Quote of the day:
Khalil Gibran: There are two types of people, one who sleeps in the light and one who wakes up in the darkness.
Hello ladies - today I want to share with you - what taking back the keys to your kingdom means - It is one of our core building blocks here at WomanCEO, as it has such a profound impact.
Taking back the keys to your kingdom means no matter what, you will not give your power to anyone or anything. When we operate from our control, we are working at our authentic and most highly vibrational self - When we are in our power, we attract potent things. This power in our highest vibration - We start attracting tall vibrational people, and opportunities start presenting themselves.
Today, we are standing in our truth - Our truth about money and what it represents to us now, in our current economic crisis, and what techniques or practices to shift us to a highly vibrational self, attracting wealth paving the way to the CEO in you.
Today's economy, most of us, if not all, have been brought to our knees, some sort, shape or form; we all have been dealt with some cards, where we found ourselves scratching our heads, going, huh? What? Why? How?
You are not alone - One of the most inhumane practices we can take is to isolate ourselves; we are not made for isolation and lack of connection and touch.
Yes, I know, we have zoom and trust me, I have had my share of Zoom happy hours. But there are actual chemicals in our brain, such as oxytocin and dopamine, that make you feel affection and euphoria; kissing releases serotonin - which is another feel-good chemical.
I call these the happy juices - Because whether you are giving a hug, snuggling next to someone you adore, or having a heavy make-out sesh - Girl! Those are some happy juices!
This economy has hurt our chemical, mental health due to the lack of happy juices and isolations causing a world-win of mental disorders; on top of that, we have gotten a massive hit in our financial health.
The divorce rate is the highest as of late, which they have been calling the "divorce pandemic" because one of the leading causes for divorce is money! So WTF? What is happening? This is when I wish I had a magic wand to make all this BS disappear and make the world feel some happy juices.
When I read about this pandemic divorce amongst couples, it made me ask - what is the real reason people are uncoupling? Is it financial issues?
Could it be a part of communication?
Could it be a part of fear, anger, maybe shame? I know one of my closest friends is getting a divorce, and it is heartbreaking - because, on top of it all, we add this to the mix! Where is the joy!
This economic crisis has made us face some demons within us, outside us, and all around us - I could write a book on my experience in just this last year - Actually could be a few novels. Where do I even begin?
But in today's podcast, it is not about me but you. I want to share a few secrets with you in hopes of giving you some insight and clarity on your money situation that could eliminate the overthinking of what to do next.
In my previous podcast, released Wednesday, I speak about self-love and how self-love changed my personal financial life, habits, how I was managing my money, and the value I put on my money.
We never really teach you these things - We are taught to go to business school to run a business, never taught about running our primary business, which is ourselves. Our emotions, thoughts, relationships, habits, beliefs, and beliefs have been conditioned somehow and somehow. I know you feel me on this one.
But let's face it, This is a time when brought to our knees, and you have a decision to make - Who are you going to be when everything goes back to somewhat the norm? What have you learned from all these shenanigans? What are your lessons and blessings? What have you practices that did work, and maybe some didn't quite make it to the finish line? Write about it, and be honest with yourself. If you are not honest with yourself, who will be.
Our stats in the US of having an emergency fund is less than 40%. That is right; over 60% of Americans do not have an 8 to 10-month emergency fund, which was pre-covid. Can you imagine what the stats are now?
But let's be in our truth. This podcast is about having a courageous conversation around money. So let's not beat around the bush and squash it.
To move the needle in the money realm, you have to ask yourself if you have an 8-10 month emergency fund. If you do, excellent, we will focus on step 2 - however, if you do not have an emergency fund, girl, don't you wish you had that right now? Or, better yet, maybe made some better decisions around money? Well, today, you get to decide if this is your calling to change your situationship into a relationship with your money.
Step 1. look at your spending habits; where can you cut costs?
2. Identify your needs vs. wants - and no, we do not have different needs and wants, and needs are requirements necessity to live, food, lodging, gas to travel to work - those are needs. Wants is anything else that can be put on hold- until we focus on the emergency fund.
3. If you have a mortgage, credit card payment, Federal student loans, it can be reduced.
Call your mortgage lender and have them work with you on your mortgage payments - you could easily save about 2 to 3K a month if you live in an expensive city like Los Angeles.
Step 2. call your credit card company, even if you can pay it -as them for a relief program. Reduce your monthly payment and put that extra money you would typically pay for your credit card into your emergency fund. Focus on your student loans, be deferred as well, and the money you would use to pay those off, put it into your emergency fund.
Watch your spending on food - girl, I know - I am a foodie, but I too had to make some changes, even if I could afford it. Don't go to restaurants, but make your dinner at home.
And this leads me to the last but most significant factor about money tips. To take the keys to your kingdom, you need to live below your means but within your needs. - Let me repeat.… Live below your means, but within your needs.
We often have expensive cars, penthouse apartments, no cash savings, and no investments because we are too busy chasing the jones and wanting the next best thing.
I will share storytime on this particular subject in another episode, as there is a lot to cover. But for now, let's focus on that emergency fund.
Step 3. If you have your emergency fund, and now onto the next step - Do you have a retirement account? If so, which ones? Are they Tax now, Tax later, or Tax advantage? If you are not sure - Here are the detez:
You are paying taxes now (after-tax) - checking, savings, CD's Stocks, and mutual funds.
Tax later, you pay taxes when you pull out your money - 401k, 403B, IRA/SEP IRA, Annuity, and Pensions.
Tax Advantage is when you don't pay taxes on the gains: Roth IRA/ 529 College Savings, Mini Bonds, Health Savings Account, Life Insurance, Long Term Care and Death Benefits.
When I sit with my clients for financial planning, I diversify these three top investment portfolios.
However, not one size fits all, as it all depends on your age, how aggressive we need to be in terms of investing, and what your short and long-term goals are - Are you buying a house, retiring soon?
Another investment rule is if you will need the money in less than a year - do not invest it.
Because taking out your money before has a high risk, and also, if the market tanks, you could risk losing tons of money, not to mention penalty if you are taking it out sooner than expected. Do your homework on what account is best for you and where you want your money to grow.
Investments accounts are for retirement, so the longer you leave your money in them, the longer you can save, and if you can have the benefit of compound interest.
Knowing the Rule of 72 - Super Super important - The Rule of 72 shows how to calculate compound interest's effect with a simple formula 72 divided by the rate of return. That equals the years to double your money.
For example: with a 4% rate of return, you take 72/4 = 18 - So it will take 18 years to double your money. See why keeping your money in your investment can lead to more savings and compound interest, and this is the juice!
There is a saying of nothing in particular, except death and taxes! I know, super morbid.
Well, let's talk taxes for a minute since that is my expertise.
If typically you owe taxes each year, then what are you doing with that money? Are you paying uncle sam? Well, did you ever ask yourself what you can do to avoid paying uncle sam but instead putting that extra 2 - 3 thousand dollar maybe in an investment account? 401k / Life insurance, etc.?
This could save you hundreds, if not thousands.
f you typically get a refund back, you still should audit your finances and ask yourself why you keep getting a refund? Are you paying too much taxes in advance to uncle sam? Let's assume you are getting back a $1000 refund - Well are you getting back interest on that $1000? no - so why do most people look at it as a positive outlook?
Yes, you could argue it's better to get a refund but to owe, but that is the whole point. Knowing where your money goes, paying too much, and where your investment and tax strategies need to take place, and if you are paying too much taxes and getting a refund, where can you adjust your tax rate to reflect a break-even point.
The more awareness you bring to yourself, the more you can have an honest conversation about yourself and make the change. We so often are so busy asking other people the questions when we really should be asking ourselves. No one can live your life for you - It is up to you to make the change and stand in your truth.
Use this optimal time to think, strategize, get the title to your kingdom in your name and get your keys, girl!
Self-love is about being honest with yourself and being fearless in the pursuit of what makes your soul sing. So empower yourself to change your money habits, learn to pivot when needed, adapt, and go full throttle on your dreams.
Remember to stay in your highest vibration and have courageous conversations around money.
So we covered a lot in today's episode; we brushed on emergency funds, how to get your expenses reduced by contacting your lenders.
We also went over some investment strategies and which options are taxable, non-taxable, and tax advantages. We also went through your tax return owned or refunded by uncle sam and tips to audit.
And most importantly, I invite you to get to know yourself at a deep level, stand in your truth, be vulnerable - because vulnerability is one of the most courageous things one can do - And I honor your courage.
I will have more content on our Facebook group, WomanCEO-money chat, this upcoming week, so please check it out if you want more detailed information on this episode.