7/12/2010
7 Wealthy Habits of Financially Secure Women
What do women, investing, and a counterfeit purse have in common? Read on -- and reap.
By Deborah Owens
Meet the woman with the counterfeit purse. She's the one who wears expensive clothes, dines out at fancy restaurants, and has a luxury car in her driveway. The catch? She doesn't have anything of real value.
The "counterfeit purse" symbolizes how a lot of seemingly sharp, successful women manage their financial identity: They don't.
The good news: You can take control of your own "purse" and learn how money works. You can speak the language of investing and, step by step, put yourself on the path of financial independence and security. You can create and maintain wealth.
Ready to begin? The "7 Wealthy Habits" -- Outlook, Vision, Appetite, Mindset, Focus, System, and Legacy -- can help you build a firm foundation:
1. A Wealthy Outlook: See the big picture
Think macro, not micro. Focus on a future vision and figure out what success means for you. Also, if you haven't already, create a net worth statement, a financial snapshot summarizing what you own and owe. It will help you see where you are now and, even more important, where you want to go.
2. A Wealthy Vision: Know who you are and what you value
Values matter in investing, and it's important to hold on to who you are and what you stand for. Know your skills, strengths, and sensibilities, and leverage them in your financial choices and decisions. Not only will you get your investment needs met, you will stay true to yourself.
3. A Wealthy Appetite: Feed your hunger
Develop a healthy appetite for knowledge. Take a class or two, attend local seminars and events, and read as much as you can. You will build confidence, boost your know-how, and be up on what's happening in the economy and the markets. You can also learn about new investment ideas and opportunities.
4. A Wealthy Mindset: Move to the beat of your own drum
Resist the temptation to follow the crowd. The "herd instinct" may be natural, but it isn't always the way to go. It can cloud your judgment, cause panic or fear, or create unnecessary confusion. As a result, you might make a decision -- to buy or sell a particular stock, for instance -- that doesn't line up with your goals.
5. A Wealthy Focus: Keep a watchful eye on your goals
Know your objectives and timelines, and be clear on what you need to do to stay on track. At regular intervals, look at how your portfolio is divided -- balanced between stocks, bonds, and mutual funds -- and stay the course or make adjustments based on where you are time-wise relative to your goals.
6. A Wealthy System: Get organized
Set up a simple system to help you get and stay organized. It need not be fancy or complicated -- just an easy way, online or offline, to monitor and manage your investments. You can make changes to the system as you go, but at the start, stick with the basics.
7. A Wealthy Legacy: Teach your children well
Pay it forward. Help your daughters, granddaughters, and other young women to go into the adult world thinking and acting like wealthy women do and, perhaps, avoiding the financial mistakes that you once made. Invest in others, and in the giving you will receive.
Finally, commit to a long-term strategy -- one that keeps money invested for five years or more. You will increase your opportunities for gains and help create true financial security. You will realize the "Power of the Purse"!
Deborah Owens is a nationally recognized expert on investment literacy and creating and maintaining wealth. She is author of "A Purse of Your Own: An Easy Guide to Financial Security" (Simon & Schuster, 2010, $15.00) and a popular media personality known to audiences of PBS, NPR, and other broadcast networks. Contact her on the Web at deborahowens.com.
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