Financial Information From Manisha Thakor

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Posted on April 12, 2011 at 7:46 AM

The Financial Rise Of Women & WivesIs This The One Silver Lining of The Economic Downturn?

·         Rise of The She-Conomy: The "He-Session" (8 out of 10 jobs lost by men) has given rise to the "She-Economy (in the summer of 2010 the number of women in the paid workforce eclipsed the number of men for the first time ever)
 
·         Women Bringing Home More Bacon: The result is women & wives bringing home more of the bacon (In 2011 The White House released it's "Women in America" report - first comprehensive look in 50 years). Women bring home 29% of total household income. 27% of women earn more than husbands. 57% of couples are dual income households.
 
·         Makes Pay In-equality Everyone's Issue: Women are still earning only $0.77 on the male dollar. Now that women's incomes mean so much for families this makes the issue a family issue. Root causes are: (a) types of jobs women choose, (b) women not asking for raises, (c) women doing more work at home than men - exhaustion, (d) women spending an average of 11 more years out of the paid workforce than men.
 
 
Three Savings Myths - Busted!The National Savings Rate is Going Up... But Are People Still Telling Tall Tales?
 
·         I'll save more when I make more:  I've seen people save on incomes of $30,000 a year and not have 2 nickels to rub together on incomes of $300,000 a year. It's about a mindset. It's also not true that it will be easier to save when you make more because "lifestyle creep" kicks in.
 
·         Starting a few years later won't make that big a differenceStarting to save just 2 years later for your retirement (say at age 30 vs age 28) can mean you have 20% less money. If you start 20 years later you could have 80% less money! Small amounts can add up. Coinstar estimates Americans have $10 billion in loose change floating around.
 
·         Saving is all about deprivation:Saving is about spending - just spending that you'll do down the road. Also, academic studies show it's experiences, not things that make us happiest after our basic needs are met.
 
 
Are Your On Financial Track? What Are The Financial Milestones to Hit by Decade?
 
·         In Your 20s & 30s: Learn to live within your means & build a solid financial foundation
·         In Your 40s & 50s: Avoid lifestyle creep & swinging for the (retirement) fences
·         In Your 60s & 70s:  Avoid over-nibbling on your nest egg & maintain your health
·         In Your 80s & beyond: Live it up
 
 
Budgeting 101What Does Healthy Spending Look Like?
 
·         Most people have no idea: We have a food pyramid, so even though you may not eat healthily, you know roughly what you should be doing. But many people have no idea when it comes to what a healthy spending pyramid looks like.
 
·         The 50/30/20 Rule: My favorite comes from Elizabeth Warren & her book ALL YOUR WORTH. 50% of your take-home pay goes to NEEDS, 30% of your take-home pay goes to WANTS, and 20% of your take-home pay is for SAVINGS. Follow that simple formula and you'll be in great shape.
 
·         How to track your money: It's sounds boring but it works - do it like a diet dairy and write it all down and then at the end of the month do some basic math to see what your percentages are.
 
 
Dominate Your Debt: What Must People Know About Student Loan & Credit Card Debt?
 
·         Student Loans: Collectively we have more in America in student loan debts than credit card debt. Even in bankruptcy these debts don't go away. Top 3 things to know: (1) If you are 90 days late they will go into collections and your financial life can spin out of control - harder to get job, apartment, car loan, insurance, etc... (2) Many students forget to update their address so lenders can't find them when grace period is over - simple fix for that, (3) If you have trouble talk to your lender about forbearance or deference.
 
·         Credit Cards: Ridiculously expensive. Credit card act has helped but if you have it, best thing you can do is add an extra $50, $100 or $150 a months to your minimum payments (depending upon whether your debt is <$5,000, between $5,001 - $10,000, or > $10,001 respectively).
 
·          Starting a few years later won't make that big a difference: Starting to save just 2 years later for your retirement (say at age 30 vs age 28) can mean you have 20% less money. If you start 20 years later you could have 80% less money! Small amounts can add up. Coinstar estimates Americans have $10 billion in loose change floating around.
 
·         Debt is a Four Letter Word:Literally and figuratively. People are remembering this again now. But if you've purchased something with debt, you don't own that item. The lender does.  

 

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