Women and Money October 14, 2013Expert Blogs, PINK NotesOff

A critical mass of women – both married and single – control a greater share of the nations’ wealth and are assuming more powerful roles in their family’s financial decision making. And with longer life expectancy and more earning power, new generations of women are trailblazing complex life paths that present new challenges and opportunities.

Consider these statistics:

  • Women control more than 48% of estates worth more than $5 million according to Pax World Investments.
  • Women and Wealth found that the wealth owned by women is projected to grow by 8% annually from the end of 2009 through 2014.
  • 35% of women identify themselves as the primary financial decision maker of the household according to a Prudential study.

As a woman I understand the fear and intimidation we as women can have with money. I constantly have women telling me how fearful they are about their future with their money. When it comes to money, you don’t want to ignore it. Issues of money do not go away. They just get worse. It is kind of like a clean house if you do a little bit at a time, it will not be so overwhelming vs. not cleaning your house or organizing on a daily basis and then your stuff just piles up.

How to overcome a fear is to face that fear head on. The first step when it comes to facing your fears of money is getting a Financial Advisor. This person can help you by sitting down with you and taking an assessment of your situation and help you to set some goals. If you focus on your goals, then the future does not seem so scary. But more importantly, write your “Live It List.” This is commonly known as a “Bucket List” but instead of completing the list before you die, with a “Live It List” you complete the items on your list while enjoying life to the fullest. Personally, my life dramatically changed two years ago and I vowed to not live another day unhappy. So, I wrote my “Live It List” and I cross off one thing from the list every month.  Recently I have gone skydiving, rappelled down a building, ran a 5k, swam with sharks, drove a race car, went ziplining, flyfishing, swam with dolphins and the list goes on. Having a list keeps you focused on what is important to you in life which keeps you focused on your money. You will then live life with intention with your money and without fear.

I know that it is a tough economy and environment right now. I have had so many clients lose their jobs, lose loved ones, go through horrible divorces, struggle with medical issues, etc.  It has been a rough number of years and we can’t face the future with fear. I believe that planning is a continuous process and one of the main focuses should be at looking at the “what ifs” of your life so that you are better prepared and not so fearful of them. Do you have a plan for each of these situations?

1.       What if I lose my job?

2.       What if my spouse dies?

3.       What if I get a divorce?

4.       What if I die?

5.       What if I get pregnant?

6.       What if my parents die?

These are just a few questions that could come about in your life.  If you don’t have a plan, take one question at a time and answer it. All of your questions are life-changing situations and by planning for them you can ease your fear of the unknown and fear of money.  Oprah once said that we as women too often live unconsciously with our money. I completely agree. It is time with the new year fast approaching to set the intention to not live in fear of our money, to live consciously with our money and with true happiness. We need to face the future with optimism and confidence and know the answers to the “what ifs” of life.

Nicole N. Middendorf, CDFA www.prosperwell.comNicole is a registered principal with LPL Financial. For more information visit www.prosperwell.com. Securities offered through LPL Financial. Member FINRA/SIPC.

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