Why?

Sabotaging Yourself Without Knowing It

Change Your Mindset

Putting yourself down directly is the most destructive negative mental habit people have, This habit is hard to break,  because negative self-talk evolves into an automatic impulse for many. Women in particular get into the habit of downplaying our accomplishments to others (and ourselves), becoming overly self-effacing.

Doubting Yourself

When you lack self-confidence, you end up doubting your potential and your abilities. This may stop you from applying for a job, asking for a (deserved) raise or taking on more responsibility at work.

Try to turn your doubts into opportunities for teachable moments. Accomplishing tasks that feel daunting will eventually boost your confidence.

Comparing Yourself to Others

Whenever we judge other people we submerge ourselves in a toxic pool of false assumptions and negativity.

Remember that what you see from the outside is likely never the full picture into someone else's life. 

Decision-Making Out of Fear

Fear is hard-wired into our central nervous system and in many ways serves us well. Fear can also paralyse us into playing it too safe — to the point that we might miss out on opportunities to accomplish our dreams (or even our short-term goals).

To reframe your decision-making process, zero in on what's keeping you from taking a leap in life, whether career-wise or personally.

Feeling Isolated

Be wary of spending too much time on your computer, in chat rooms and so on. Make sure you schedule some time with a friend at least once a week. 

Source: Dailyworth

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Womenomics

Global Financial Literacy

Suppose you put $100 in a savings account that earns 10% interest each year. After five years how much will you have? That was a question posed in a multiple-choice quiz (completed by 150,000 people in 144 countries) by Standard & Poor’s, a rating agency. The answers proferred were "less than $150", "exactly $150" and "more than $150". The intention was to test whether respondents understood compound interest, in addition to basic mathematics. Alas, not that many did: just one-third of them answered three out of five similar multiple-choice questions correctly. Scandinavians are the most financially literate: 70% were able to answer three questions correctly; the corresponding figure for Angolans and Albanians was 15%. While education plays a large role in determining financial literacy, the link with GDP per person is remarkably strong, too (see chart).

Previous research has shown that it can be difficult to drum in financial know-how at a young age. Instead, it is gained through experience. In developed countries, knowledge follows a U-shaped curve, with middle-aged adults performing better in financial-literacy surveys than both the young and the old (who, through a combination of cognitive impairment and less education, do worse). In developing countries, financial literacy is better among the young, who have typically received more schooling.
The survey, the largest of its kind, demonstrates a striking gender divide in financial literacy. In 93 countries, the gap in correct answers between men and women was more than five percentage points. In Canada, 77% of men answered three questions correctly; the corresponding figure for women was just 60%. Women's lack of knowledge might well be explained by the deferring of financial decision-making to their husbands. But worryingly, the gender gap persists among well-educated single women too. When it comes to financial decision-making, many countries appear to be stuck in a 1960s time warp.

Source: The Economist

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Musings & Amusings

Can’t say I was a fan of Leaning In so loved Lucy Kellaway’s comments (didn’t read the whole book I confess):

Stop leaning in at once. It isn’t a comfortable position to adopt, and I’m not at all surprised to hear that after 18 months you are suffering in body and soul. Forget Sheryl Sandberg and try my three easy rules for leaning out which I have been perfecting for the past quarter of a century.

1. Never ever go to any evening events for work unless you think they would be a) enjoyable, b) useful in a specific way, or c) not going would do you harm. In my experience so few things fall into any of the categories; it means only turning up to things once or twice a year. This has the advantage that when you do present yourself you are such a novelty that everyone will want to talk to you. It’s called scarcity value. Choke off the supply of yourself, and watch the price go up.

2. Try to work out what you are measured on. If you are a fund manager, presumably you are measured on whether you make any money for your clients. This isn’t directly related to the amount of time you spend, so do it as well as you can — and then go home.

3. Stop caring quite so much. That doesn’t mean performing worse, it means worrying less. This is one of the main advantages of having children. They are a reminder that work only matters up to a point. Most mothers get this wrong by feeling full of guilt — when they are in one sphere they look over their shoulders worrying about what they aren’t doing in the other.

Source: Financial Times

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Everyday Money

Setting Aside Shame and Blame in Financial Decisions

Shame fails at changing behaviour, it can also trigger the very mistakes we’re trying to avoid. Shame is something we internalise, and we capture it with a statement like, “I’m a bad person.” With guilt, we focus on the action and say, “I made a mistake. That’s really dumb.” In other words, we make shame about us, but guilt is about the event.

Think about the last money conversation you may have had with a spouse or partner. Imagine there was a financial “event,” and with the benefit of hindsight, you label that event a mistake. What happens next has probably happened to all of us at least once. One or both of you may have shamed and blamed the other for the mistake. One couple I know experienced such an event, and I have watched them shame and blame each other for the last decade. 

So to help you stick to the rule, I want you grab a hat and a Sharpie. No, really. Grab an actual hat and a Sharpie. Maybe one of those trucker hats with an oversize crown. Then, across the front, write, “No shame. No blame.” Every time you talk about money, wear your hat.

Source: NY Times

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Who's Counting?

8 Ways Women's Lives Have Changed For The Better Since 2005

1. More women have access to higher quality health care.
2. Women's representation in politics is higher than it's ever been.
3. Same sex marriage is legal
4. Women’s equality in the workplace has improved – along with our ability to fight for it.
5. The entertainment industry finally started to recognise that women are consumers of pop culture, want to see our experiences represented, and are pretty good at telling those stories for ourselves.
6. Young, single women caught up to their male peers in some professions.
7. We see more and more women at the top of their fields, actively paving the way for the next generation.
8. Women's voices and experiences are better represented in the media - especially online - bringing new weight to the term "lady blog."

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Finance & Investments

The key component of personal finance is financial planning, which is a dynamic process that requires regular monitoring and reevaluation. In general, it involves five steps:

1. Assessment: A person's financial situation is assessed by compiling simplified versions of financial statements including balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal income statement lists personal income and expenses.
2. Goal setting: Having multiple goals is common, including a mix of short- and long-term goals. For example, a long-term goal would be to "retire at age 65 with a personal net worth of $1,000,000," while a short-term goal would be to "save up for a new computer in the next month." Setting financial goals helps to direct financial planning. Goal setting is done with an objective to meet specific financial requirements.
3. Plan creation: The financial plan details how to accomplish the goals. It could include, for example, reducing unnecessary expenses, increasing the employment income, or investing in the stock market.
4. Execution: Execution of a financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers.
5. Monitoring and reassessment: As time passes, the financial plan is monitored for possible adjustments or reassessments.

Areas of focus
The six key areas of personal financial planning are:
1. Financial position
2. Adequate protection
3. Tax planning
4. Investment and accumulation goals
5. Retirement planning
6. Estate planning

Yes, I know I’ve written about this before but it is always worth repeating. More on this topic in “Girls Just Want to Have Fund$,” “Money, Money, Money Ain’t it Funny” and “Smart Money” available now as ebooks.

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