents. WHAT?! Why in the heck would I buy a house? I was 23 years old! What did I know about owning my own home (meanwhile I had been living in the home already for 5 years by that time. I can’t say I was the smartest tool in the shed).
Anywho, it ended up that I did buy the home, on my salary of 13,000 USD a year from my job at the bank. My parents ended up selling me the house at a 10,000 USD discount since we didn’t need to use a realtor and we hired an attorney to draw up the deed transfer paperwork. Easy peasy.
Back in those days the bank interest rates to borrow for my mortgage was 8.25%!!! Can you even imagine those rates today? HA!
The reason I tell you this story is because BUYING that home was the best thing I ever could have done for myself because when it came time to SELL that home, I sold it for 30,000 USD more than what I paid for it! I had also been paying down the principal on it so I had over 50,000 USD to roll into my next home! That then became my savings account (which I still use to this day). And yes, I have thanked my ex boyfriend for his sage advice back then! We are still friends to this day.
If you take care of your home, your home should hopefully take care of you. Markets change, yes, that is true, but if you own a home and its a bad time to sell then hold on to it if you can. Rent it out or wait till the markets readjust so that you can get a better return on your investment. The biggest investment you can make is typically a home and it will also typically be the largest return on your money as well.
It has proven to be so for me. **Homeownership is not for everyone, I understand that too. This is only my story.**
If you do not own your own home, or you feel like you could ‘never’ have a savings account because you “are so bad with money” (hear this a lot from women), know this. It is NEVER TOO LATE TO START SAVING YOUR OWN MONEY! If you have never saved money, or you don’t know HOW to save money, reach out to me and we can go over where it is you are blocking yourself because there IS a way if you want to find a way.
Avoidable mistakes… choosing not to learn more about money, how money can work for you, how you can use it to your benefit, how you can make it grow so you have money for a rainy day (goal: 8 months of living expenses saved in case of emergency).
When was the last time you attended a financial planning seminar or investment seminar? I challenge you to find one in your area or ASK someone that’s a financial specialist to come up with one in your area! Why not?! Invite all of your other business lady friends and any other woman you know because SISTER!! Together we rise!!