money management

Debt is a Bully with a Big Stick

August 5, 2015 by Mrs. MoneyJar Leave a Comment

If you’ve already read my first article, 5 Steps to Get Out of Financial Purgatory, you know that we’ve reached step #3 on the list. And, although, I am definitely not an expert on getting out of debt, life has taught me that you can’t wish it away or bury your head in the sand. I know, because I’ve tried. Debt, like the notorious bully, will grow bigger, punk you for your lunch money, and may even morph into something scarier later on.

Debt, as a whole, may contain an array of both secured and unsecured debt, but debt is debt and there are solutions for most debts that have gotten out of hand. How do you know it’s out of hand? Well, can you save money? Are you paying your bills on time? No? Then, it’s time to take a closer look at your finances. Is it worse than that? Are debt collectors breathing down your neck? Were you surprised by a Summons at your door? You’re not alone, and there is still hope.

Credit card debt, specifically, is the third largest debt in the U.S. and can be pretty damned sneaky with introductory rates, annual fees, late fees, and the promise of “rewards”. And, I bet when you applied for that credit card, you probably thought you could pay off the balance every month, or at least pay more than the minimum payments, and it would be paid off in no time. No harm, no foul. Unfortunately, that’s not always the case, as life (or other bills, debts) can and does get in the way.

“All told, the average American today owes about $225,000 in debt, in a country where the median household income is just barely more than $53,000.” – Credit.com

Debt can grow fast.

When introductory rates fall to the wayside, debt can grow bigger due to interest rate hikes, late fees, and annual fees. That can set you back a bit, but if it goes to collection, that can be when you’ll really see the fees add up. If you let it go long enough, it will get so big, you may be inclined to throw your hands up and give in, but I would caution you in doing that.

Debt can punk you.

When debt starts to spiral out of control, it will start to affect other areas of your life, and even steal things from you, now and in the future. As many of you probably already know, money problems can create friction in your relationship and stunt your family’s ability to do the things you need to do. Being delinquent can also hurt your credit, making it more difficult for you to purchase a house or vehicle later on.

Debt can morph.

What I mean by this is that your debt (credit card debt, medical bills, etc) can be bought by debt buyers, be turned over to lawyers, and you can be sued. All of the sudden that debt has become a judgment, which now has to be dealt with differently. Judgments are more complicated to settle, and can cause more damage if you don’t take action (garnishments, liens, etc).

Options to Help You Get Out of Debt

Pay it Off

The most obvious thing to do is to not acquire anymore debt and pay off your current debt by any means necessary. I’m sure you’ve heard of the debt roll-up, stacking, the ladder or avalanche method, or the ever popular, debt snowball. Most of these repayment methods all follow the same basic principle, and focus on the debt with the highest interest rate (you can also try a balance transfer to lower interest rates). For some, this may be hard to do if their highest interest rate debt is also their highest monthly payment. If you need to start small, then do the “snowball” and make more than the minimum payment on your smallest debt (regardless of interest rates) and roll it up from there.

Additionally, you may have some savings you don’t want to part with, but putting it towards your debt will most likely save you hundreds (if not thousands) of dollars in interest charges. Another options is to borrow money from friends and family to pay off debts in full, then repay the loan to your brother or parents interest free. Or, maybe you have a car, furniture, or jewelry you can sell that will enable you to throw some more money at your debts – the faster you pay it off, the better. Where there’s a will, there’s a way, my friends!

If paying is not an option for you, then keep reading.

Credit Counseling

The time to consider credit counseling is when you’re just starting to miss payments on your credit card bills, store cards, or medical bills. When this happened to me several years ago, I walked in to a local CCCS office and asked for help. They asked me to fill out some paperwork, then cut up my credit cards right there in the office (ouch). They then explained how they would get lower monthly payments, then consolidate them altogether so I could just make a single payment.

I’m proud to say that 18 months later, things were back on track, but you do have to qualify for credit counseling services. This is not necessarily difficult, but it’s worth noting, and you can learn all the details by reading Michael’s report on lowering monthly credit card payments.

Having been in credit counseling taught me a valuable lesson at a fairly young age (that would, unfortunately, revisit me later in life):

“Mistakes are the growing pains of wisdom.” – William Jordan

Debt Consolidation

Consolidation is for those who want to save on interest, but haven’t fallen behind on their credit card payments. It’s not for everyone, and consolidation isn’t as easy to do as it used to be, but if you’re 1) not behind on your credit card bills – yet 2) want lower interest rates 3) are willing and able (credit qualified) to open up a 0% interest account with a large enough credit line to cover your high interest rate balances, then this might work for you.

Consolidating your credit cards can be a bit tricky, as you may have to bounce from one card to another (to maintain those nifty intro rates), and you can’t become delinquent, as that would affect your credit score, thereby affecting your ability to open the large line of credit that would help you in the first place. If you have a credit card with a lower interest rate and some room to spare, you might be able to do a balance transfer. And, depending on your current rates and credit score, you might also consider a consolidation loan through peer to peer lending such as Lending Club or Prosper.

If you can walk the fine line, then by all means, start walkin’.

Debt Settlement

This option is for those who have already fallen way behind on their credit card bills. Getting a good settlement requires communication, timing, a lump sum payment, and hardship. You can call your creditor on your own or you can hire someone to do it for you, but you should first consider whether debt settlement is an appropriate solution for your situation and learn the fundamentals of getting a good settlement.

Debt settlement is for specific financial situations and will not work for everyone, and is something you do before considering bankruptcy.

I have settled debts in the past. The discounts I was able to negotiate were because the debts had gone so long without payment. I was lucky to not have been sued for collection. I could have filed for bankruptcy, but the balances on the debts I had to quit paying were relatively small. Had my debt load been bigger I would likely have chosen to wipe the debts out with a chapter 7 filing.

Bankruptcy

Bankruptcy is used when your credit card and other debts have become overwhelming. It’s considered a last resort, and although bankruptcy has negative connotations, that’s not how it should be viewed. Both my sister and some of my friends have been through bankruptcy. I don’t view them as failures, but as people who looked at their situation and made the best financial decision they could for themselves. What else can you do?

If you’re considering bankruptcy, keep in mind that you will be filing for Chapter 7 or Chapter 13 (7 will require a means test to qualify, depending on your state). There will also be a cost involved when you hire a bankruptcy attorney, but your initial consultation should be free and it’s highly recommended to get your questions answered, even if you decide against going this route.

More importantly, consider bankruptcy as a second chance. You have the opportunity to get rid of your debt and start over, and this time you can do things differently!

Doing Nothing

This really isn’t a viable option for anyone. Debt is like cancer…early detection and immediate action to eradicate the problem is vital for your success. In doing nothing, you’re allowing the banks, collectors, lawyers, and courts to decide your fate. And, believe me when I say that they do not have your best interests at heart.

The only time doing nothing might make even a little bit of sense is if you’re having hardships such as medical issues, divorce, brief unemployment, or some other temporary life event that would consume income that would otherwise be used to pay off your debts. If you are judgment proof (little to no income and/or assets that are exempt in your state), doing nothing about collection debts can mean looking over your shoulder…. forever.

Look, dealing with debt is, at best, a real pain in the ass. And, the longer you let it go, the harder it’s going to be to get rid of it. BUT, no matter what method you use, when all is said and done, I promise you’re going to feel like you just crawled out of a 6-foot hole and saw your first ray of sunshine.

Grab Your Stick

Debt can definitely come off like a bully, pushing you around and making your life miserable, but only if you let it. Take control of the situation, be brave, and fight back! Bullies all have one thing in common: they have a deep-rooted fear that you will stand up to them one day.

Do your homework. The above-mentioned methods for getting out of debt can be extremely helpful, but you have to pick the right tool for the job. So, assess your financial situation, find where you fit in, and get to work.

Hack Your Expenses for MORE Savings

July 30, 2015 by Mrs. MoneyJar Leave a Comment

Cutting expenses is #2 on the list of 5 Things to Get Out of Financial Purgatory. And, I hate to be the bearer of bad news, but you’re bleeding. The question is, “How bad is it?”. If you’re passed out on the floor, get up, because we have a lot of work to do.

I’m not gonna lie, this step might make you a little uncomfortable, but it’s necessary. To get where you want to be will require some discomfort and sacrifice, but you’ll see that it can be adjusted to whatever level you decide is best for you or your family.

3 Ways to Jumpstart Your Savings

First, get a list of ALL of your monthly expenses. ALL OF THEM.

The expenses we’re going to discuss here will fall into 3 categories: household bills, memberships/subscriptions, and entertainment. Bills such as rent/mortgage, car payments, credit card bills, medical debts, student loans cannot be reduced using the following three methods – negotiation, downgrading, or elimination (at least not in the way that I’m talking about in the examples below).

NEGOTIATE these types of expenses: cable, internet, phone, bottled water cooler (can fit in any category), garbage, alarm/security, some medical (per visit). Negotiation cannot be used for state or county regulated household bills (gas, power, water, etc).

You can choose to negotiate these bills yourself or choose a company like Billcutterz to do it for you (at a cost of half of your savings). If you do it yourself, there are a few things to keep in mind:

Be positive and friendly with whoever you speak to.
Don’t whine, but be honest about your inability to pay your bills.
Talk to someone who can actually help meet your needs (supervisor/manager)
Inmost cases, the business wants to retain you as a customer, but you’re telling them that you can’t pay your bill in it’s entirety, so be prepared to put cancellation on the table.

We negotiate a cash discount of 15% for any medical expenses outside of our insurance coverage, like dental or chiropractor care. You don’t know what businesses are willing to budge a little until you ask, SO ASK.

Post in the comments below if you are looking to negotiate a specific account and lets talk about some tips and tools to keep in mind. Be sure to provide some details of your situation.

DOWNGRADE these types of expenses: cell phone package, gym membership (unless you need to eliminate this cost), property maintenance, car insurance, health insurance, pest control.

Downgrading is pretty self-explanatory. For example, we’ve always had a family gym membership, but we needed to cut corners. My husband works out all the time and I love to utilize the exercise classes, so it’s not something we want to eliminate. Instead, we downgraded it to a Select Membership, meaning we all still have access to all of the facilities, but we can only come in at a certain time on weekdays. This downgrade saved us $675 per year!

We also looked over our car insurance coverage to save money. We raised some of our deductibles, lowered rental reimbursement and property damage, removed roadside assistance (since we have AAA), and made sure we were utilizing all of our discounts. This downgrade saved us $312 per year!

And, downgrading our cable bill saved us $763 per year! I’d love to get rid of cable altogether, but my husband and I are on opposite ends of the spectrum on this one, so we had to compromise. For others, it may be feasible to cancel cable and and get an antennae or rely on something cheaper, like Netflix or Hulu for TV entertainment.

ELIMINATE these types of expenses: magazine/newspaper subscriptions, Netflix, Spotify, going out to eat, paid entertainment (movies, shows, theme parks, etc), coffee, clothes shopping, house cleaning

One of the first expenses we eliminated completely was our water cooler, and saved ourselves $900 annually. We purchased a $20 filtered water pitcher and a $10 tea kettle (for hot water) instead. We’re also skipping the coffeehouses. It’s bad for saving and bad for our health. Two birds with one stone.

Whatever you can do for yourself, DO. Clean your own house, mow your own lawn (borrow a mower from a neighbor or hire a local teenager to drag his over and do it for you cheap), do your own repairs, make your own coffee, and cook your own food (as often as you can). Give yourself haircuts at your own risk (my mom’s a retired stylist – chalk one up for Mrs. MoneyJar).

Second, subscriptions can really add up. Be VERY selective with the digital ones. And, for the love of Peter, Paul and Mary, get rid of your newspaper and magazine subscriptions! It IS the 21st century, so most are readily available online. If not, you can certainly get your paper fix by wandering into a bookstore, coffee hangout, library, or local waiting room, free of charge.

Third, stay out of the malls and retail shops. Shop used. This includes clothes, furniture, cars, etc. Bonus – you’ll feel like a superstar when you find the perfect thing on the cheap!

Lastly, going out to eat and paid entertainment is where people lose the most money. I’ll be the first to tell you that “date night” is of extreme importance to your relationship, especially if you have kids, but you can also spend that date doing something OTHER than going out for a movie or eating at a fancy restaurant. And, there are also cheap things to do with kids.

Using the above methods, we were able to save a total of over $2600 per year! Cha-ching! That savings is going to go towards debt, then (hopefully), trickle into our money jar.

Do You Really Need a Credit Card in Your Wallet?

July 27, 2015 by Mrs. MoneyJar Leave a Comment

As mentioned in my introductory post, there are “5 Steps to Get Out of Financial Purgatory“. We’re going to focus on each individual step in this blog series, so you can understand how and why each is important, and maybe use some of the information to make changes in your own financial life.

Step one is to destroy those credit cards, and I stand by that (unless you are actually paying down your balance to zero every month – in which case, you’re exempt). I have been living without a single credit card for quite a few years now. I shredded all of them the same day I decided it wasn’t worth it, and although I cringed as I was doing it, I honestly wish I had done it sooner. Those credit card debts were settled for less than the original balance as soon as we had saved up for it.

I realize, to most of you, the idea of shredding your credit cards sounds extreme, but isn’t it more extreme to put a vacation, groceries, gifts, or bills on credit? To rely on something that will only cost you more in the long run? Not only is more debt accruing by way of interest, but aren’t you also just justifying living outside of your financial means?

Living a Life You can Afford

The reality is that credit cards allow you to say “yes” to purchases you should otherwise be saying “no” to. Living within your means can be difficult at times, and I understand the habit of reaching for your card to make things better, but that desperation to satisfy your own wants, or even the wants and needs of someone else, is no excuse for breaking this basic rule. Remember the Marshmallow experiment of the 1960s? Instant gratification has become so habitual, that it has affected our ability to be patient and save.

“Certainly, our march from one level of gratification to the next has imposed huge costs—most recently in a credit binge that nearly sank the global economy.”
– Paul Roberts, The American Scholar

Living a life without credit cards is not as difficult as you may think. They’re not must-haves or requirements for adulthood. You don’t even need them to build credit (contrary to popular belief). Without a credit card, you’re less likely to impulse shop, overspend, or go on an expensive vacation, because when you’re acutely aware of the amount of money you have in your wallet, your spending habits naturally decrease. It’s a psychological phenomenon —> “Research shows there’s pain in paying with cash.”

Hypothetically, if you pay $250 for a used bike for your 12 year old using cash or your debit card, the final cost is $250. You traded your money for a product that you wanted.

If you pay $250 to buy that same bike with your credit card instead, it will obviously cost you more. If you carry the balance, or just make the minimum monthly payments, you will be incurring 15% (or more) in interest. And, if we’re being honest here, your kid will probably outgrow the bike, and you’ll sell it at a garage sale for less than half the original price before you even get it paid off.

In comparison, wouldn’t it have been smarter to take the “discount” and get your instant gratification in the cash purchase? After all, I hear cash is still king (shocking, I know).

The Many Arguments for Credit Cards

Security. Carrying around large sums of cash offers no protection, but debit cards have come a long way in regards to security. Credit cards still offer marginally better fraud protection than debit cards, BUT if this is still a concern for you, consider one of the following: 1) set aside some cash in a separate account specifically for your debit card use, thus limiting the damage if some jackass hacker breaches your account 2) if your bank offers it, have photo ID added directly on your debit card for added security 3) or get a Paypal account and use their debit card for purchases – you can use it as a credit card or debit and either way, it has full fraud protection against unauthorized use.
Uh, security. This time, I’m referring to the security you feel having the credit card in your pocket as a lifeline. Just in case you want or need something you can’t afford. Just in case you’ve spent more than you earned. Just in case an unexpected event happens. “Just in case” is NOT a good strategy. It’s a disaster waiting to happen. Start an emergency fund instead – it’s cheaper. A great place to start is about 3 months’ worth of income.
Rewards. Oh, yes, the coveted credit card rewards! According to Megan Elliott of the CheatSheet, “Just 63% of card users surveyed by J.D. Power in 2014 said they completely understood how to earn rewards, 43% don’t know if there’s a maximum limit on their rewards, and 30% aren’t sure if or when rewards they’ve already earned expire.” The bottom line is this: if you can afford the minimum spending limits, stay organized enough to effectively collect and use the offers, AND you’re disciplined enough to pay off the the credit card monthly, then be my guest. If not, then it’s probably not worth it.
Status. This, by no means, applies to everyone, but it’s worth mentioning. Some credit cards are created in levels, making the top one appear “elite”, and may even come with more rewards or privileges. The truth is, the banks just want you to have more credit to “spend”, so they can make more off of you in the future. Carrying around a gold or black card doesn’t make you special, and in many cases, just gives you more debt, something shiny to show your friends, and a bigger ego.
Convenience. You can put just about anything on a credit card. It’s so convenient to use for your car and hotel reservations. It’s so simple to use at the grocery store, or use on Amazon for Christmas shopping. Clothes for the kids? New furniture? Family vacation? Swipe. Swipe. Swipe. Alternative: Save up and use your debit card. Added bonus: Chances are you’ll make more responsible choices on WHAT you spend your money on when you have to actually save for it.

The average American household has an average outstanding credit card balance of $15,609.

There are those that pay down their cards each month, and are responsible in the way they use credit. If you are one of those people, then my kudos to you. But for the rest of us, change is in desperate need. Even those of you who are making your minimum payments every month may be in trouble. You just don’t know it yet.

Your perspective, needs, and lifestyle may be worlds away from mine, but you are here for a reason. Things might be stagnant (can’t save), getting tight and starting to fall behind, possibly unmanageable, or maybe it’s tough to figure in the cost of your future. So, maybe, just maybe, your perspective needs a reboot and your home needs a money jar.

5 Steps to Get Out of Financial Purgatory

July 20, 2015 by Mrs. MoneyJar Leave a Comment

I know Purgatory sounds like a bad place to be, but it really comes down to the fact that you are, or have been, financially “stuck” for awhile. The way you manage or don’t manage your money can play a huge part in this, but the good news is that it’s only temporary and there are ways to clean up the mess and move forward with your future dreams, goals, and plans.

Purgatory [pur-guh-tawr-ee, -tohr-ee] noun, plural purgatories.
1. An extremely unpleasant experience; a temporary condition of suffering.

I’m in my 40s, married, with a couple of teenagers, and a few pets. I live in a nice rental home in a nice neighborhood with my super nice husband. We both work from home and make a middle-class income. Unfortunately, we still barely make ends meet and are part of the “almost half of Americans who aren’t saving for the future” (cue gasp), and, if I’m being honest, comes down to how we manage our money.

It’s not that we haven’t tried. We cut up all of our credit cards over 5 years ago. We’ve started a few savings accounts and “emergency funds”, but there was always an emergency or “have to” to cover…funeral travel, funding a business, broken cars, debt, unexpected moves, job loss, COLLEGE, etc. We actually had to move twice in one summer because of it. The summer before, we had to surrender a car we couldn’t afford due to a job loss that set us back the year before that. Life happens. This is really the first step – forgive yourself and move on.

Budgets and Semi-valid Excuses

Budgeting is an optional step, and a powerful tool, but you have to commit to it. It’s ideal for identifying problems in your finances and I highly recommend it, however, I don’t currently use one myself. Why? Well, I’m just not organized and disciplined enough – and I just don’t have time to go through receipts and calculate it all out month after month. Instead, I just calculate my expenses once (and update it, as needed). Another great alternative to doing a standard budget worksheet would be to use a budgeting app, which can be much more user-friendly and less time-consuming. Please feel free to put your recommendations in the comments below – I’d love to know what you’re using!

Unfortunately, the one thing you can’t track with even the most thorough budget is the unexpected, and there’s always something unexpected. Like having to buy cheer leading gear, your laptop falling off your desk, emergency room visits, getting paid two weeks late, large appliance repairs (we had to replace our washer twice and repair our new one 3 times), gifts, KIDS (school fees, yearbooks, clothes, trips, sports, fundraisers, etc), fence blowing away (<—actually happened), or friends and family visiting. The list, quite literally, never ends.

When budgeting, it can be difficult to track and impossible to predict, however, it is possible to try and estimate the unexpected, and then just make adjustments to show the actual amount spent in your budget.

Getting Down to the Money Fix

I’m not saying monthly budgeting is the devil (it is), but it’s just not for me. I prefer to just make more money and start saving without having to think about it all the time. I’m about user-friendliness and simplicity, so I have my one-time budget, change jar, and my dollar jar, which is like a mini-emergency fund. So, in our 40’s, with no savings or assets aside from a beat up (but paid off) SUV, what can we do?

Start with theses basic steps to a richer life, and follow the links to continue on your money management journey:

Cut up those credit cards. Stop using credit cards to fund your life.
Trim expenses. Negotiate bills, downgrade memberships, and eliminate non-essential expenses: cell phones, cable, bottled water coolers (get a filter), Spotify and other entertainment subscriptions, gym memberships, insurance premiums, shopping, paid entertainment (movies, shows, theme parks, etc – there are other fun free things to do with kids or without), and eating out.
Get out of debt. Pay it, snowball it, consolidate it, settle it, or file bankruptcy, but DO SOMETHING.
Start saving. It doesn’t matter if you’re 17 or 45, it’s never too early or too late to start. It could be a money jar, auto deposits, an emergency fund, etc. Just start saving.
Make more money. Get a part-time gig, sell stuff online, freelance, side hustle, start making small investments, etc. Do anything (legal) that will generate some additional income to put towards debts first, and then into savings.

As you can see, I’m not here to clip coupons with you. There are other blogs for that. I’m ready to get dirty, make a mess, and take control of my finances in a much larger way. I’m getting out of my own way, and leaving my own financial purgatory because this is for the damn birds. I have REAL dreams to fund!

If you want the details on how I’m doing on the Five Steps above, stick around. I’m still writing.

“The greatest adventure is what lies ahead.
Today and tomorrow are yet to be said.
The chances, the changes are all yours to make.
The mold of your life is in your hands to break.”
– J. R. R. TOLKIEN, The Hobbit

Women are not talking about money – here is why

April 23, 2015 by Michael Bovee Leave a Comment

A recent study by Fidelity Investments has uncovered some intriguing paradoxes about women’s relationship with money.

Despite the fact that 92 percent of the women involved in the study want to learn more about financial planning, and 83 percent want to get more involved in their finances in the next year, a whopping 80 percent admitted that they have refrained from discussing money with family and friends.

In addition, only 47 percent feel confident when talking about finances with a financial professional—compared to 77 percent who would be comfortable discussing medical issues with their doctor.

Where does this disconnect come from? Why are women eager to learn more about money, and yet reluctant to discuss it?

Fidelity’s study found that there are some common factors that make women closemouthed about financial topics: privacy worries and lack of confidence.

Privacy Worries

56 percent of respondents who have refrained from discussing finances with friends or family kept mum because money was “too personal,” while 35 percent didn’t want to share financial information with those they were close to, and 27 percent were raised not to discuss finances.

In addition, 32 percent of women feel uncomfortable discussing money, and 16 percent feel that the issue is taboo. 26 percent claim that the topic never comes up in conversation.

In short, it’s really tough to talk about money when we are socialized to keep this kind of information private.

Of all the reasons why we do not discuss finances, this is one of the most difficult to overcome. We worry that talking about money will make us vulnerable, make someone feel bad, or simply cross a tacit societal boundary—and those worries are not without merit.

So how do women overcome their financial reticence? Fidelity makes a couple of excellent suggestions for introducing financial conversations into your life without feeling overexposed:

Find a Financial “Buddy”:By making time on a regular basis to discuss financial matters with a trust-worthy friend, family member, mentor or financial expert, tackling financial goals can become less overwhelming and more attainable. In the same way that “gym buddies” keep each other motivated, financial confidantes can help both parties make progress and stay accountable.

Join an Online Conversation:Take advantage of online conversations with other women looking to get more involved in their finances, as well as experts providing insights and guidance.

Both of these options allow those who are interested in becoming more financially proficient to start and join conversations without feeling exposed.

Lack of Confidence

In addition to privacy concerns, women often have difficulty talking about money because they assume they do not know enough about the subject. 14 percent of respondents worry that talking about money would be a waste of time and 10 percent feel as though they do not understand finances well enough to talk intelligently about it.

According to Kathy Murphy, president of Fidelity’s Personal Investing:

“Beneath women’s reticence to talk about money lies a lack of confidence in their knowledge of financial planning and investing. This lack of confidence is really self-imposed. Our analysis of more than 12 million investors shows that women actually demonstrated stronger saving rates than their male counterparts and enjoyed better long-term investment performance when they did engage. Unfortunately, too many women still hesitate to take control of their finances.”

That confidence gap can feel like a Catch-22: you feel foolish for not knowing things, but asking questions feels too intimidating. So you continue worrying in silence and assuming you don’t know enough to talk intelligently.

But women have mastered many important money skills that they often tend to discount. According to Fidelity’s study, 82 percent of women are confident in managing their day-to-day budgets, and 74 percent are proactive about saving for the future. Women who are hesitant about making investment decisions simply need to build on the financial skill set they already have. Fidelity suggests several ways to do so:

Kick-Start Your Financial Education at Your Own Pace:There are numerous tools, tips and reference materials online which can help women boost their financial knowledge to the next level.

Take Advantage of Workplace Retirement Guidance:Many employers offer on-site financial workshops and guidance, yet the study shows that sixty-five percent of women are not taking advantage of retirement guidance made available to them through their workplace plan provider. Check if your employer offers onsite financial workshops or 1:1 guidance, sign up if available, or contact a financial services provider directly.

Work with an Expert:A financial professional can be a valuable resource to turn to with questions and to help build a roadmap for the future. When choosing an adviser, look for a good listener who communicates clearly about fees, professional designations, and investment advice. Interview the adviser before you make a commitment, to make sure you are comfortable and can build strong working relationship.

Take Action

The good news is that women are poised to take charge of their financial lives. Fidelity has shown that the majority of women already have great self-discipline when it comes to saving for the future—and they can apply that discipline to investing. According to Murphy, “The key is to take action now to ensure that your money is working just as hard as you do, so you can achieve the goals and live the life you deserve.”

This article by Emily Guy Birken first appeared on PT Money and was distributed by the Personal Finance Syndication Network.

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