Archive for February, 2009
Finance, and therefore money, often gets a bad rap. Women who like money and want more of it are too often considered ambitious, greedy or gold diggers. However, having money can be a truly enjoyable – even life changing – experience. At its best, money is about freedom and choices, about having options and opportunities. It’s about being able to live the life you want to live in the way you want to live it. Money allows you to travel, to go to school, or to work at something that offers you full satisfaction, regardless of compensation, instead of being stuck in a job you hate just to pay the bills. Money gives you the freedom to choose whether to buy that Prada bag or the Gucci boots or, in a perfect world, both. Money allows you to be self-sufficient; with the confidence that comes with being independent and the freedom to make life choices that are right for you. It doesn’t guarantee all this, but it certainly ups the odds. It’s a means to an end we all aspire to.
So knowing how to manage your money is vital. There are a lot of decisions to make (student loans, buying a car, buying a house, how many pairs of shoes you can own without being obscene) which will rely on your having a basic understanding of your personal finances. Money can be cheap or expensive, depending on what you know about how to use it. For example, if you charge those Manolo Blahnik shoes – the ones you know perfectly well you can’t afford – to your credit card and don’t pay the bill in full when it arrives in the mail, the shoes become a lot more expensive than the original number that was on the price tag because of the interest the credit company charges.
I know many of you think finance is boring and that you are not good at math. But understanding the basic connects of money management is crucial – just look at the mess the economy is in. So please make an effort – I promise it will be worth it. (Especially when you are able to afford whatever it is you want without having to stress about when the credit bill is coming).
February 23rd, 2009
In this recession, even wedding vows are suffering: http://www.thebigmoney.com/articles/hey-big-gender/2009/02/12/forget-dow-check-vows. Marrying well is never a sound financial plan – they can always leave. What you need are skills and a budget. That way, you will always be able to care of yourself.
February 16th, 2009
She couldn’t believe the attention he was giving her. She hadn’t felt this kind of intensity in years. His focus was unwavering. And, he was cute too. If only he wasn’t with the IRS. Why oh why hadn’t she gotten help with her taxes?
Chances were that this audit was going to be a lot more expensive than if she had received help – and not waited until the last minute to fill out all her tax forms. She considered the options she had ignored: computer programs like Turbo Tax, tax preparation companies like H&R block, a bookkeeper or CPA. Each carried a different cost but, in the long run, probably would have saved her money.
She vowed next year would be different.
February 12th, 2009
The devil put down his fiddle with glee – finance guys were going down. Musicians were back on the upswing and everyone knew women loved rock stars. Orchestrating the economic decline had been surprisingly easy. The inevitable finger pointing had begun in earnest. Experts were blaming consumers, liberals were blaming conservatives, conservatives were blaming liberals, and everyone was blaming bankers. Under immense financial stress and pressure, bankers weren’t treating their girlfriends’ right. Now they were out looking. Even the New York Times had weighed in: “It’s the Economy Girlfriend” (http://www.nytimes.com/2009/01/28/nyregion/28daba.html?em). His bet was that musicians were next in line. Who else could afford bottle/table service? Then he frowned, the last time he had made a bet he had lost his favorite golden fiddle – and he wanted to keep his hedge against the dollar falling.
February 11th, 2009
Sung to Katy Perry’s I Kissed A Girl…
This was never the way I planned
Not my intention
I was so dumb, shoes in hand
Lost my discretion
It’s not what, I usually do
Just wanted to try them on
They were way too expensive
Caught my attention
I bounced a check and I hated it
Got calls from the bank
I bounced a check and I hated it
I hope my credit score isn’t wrecked
It felt so wrong
It felt so bad
It means I’m in debt tonight
I bounced a check and I hated it
I hated it
February 6th, 2009
Kitty tried to slam down the phone receiver. Damm her lack of opposable thumbs and damm Barbie. They had been vying for sexiest toy title for years. Kitty thought she had Barbie beat when she went for the big time bling. But now the diva was topping her with a runway show on Feb. 14 in Bryant Park, complete with designer inspired Barbie clothes. What was the world coming to? Then Kitty sat back and purred – she still had her line at Neiman Marcus and a higher net worth (see November 17, 2008 post for more on net worth). And, wasn’t Barbie turning 50?
http://www.nytimes.com/2009/02/05/fashion/05ROW.html?_r=1&ref=todayspaper
http://www.neimanmarcus.com/search.jhtml?N=0&Ntt=heloo+kitty&_requestid=15797″
February 5th, 2009
Blake sighed. She couldn’t understand why Justin kept calling. They had broken up weeks ago but he insisted on trying to work things out and desperately wanted to reconcile. Reconcile? She couldn’t even reconcile her checking account, let alone her relationship. Besides, she had started seeing a darling investment banker – although she had to acknowledge he was awfully uptight, what with the economy and all – which was getting on her nerves.
She decided to start with her checking account. If she could reconcile her money, Justin would be easy. Don’t know how to reconcile your checking account? Leave me a comment and I will send you easy to follow instructions.
February 5th, 2009
You’ve been really good. The statement chandelier earrings you were lusting after will have to sparkle on someone else. You’ve curtailed your spending and finally have some extra money this month. What should you do with it? Are you better off paying down some of your debt or tucking it away in your savings account? For overall finance purposes, paying off debt and saving are the same. Incurring debt is negative savings; paying down debt is savings; and savings are savings. That being said, the single best thing you can do for your finances is to pay down your credit card debt (see Barbie: January 23, 2008; Interest: January 15, 2008 and Gift Yourself: December 1, 2007).
Once your credit debt is gone, make sure you have some savings. You should have a minimum of three months living expenses saved up. This may take awhile, but it is really crucial. You want to be able to take care of yourself if you hit any bumps. Promise yourself you won’t touch that money unless there is an emergency.
Then turn your attention to your other debts – high interest, non-tax beneficial ones first. Just like there are good trends and bad trends, there is such a thing as good debt and bad debt. Not all debts are created equal.
For example, a college or graduate school education and a home are sometimes considered good debt because although you had to borrow money to pay for them, you have something of value after you have paid back what you owe, interest and all. You also get to deduct a portion of these debts from your taxes. Credit cards and car loans are often considered bad debt. The value of what you purchased tends to decrease after you borrowed the money to pay for them. Worse, you cannot deduct any portion of these debts from your taxes.
So pay off your bad debts first – as an added benefit, once you have paid them off your monthly income will increase. Earrings, here you come!
February 3rd, 2009
Starlets and their cell phones. Inseparable. Gossip? New movie deal? No, smart money management. Two new cell phone applications help you shop:
Lucky Magazine has created Lucky At Your Service which ties into stores’ inventories. The app featured over 70 shoes in its March shoe guide. Click “find it near you” and either GPS or a zip code can tell you which stores have what you’re looking for. The best part, it’s free. Download it at: http://corp.nearbynow.com/luckyatyourservice
ShopSavvy (www.biggu.com/applications) also acts as a personal shopping assistant. You scan an items barcode with your phone’s camera and the app shows you the lowest prices online and at nearby stores.
Even starlets need to save.
February 2nd, 2009