by Elisabeth Donati | Jun 16, 2011 | Financial Literacy, Uncategorized
It’s summer and your kids are out of school, foot loose and fancy free. If you have teens, they are probably busy spending money hand over fist (whatever that means) and hopefully, many of them are making some or all of the money they are spending. If they aren’t, and YOU are supplying the money they are spending…STOP!!!
Yes, you read that correctly. Stop giving them money to spend frivolously! Kids don’t learn how to create their own money when you’re always giving it to them to spend. I’m not referring to their regular allowance money, however, that you provide for them to buy the things you’ve made them responsible for buying at their age, which is the secret to The Ultimate Allowance.
One of the main points in my Ultimate Allowance Book is that it’s always far easier for kids to spend YOUR money than THEIR money so it’s imperative that you put them in charge of purchasing the things they need as early as possible.
Summer Fun
Since I explain exactly how to do this in my book, I move on to talk about what a perfect opportunity the summer provides for instilling a sense of financial responsibility and entrepreneurship in your kids.
Necessity is the Mother of Invention
We’ve all heard this saying, Necessity is the Mother of Invention. Well, if kids aren’t getting extra money for movies, day trips, smoothies, etc. from YOU, they are going to have to create it themselves, or borrow it from others (and if you see this happening, stop it immediately).
The challenge for you is this: if you’re working full time and your kids don’t have the guidance they need to create their own money and manage it well, well, it’s probably not going to happen.
Now there are always a handful of kids who, for whatever reason, get the business bug all by themselves. They see their parents making their own money and have been exposed to it since they were babies or they see a buddy making money on his own or something else spurs them into starting a little business.
Generally, however, they need coaching and guidance to reach this point. One great solution, if you can’t do it yourself, is to find a mentor for your son or daughter. If you can’t be the inspiration and coach, perhaps you have a friend, relative or neighbor who runs his own business who can. If your child is a hard worker, pays attention and is truly interested, business owners are often happy to take on a young intern to show him the ropes.
Kids, Summers and Saving Money
No doubt about it…summers take money. We all know that. Vacations, special events, time with friends, new movies (thanks to Hollywood), new video games, etc. The marketing firms of the world spend months in conference rooms around the globe figuring out how to get money out of your teen’s pocket in the summer.
The questions are:
1) Where is this money coming from?
2) Who’s in charge of managing it?
In terms of where the money is coming from, it’s important to remember what I said earlier, that it’s WAY easier for your kids to spend YOUR money than THEIRS. You know, without a shadow of a doubt, what your kids REALLY want when they are willing to use their own money.
The key is to help them start producing their own money as early as possible. And generally, you do this by encouraging them to start a little business providing a service or selling a product or getting a job (which is the last option since we’re trying to create kids who are independent, not dependent, for the rest of their lives).
The best way to encourage their little entrepreneurial spirits, is to start chatting with them every chance you get about what people are buying and what people are spending their money on…explore various services and products they could promote that would make them money.
Note: it’s not your job to judge what is a good idea or not, so do your best not to say, “That’s a stupid idea…it will never work.” Treat every idea as valid and then help and encourage your child to learn what a good business idea looks like. And remember, if you don’t know, get some help from a friend or neighbor.
In terms of who’s in charge of managing it? Well, that all depends on how old your child is and how what kind of relationship you have with him or her. I’ve always frowned on TELLING a child what he has to do with his money. It’s really critical that, when it comes to learning about money, you develop a trusting, open, inquisitive type relationship with your kids where they can explore the wonderful world of money, learn how to manage it well, begin exploring the how to invest it in assets (beginning with a simple savings account and moving into individual stocks, starting businesses, and maybe even eventually real estate when they’re a little older).
Let’s Talk About Money!
So DO you establish the kind of relationship with your kids where money is an open book? It’s simple. Just start talking to your kids about money with as little of your adult judgments and beliefs thrown in. And you’ll know when you’ve crossed the line when you start to get upset about something. Just back off, take a breath and continue talking without the judgment or belief controlling the conversation.
Don’t TELL your child; ask questions. Don’t lecture; tell stories and get their feedback. Don’t just SHOW your child what to do; let him EXPERIENCE what to do himself.
Set Some Summer Goals
Summer is like any other time in regard to making and managing money. Take time right now to start the conversation. Sit down, play Monopoly. Order and play The Money Game if you can get 6-10 kids (siblings, neighbors, cousins, etc.) together and you have the gumption to learn how to teach it (it’s instructor driven, not a board game) and let them learn experientially.
Let part of the conversation be about setting financial goals. Any type of goal is fine…just set some. Saving goals, purchasing goals, money for vacation spending goals, saving toward a new bike (or first car). Anything that gets them focused on NOT spending their hard earned money.
Avoiding Financial Sunburns
At the end of the summer, you and your children have either spent more than you made, come out even or made more than you spent. If you don’t aim for the latter, you’ll end up with one of the first two. So…just keep an eye on the goal and have a great time learning how to get there, together.
by Elisabeth Donati | Jun 13, 2011 | Media Attention, Uncategorized
We often suggest to our inquiring parents that they pay their kids to read some of those great financial books out there. (Yes, pay!) Pay your kids $25 to read Rich Dad, Poor Dad; paying AFTER they give you a book report on each chapter and have a meaningful conversation with you about what they read and how they can apply the information to their own life. Also, begin to instill in your kids the Pay Yourself First habit by requiring that at least 10% of that $25 is put away for their future. This technique is just one more way to get that all-important financial education into their systems (and may be one of the best investments in your kids you ever make!).
One of our parents recently wrote to me, wondering whether or not her child would retain the information. My response:
“Think back to your own education and the books that made a difference. What information gave you the building blocks for what you know today? What inspired your curiosity to know more? What information did you get early on that had you feel less “stupid” in conversations that you may have otherwise stopped participating in?
This is what we are going for when we suggest that you get your kids reading about money. It is unlikely they will “get it” right away but we want you to give them a knowledge base upon which to grow and learn and “get it” as they go. And the earlier, the better – less chance they will develop their money habits by default or out of ignorance!
Just try it and see how it goes!”
by Elisabeth Donati | Jun 8, 2011 | Financial Literacy, Uncategorized
You know that saying many speakers use when they’re telling you about their success?
That phrase you’ve heard plenty of times but not realized what they are doing in psychological terms…aka Speaker Speak?
It’s the phrase, “But it wasn’t always this way.”
They use this phrase because they want you to know that YOU TOO can become ___________ (happy, wealthy, fit, successful), whatever it is that they are preaching and teaching. And we love that they figured it out because it gives us hope that WE can and will figure it out, too.
Well, I’m 53 and for the first time in my life, I’m not healthy.
Medicine Takes Money
BUT IT WASN’T ALWAYS THIS WAY!
But wait, isn’t it supposed to be the other way around? Aren’t I suppose to tell you how great I am now and how terrible I was at something before? Well, we’re going to go about things a little bass-ackwards today (one of mom’s favorite sayings again – thanks mom).
People generally don’t plan to be sick later in life
When we’re young and full of energy, we tend to think we are invincible, have the cat by its tail and nothing will ever bring us down. OTHER people get sick. OTHER people have accidents. OTHER people get cancer (don’t worry, I’m not THAT sick).
Not so. Some times those other people turn out to be YOU, even if you do everything you know to make sure you stay healthy.
The challenge, financially, is that if we aren’t planning for unexpected medical bills and challenges, we’re in a hurt of trouble well past being in the hurt we’re experiencing physically.
My personal journey as case in point
All my life, I have eaten not just well, but extremely well. I grew up on a farm and lived on home grown veggies, butter (yes, butter is good for you), fresh fruit, home-made breads, etc. Back then, the meats we ate didn’t have the hormones and other chemicals in them so we rarely got sick other than an occasional cold (and I seem to remember a few ear aches).
Then, when I was a teenager, I was a vegetarian for quite a while and nothing white (white flour, white sugar) crossed my lips. I ate tons of veggies, whole grains, beans, rice and even though I probably needed some good old fashioned meat, I still rarely got sick. I was strong, healthy and had more energy than anyone I knew.
When I went off to college, I ended up studying fitness and nutrition which ended up being my first love (probably still is) for decades. The only thing I didn’t do correctly was eat enough fat because back when I was learning all this nutrition stuff, fat was our enemy. Not so anymore…we now know how important good fats are and the truth is, sugar is our big enemy.
The point I want to make here is that I did everything I thought I could do to stay healthy so I could live into my older years with plenty of energy and the strength to do whatever it is I wanted with my life.
The best laid plans
A few years ago, I started going into that menopause thing that all of us older women go through, whether we want to or not. Without going into all of the details, I ended up using a very toxic hormone protocol (and yes, you can email me for the information) that has made me very sick.
What I’m doing now is spending a ton of money on experts to help me get well. My belief is that the body can heal itself if you provide it with the right tools and I have to say, those tools are costing me a fortune. Expert endocrinologist, vitamins, hormones (to fix the other hormone situation), herbalist, herbs, massage, hyperberic oxygen treatments and a whole lot more.
Never in my life did I imagine that 1) I would be so sick and 2) I’d need this much money to pay for this medical journey I’m on. The blessing is that I do have money put away to pay for these expenses and every day that I have to outlay more money for something else, I say a prayer that I don’t have to put these expenses on a credit card or worse, I don’t have any way of paying for the medical bills.
The study about women, money and early death
I read recently that women without money die sooner than women with money. The reason for this is simple…women with money use that money to pay for quality health care.
So here’s your action questions:
1) Do you have money put away earmarked for Medical Expenses? If yes, great. If no, START TODAY! And I seriously suggest you put it in a separate account named Medical Expense. If you’re doing The Money Jars, simply add one more jar to your Magically Money Management System.
2) Are you a women anywhere near menopause? If yes, please know this…menopause is a phase of life that you don’t go through, you go into and stay there.
It is the permanent loss of our sex hormone system and since all hormone systems depend on each other, it’s critical that you learn as early as possible, how to balance (not just replace) those hormones.
I am learning heaps about the endocrine system and how it affects all of the other systems and it’s as fascinating as financial education for kids. For those of you who are interested, I’m happy to share what I’m going through on a different blog:-).
3) Since #1 is so important, I’m simply going to implore you to plan ahead so that you have the money you may need to pay for your own health restoration. I promise you, from the bottom of where I can make promises, you will be super glad you did.
Here’s to your best health!
Miss E
by Elisabeth Donati | May 26, 2011 | Media Attention, Uncategorized
Too much stuff
Why does it seem that the older I get, the more simple I want my life?
And why has it taken me years to figure that out?
I think the answer lies in the fact that I’ve been teaching financial education for so many years, and had the privilege to talk to so many adults about their financial situations, that I see one of the most common problems over and over again.
And that problem is that most of us just have too much stuff. We have too many clothes, too many gadgets, too much we think we have to do, too many commitments, too many shoes, too many pets, too many accounts, too many pieces of real estate, etc. and ad nauseum.
We want, want, want without enough forethought about what it costs to maintain those wants once they have become ‘gottens’.
What is just enough?
In my world, ‘just enough’ has an energy about a place that invites me to relax and calm down. Cayucos, where I was last week, is one of those places. I stay in my dear friend, Laura’s, condo that is right on the ocean. There is just enough in that place.
There’s a king size bed upstairs, one chest of drawers, and one closet. More than enough space for a week’s worth or even a month’s worth of clothing. (Secret: I always take too much clothing…I spend the week in yoga pants and flannel shirts and occasionally put on a pair of shorts if it gets warm enough:)
There’s another bedroom downstairs if I want to have someone join me (which I rarely do since I’m very selfish with my alone time…hence the phrase alone time).
There’s a small couch, just enough for two (OK, so sometimes my boyfriend, Steve, is invited for a couple of days), two sweet little chairs, a TV which I never find anything worth watching on and a dining room table with 4 chairs. WAY more than enough choices to sit.
There’s a small kitchen that has everything you ‘need’ to cook. I do take a good knife and my popcorn pot but the rest of it is perfectly just enough.
And the point is…’just enough’ gives me this incredible space to relax in a way that I don’t seem to be able to at home, yet.
Why? Because I work from home, the office is my dining room and there’s work stuff everywhere. Oh, and truth be told, as much as I love my home two blocks from the beach here in Santa Barbara (I know, pitiful, isn’t it!), I pay for it by renting out two rooms. I could easily live in a sweet one bedroom on the beach and have an office somewhere outside of the house.
How do you know when you have just enough?
You know you have just enough when you walk into a space and you’re not overwhelmed with what you have to clean or how much stuff is laying around.
You know you have just enough when you walk into that space and are greeted with a sense of peace and relaxation.
You know you have just enough when the idea of getting one more thing causes any sort of unrest in your being.
Just enough and financial freedom
The point is that we could all be financially free a whole lot sooner if we didn’t surround ourselves with so much stuff. The money it takes to buy all that stuff could be used to invest in assets that then produce more money for you, rather than you constantly working for it.
So all I want you to do this weekend is to look around your world and notice where you are well past just enough: relationships, furniture, books, yarn, shoes, kitchen utensils, foods, clothes, makeup.
Too much stuff!
And then start asking yourself what you could get rid of to give yourself some space. Donate it, have a yard sale, put things on Amazon or Craigslist. And don’t be attached to it…just get rid of it!
And finally, make a commitment to not replace the stuff you get rid of. A great way to do that is to have a jar or envelope and every time you feel like buying something new, don’t. Put that money in your “Just Enough” jar and when that jar gets full (and it will), put that money in your IRA or your savings account or your stock account and put it to work for you instead.
I think I’ve said just enough.
by Elisabeth Donati | May 19, 2011 | Financial Literacy, Latest News, Uncategorized
By John Buerger, Guest
Note from Elisabeth: John is on the board of directors of Creative Wealth International and love The Money Game. Here’s a great article he wrote on playing The Money Game to win.
Winning YOUR Money Game
Right now, you are playing in the biggest, most important game of your life. How are you doing?That game is “The Money Game” and you’re in it because you are making financial choices each and every day. You can’t opt out of this game. You can’t sit on the bench or go back into the locker room. You’re out there on the Money Game field, playing with millions of other players (someone had to tell you).Since you’re in this game and you can’t opt out, it would seem like a good idea to know how to play the Money Game…and win.
THREE ELEMENTS
The Money Game (like all games) has three basic elements. The first one is Offense. In the Money Game, the offense includes income, savings and investment choices. When you do well on offense, you score points and improve your position. That’s how it works in the Money Game, too.
Then there’s the Defense – protecting what you already have. In the Money Game that can involve insurance, cash reserves or legal protections like an estate plan.
The third part of any game worth playing is Celebration. When you score a goal, you celebrate. When you hit a good shot, celebrate. When your defense makes a great stop, celebrate. In the Money Game, Celebration is using your money to pay for something…something that is (hopefully) enjoyable and worth celebrating.
BALANCE
One key to winning the money game is to have balance between all three aspects of the game. If your team has a great offense but no defense, you’ll be doomed to lose no matter how many times you score. If you’re out there on the field celebrating all the time but not paying attention to your offense or your defense – well, that won’t end up very well for you, either.
FOCUS
Once you have accepted that (a) you are in this Money Game and (b) you can’t opt out, it becomes obvious that some effort towards doing your best at each aspect of the game (offense, defense and celebration) is worth the time and energy you might spend on it.Not working to improve your skills in the Money Game would be like going out on the football field of an NFL game with little to no experience. You might have all the protective gear in the world, but you’ll still get beat up (example: watch the movie “Rudy”).
REASONS TO CELEBRATE
Remember that at least one aspect of the Money Game is a heck of a lot of fun. That element is “Celebration.” When you have a better offense, you score more points so you can celebrate more. When you have a great defense, your successes on offense will be more effective and long-lasting which will give you more to celebrate with as well.So use Celebration as the motive to keep working on improving your offense and defense.
YOUR CHOICE
Remember, whether you like it or not, you ARE a player in the Money Game. Unfortunately (for them), the attitude for many of your neighbors is to never try to improve. It’s too difficult/confusing/boring. They would rather focus on something else so they go out on the field – suited up but otherwise unprepared – and let life “hit them in the face” (like Rudy). They don’t work to improve their cash flow, income, savings or investments, nor do they pay attention to how well they are protected out there on the field. They just go out and hope they don’t get hit … and then wonder why they don’t have a lot to celebrate about later.
AGE SHIFTS
There is one other thing to keep in mind. When we are younger, we have more capacity for growth (offense). While celebration is fun and an important part of the game at any time, it is also important to save some of your energy for later in the game. As you get older, your capacity for growth gets smaller … but your total score (resources) gets larger (as long as your defense has done their job).The celebrations at the end of the game are often sweeter than those in the first few minutes.
About John Buerger
John Buerger is a Certified Financial Planner™ professional licensed with ALTUS Wealth Solutions, a registered investment advisor that provides personal financial advice online or in person for a fee. John is a Wealth Coach and online advice pioneer who help you make better money choices with your money. As a coach he’s give you the tools, strategy and framework you need to Get, Keep and Enjoy more of whatever is most important to you in life. AND he has a great newsletter of his own so if you enjoy Financial Wisdom with a TWI$T, go sign up for his information, too. You’ll love it!
by Elisabeth Donati | May 17, 2011 | Media Attention, Uncategorized
Veteran Recruiter & Career Coach, Judi Perkins, Reveals Secrets to Landing Perfect Job!
Standing out in the job market is more difficult today than it’s ever been before!
For one thing, recent downsizing has led to more candidates for fewer jobs. On top of that, the 24/7 convenience of the Internet has made applying for positions almost too easy.
Now all a candidate has to do is type in some basic information, attach his or her resume and they can apply for a position in a mere matter of minutes … maybe even seconds once they’ve been at it a while.
Because applying for positions has gotten so easy, companies are being completely inundated with resumes from job-seekers who basically apply for any and every position that they are even remotely interested in.
It’s now gotten to the point where many companies don’t know how to effectively manage the candidate flow.
That’s where a recruiter can help you.
A good recruiter can make sure you get noticed for the right position.
“Demystifying Headhunters – How to Partner with Recruiters: Everything You Need to Know” is written in a clear, no-fluff style filled with actionable advice for professionals who want to actively manage their job searches and careers.
—Tim B., FL
But instead of using a recruiter most job seekers today opt for the “throw it all against the wall and see what sticks” philosophy in which they send their resume out to anyone and everyone that they can.
However, this approach couldn’t be more wrong.
You’ll waste a great deal of time and money and all you will likely end up with is frustration and disillusionment – instead of your perfect job at the top of your salary range.
Unfortunately, very few people on any level today really understand what recruiters do, how they do it (or why they ask so many questions before they’ll tell you much at all.)
But that’s all about to change thanks to Judi Perkins’s new book, “Demystifying Headhunters – How to Partner with Recruiters to Find Your Perfect Job: Everything You Need to Know About Attracting, Choosing, and Working With Recruiters (with lots of valuable information even if you’re not).”
This book is filled with everything you need to know to find the right recruiter – the recruiter who can help you land your perfect job.
Not planning on working with a recruiter? This book is also jam-packed with job search tips you can use to find your perfect job on your own!
Demystifying Headhunters – How to Partner with Recruiters to Find Your Perfect Job, helps you figure out how to find a recruiter, the best way to work with them, and then puts you in the mind of a recruiter so that you can establish a good relationship with them. Before reading this e-book, I thought recruiters were just for CEOs, but this information can help people at the managerial level (like me), and even those who may be working with temp or permanent placement agencies. This is not information rehashed from other books or websites; it offers new insights on how you think of presenting yourself and on how to use a recruiter to your advantage. Read it!
—Chandra F., MI
Here’s just some of what’s inside this amazing ebook:
- The three types of recruiters and which type to make sure you stay away from at all costs!
- Why you need a recruiter, even if you are happily employed – plus, what questions to ask to ensure you find the recruiter that’s right for you!
- How to find a quality recruiter among all the fake and ineffective ones on the Internet – plus, five not-to-be-overlooked ways to find a recruiter other than using the Internet!
- How to take control of your job search efforts and make sure you get noticed by all the right companies and recruiters!
- How to quickly determine if a recruiter is “a good one”!
- How to ensure you are remembered by a recruiter … step by easy step!
Plus, you’ll also learn:
- How to develop a “personality for success” – you’ll simply be amazed by what you read here!
- How to realistically assess your capabilities – and then jumpstart your job search by drawing attention to your strengths.
- What companies want now more than ever – and how to demonstrate to them that you have exactly what they need!
- Why your resume could be holding you back – other than your birth certificate, your resume is probably the most important professional document you’ll have in your entire life, yet people continue to make mistakes on them … find out exactly what should be in your resume!
- The one thing you should absolutely not do if you really want to land your perfect job – this is critical to your success … even if you read nothing else you must read this important tip!
- How to remove the filters or the “barriers to entry” in getting your perfect job – find out what you should do to ensure your resume gets read!
- The single best resource companies employ for finding new talent – and how you can best take advantage of it to secure your perfect job!
- The REAL truth about search firms and headhunters – find out if all of them really have the job seeker’s best interests in mind!
- Why only 2% of job seekers find work using job boards – and how you can get around this potential career road block!
- How to nail any interview – discover exactly what you need to do and say to ace an interview … including things the hiring manager will NEVER ask or tell you but that you need to be sure to communicate anyway!
- How to know when you should stick it out in a current position or move on!
- The proper way to respond to any offer – plus, why taking a counter offer from your existing employer is one of the worst mistakes you could ever make!
To learn more about this incredible book, including how you can get a copy for a very special low, low price on May 17 only, please visit www.FindthePerfectJob.com/bookbonus.
