Girl, Make Your Money Grow! by Glinda Bridgforth and Gail Perry-Mason

Hey ladies and gents! Welcome back! I apologize for not posting last Thursday. If I had remembered that it was a national holiday, I would have given advance notice that I wouldn't be posting. :-( Anyway back to the books!

The book in the spotlight this week is a sequel, if you will, to the previous book. This time Ms. Bridgforth had some help from the VP of Financial Services at Oppenheimer & Co., Inc. to write it - Ms. Gail Perry-Mason. This time around I'm just going to bring out some main points from each chapter. Let's dig in, shall we?

Chapter One: Sisters Can't Afford Not to Invest
One fundamental truth to keep in mind is if you work hard for your money then you deserve to see it grow not go. Over time, investing allows you to stop working for your rent or mortgage, car payments, utility bills, etc. so that you can start working for yourself. (Italics theirs.) According to Mellody Hobson, president of Ariel Captial Management, Inc., the best way to make your money grow is to adopt a long-term view of investing. You watch your money and you move it when necessary, but don't be overly concerned about a week's or a month's performance. Investing is not for the short term, so don't go into it thinking that you'll just take your money out after two years. Yet still remain aware of current economic conditions and how they affect certain industries. The sooner you start investing the better! Remember the Rule of 72: If your rate of return is 8% per year, then you divide 8 into 72, which equals 9. So in 9 years your investment of $1,000 would be worth $2,000 but only if you do not touch it.

Still, some people are reluctant to start investing because they worry about keeping an eye on their investments 24/7 and that they'll never learn how to read stock pages. But according to this book, once you get the hang of it, it's easy. To familiarize yourself with terms, try watching the news or reading USA Today. One way to speed up your investment education is to find an investment adviser. Another easy approach to educating yourself is by paying attention to the brands you buy when you go grocery shopping. Pay attention to which companies own which products. By buying from them, you are contributing to the share value their company. Why not invest so you can get a little of that money back?

Chapter Two: Clear the Debt and Clear the Deck - for Investing
First things first. You must check (and keep track of) your spending. I don't think this point can be stressed enough. No matter how well you plan to spend your paycheck, if you continue to increase your debt load, it's unlikely that you will make your money grow. Debt doesn't just mean credit cards either. Committing to anything that you can't afford puts you further in the hole. Glinda and Gail recommend another book entitled How to Get Out of Debt, Stay Out of Debt and Live Prosperously by Jerrold Mundis. His book is based on the principles of Debtors Anonymous.

Chapter Three: Living on Fifth Avenue: Exciting Ways to Create Five Streams of Income
Take a look at the hobbies or things that you enjoy doing in your spare time. Is there a possible way that you can make some extra income by helping others to do the same? If not, there are a few other ways to generate some extra income:
1. Mystery Shoppers - While this is not recommended for compulsive shoppers or buyers, this gig is a fun way to make some extra money. Mystery shoppers work market research companies and make about $15 to $25 per shopping trip. Check out Athpower.com, Secretshopnet.com, and Bestmark.com to get you started.
2. Consignment Selling and Buying - If you have clothes that are in good shape but that you no longer wear, take them to a consignment shop! Be sure to check whether the store pays you in cash or with store credit.
3. Own a Diebold ATM or Vending Machine - Your main responsibility with this venture is to find the right location. Diebold offers several options for owning a machine so check them out at http://www.diebold.com/. Be sure to do your homework first! If you go the vending machine route, you will be responsible for resupplying it.
4. Giving Your Opinion - Becoming a participant in a focus group is another way to make money outside of your regular job. You may be paid as much as $75 per hour and up to $800 per day. Do a Web search for focus groups.

Chapter Four: Fire Up Your Imagination to Dream Again
You can use your talents, savings, and opportunities to move toward a larger purpose. By identifying your dreams and goals, you'll gain the motivation to continue transforming any damaging beliefs and spending patterns. Create your own personal Mission Statement. It can give you a renewed sense of clarity and purpose. Mission Statements help us to recognize our hearts' desires and then keep them in sight despite the day-to-day obligations we face.

Chapter Five: Insuring Yourself and Your Investments
This chapter basically covers various types of insurance and professional companies to help you make sense of it all. They cover health, life, homeowner's, renter's, mortgage, disability, and long-term care insurance.

Chapter Six: Don't Let Your Assets Retire Before You
In this chapter, Glinda and Gail list the things you can do at different stages in your life. In your twenties and mid-thirties, you can enroll in your company's retirement plan, open both regular and Roth IRA accounts, and DO NOT borrow from your 401(k). From your mid-thirties through forty-five, increase your contribution in your retirement plan, review your financial statements more often, balance your investments annually, and request a benefit printout from the Social Security Administration. From your mid-forties through sixty-two, do all of the above and remember not to take early distributions from your retirement plan before age 59 1/2. From sixty-two to eighty and beyond, get investment checkups annually, check your investment strategies for income for a larger percentage of your investments.

Chapter Seven: Owning Your Piece of the Rock
After reading just the first few parts of this chapter, I must say I'm ready to own a house! Lol. The emotional benefits of homeownership include increased indoor and outdoor living space, the comforting sense of privacy and stability, and personal security. Not long ago, African Americans owned more land per capita than any other American ethnic group. Too many of us spend disproportionately more on vehicles and material possessions than on real estate. I can't help but think of this fact when I see a Range Rover, Mercedes-Benz or similar cars regularly parked in an apartment complex's parking lot. There is nothing wrong with owning a vehicle that's worth $40k or more however if you are still paying rent to a landlord, you may want to reexamine your priorities. Four good economic reasons to purchase a home are tax deductions, budget stability, appreciation, and investment leverage. Of course, the book goes into further detail on each reason. But you'll have to read it to find out more. :-) She also talks about buying on a land contract, investing in income property (one thing I've considered before), inherited property, and other income property investment options.

Chapter Eight: Taking the Mystery Out of the Market
Look at products that you use regularly and ask yourself the following questions: Where do I shop? What do I buy? What makeup do I wear? Where do I bank? What kind of purse do I carry? Where do I go for vacation? What do I eat? What kind of car do I drive? What kind of gas do I use? What type of computer do I own? What types of entertainment do I like?
When you think about it with those questions, there are really tons of companies to invest in. Remember that by investing in a company, you are becoming a shareholder and therefore are a part owner (no matter how small) of that company. Research the stock symbols for the companies you are interested in investing in. After you purchase a stock, recheck the broker ratings and "insider" trading activity on a regular basis.

Chapter Nine: Investing in Stocks, Bonds, and Mutual Funds
This chapter helps you to understand in depth just what stocks, bond, and mutual funds are all about. There is soooo much information in this chapter that if I tried to simplify it or bring out major points, I would no doubt be leaving out much, much more that you would need to know. So, of course and as always, I thoroughly recommend reading this book.

Chapter Ten: What's Your Investment Style?
The last but certainly not least important chapter is on your investment style. Black women have long been known for their style and the unique ways in which they express it. You can have the same kind of attitude and confidence towards your investment style. The part I especially enjoyed reading (and would like to implement soon) is starting an investment club. There are 13 things to do in order to get your club on the right track: 1. Introduce the idea to someone you know. 2. Agree on a common investment philosophy. 3. Establish rules. 4. Vote on a monthly contribution amount. 5. Elect officers and adopt an investment club agreement. 6. Schedule a regular club meeting date and time. 7. Delegate responsibilities. 8. Promote education. 9. Allow for debate. 10. Invite professionals to some of your meetings. 11. Consider enrolling the club with the NAIC (National Association of Investors Corporation). 12. Place your club online. and 13. Hold a special club dinner to socialize.

When I think about those guidelines seem like a good fit for most productive clubs that anyone is thinking of starting! Tidbits to remember while building your portfolio are start with cash, fully fund your retirement plan at work first, and be clear on the amount of risk your comfortable with.

I think with the many, many helpful points brought out in this book, everyone (not just my African-American ladies but all ladies) can rest assured that making your money grow is not as hard as it may seem. It just takes a cup of determination, a tablespoon of research, and a gallon of discipline lol. This book is a must-have guide for any woman who wants to have power over her money.

~BB~

Girl, Get Your Money Straight! by Glinda Bridgforth

This week I'm going to dig a little into the financial side of the world. I went back deep into my book arsenal (kept nice and neatly in my livingroom) and found this book by Ms. Bridgforth. As long as the world continues to use money, you can never read enough on keeping yourself out of the financial grave. This particular book was written by and is written for the sistas....however I think everyone can benefit :-) and so I'm let the healing begin!

As you can see from the front of the book, Glinda (love the way her name is spelled by the way) makes it simple to navigate through what may be a treacherous time for some women today. There are 7 easy steps to take in order to, as she says, heal your bank account and fund your dreams. First off, I'm sure you've heard that the first step to overcoming any problem is to acknowledge that there is a problem. In today's society, it is VERY hard to acknowledge that you might be having financial problems. Everyone is about getting and spending money. They breathe, sleep, eat, and poop thinking about how to get money and what they are going to spend it on next. Others brag about how much money they have to spend. You may feel the pressure to spend as well even if you don't have the money to do so. :-(

Therein lies the problem that makes it absolutely beneficial and necessary that you pay attention to the contents of Glinda's book. Let's dig in, shall we?

First things first, in order to succeed in any area of your life, you must be in the right mindset. If not, you ultimately will fail. Part one of this books makes you think deeply about the reason you are in trouble financially. She goes past the obvious reasons of peer pressure and talks about how your family history affects the way you see and handle money. I like how Glinda lets you in on all of the details of her life and how she has come from being financially burdened (and why) and how she has triumphed over such sore straits. To begin financial healing, it's important to let go of negative energy by forgiving yourself and anyone else for whom you might harbor feelings of blame. In her case, she and her ex-husband accumulated $50,000 in debt together and everyone knows you divorce people, not shared debt. There are three things to keep in mind while on the road to financial healing: 1. Be accepting of yourself and your present circumstances. 2. Be grateful for life's lessons. and 3. Be patient with yourself.

This is yet another book that I'm love to do death! I'm going to try really hard to keep this summary simple, to the point, and interesting because I want you to actually read the book. There is soooo much information in here that I could spend forever talking about.

You begin to see in Chapter 2 why this book is tailored to black women. The topics she elaborates on are how culture influences our emotional attitudes, the challenges of African-American history and heritage, contemporary workplace woes, shopping while black, the distorted mirror of American media, salving our wounds with money, "keeping" our men in more ways than one, and being obsessed with looking good though we are broke. All of those were sections worthy of more than just a summary. However, if you'd like me to elaborate more on a subject or two, please leave a comment at the bottom of this post. :-)

So, now that we are in the right mindset, let's move on to the 7 steps for financial health and healing. You sure you're ready?

1. Set goals that speak to your heart.
I think we all should know by now that in order for a person to really stick with anything, they must have a passion for it and a drive to do what needs to be done. Glinda addresses this directly. Think about your burning desire. It's not enough to say that you just want to save money or you just want to be debt free. Try and keep your goal visible throughout the day and formulate action steps to achieve it. You must be directed toward achieving balance in your life. Don't forget to create benchmarks in order to keep tabs on your progress. She also brings out examples of financial benchmarks for your twenties, thirties, forties, fifties, and sixties. Remember to establish a set of spiritual practices that put you in touch with your higher self. In other words, don't neglect God when trying to get your money straight. He's not going balance your checkbook for you of course lol but he can give you peace of mind on your financial journey.

2. Balance your checkbook and know your net worth.
In generations past, African Americans with limited education and resources feared the complexity of checking accounts and resorted early on to using money orders and paying cash. Other blacks may have had a checkbook in the past but become so frustrated with trying to maintain it properly that they gave up. Some blacks have had banks even give up on them! That sounds like a horrible background. That is why steps must be taken to get people educated and keep them educated (things change all the time in today's society) about money and their finances. One thing that Glinda says to always remember is you are not your net worth. What you make has nothing to do with how you live, love, help and communicate. Whatever you make now is only an assessment of your finances today. Not tomorrow, not forever. Keep in mind that some people with wealth and assets are very unhappy and unfulfilled. Some people have six-figure assets along with six-figure liabilities. These people actually have less net worth than a person with a $40,000 annual income!

3. Develop a spending plan.
I know, I know. It's easier said than done, right? I struggle with this all the time lol. But hey, we are all works in progress. Often black women are put off by budgets because we don't want any ceilings (no ceilings! lol) put on our spending. We tend to see a budget like someone telling us how to spend our money and we don't have time for that. The word budget almost always carries a negative connotation. So, that's why Ms. Bridgforth talks about developing a spending plan. A plan is always proactive and empowering. The purpose of creating one is to identify what we need for a quality of life that has a sense of balance and well-being. It's a blueprint to keep our financial house in order. In this book, Glinda shows an example of someone's actual spending plan and then encourages you to make one as well. In fact, she suggests that you make 3 spending plans: one identifying the least amount of money you can get by on during a month, one where you factor in an amortized amount in every category of spending, and one showing the ideal amount you would like to spend (without going too crazy) in each category.

4. Track and analyze your spending.
This is sort of self-explanatory. Glinda gives you some worksheets in this section in ordr to do just that. There are other tools you can use to record everything. These include calendars, organizers, palm pilots, receipts, envelopes, spiral notebooks, and checkbook registers. Make sure you get into the habit of asking for receipts everytime you spend money. Also, keep those receipts organized in envelopes to avoid clutter. One of the greatest benefits of tracking your spending over a long period of time is that you have a history to look back on. You may not realize exactly how much money you spend on food, for example, but with a tracking system you can make a conscious effort to make changes if needed.

5. Pay off debt with discipline - not deprivation.
Don't think of credit card limits as a balance to be drawn against but more like a loan that HAS to be repaid. Think of credit more like a liability than an asset. That should keep you out of the "spend now, worry later" mindset that so many (including myself) have fallen into. Credit is a necessary evil in the world today so it's best to use it to our advantage as a financial tool.  If you need to rebuild your credit, think about obtaining store or gasoline accounts, getting a secured credit card or taking out a secured personal loan to begin to get you back on the right track. Remember this is all after you've established firm goals as to why you want to get out of debt. DO NOT create any new, unnecessary debt. DO close extra charge accounts. DO use a debt or check card. DO NOT carry credit cards with you. DO NOT charge anything that will be gon eby the time the bill comes. I especially need to keep that in the forefront of my mind. DO NOT be seduced by special offers. For instance, airline miles are not worth it if you are paying finance charges each month because you carry over balances. DO shift debt to lower-interest-rate cards. DO communicate with creditors. DO make settlement offers to creditors. DO get support. We all need it.

6. Save consistently without being a miser.
Glinda points out that African Americans as a people are actually very familiar with the concept of savings. I know everyone has that one family member with a HUGE jar just full of coins lol. However, as author George Kraser said, knowledge is not power but acting on knowledge is power. So, how do you start saving money? Consider yourself a creditor. By thinking that way, you make sure that you pay yourself first. Also, sign up for payroll deduction with your employer. By having money automatically deducted before you see it, you are more likely to keep up with saving and you won't miss it too much. Be sure to set up an automatic transfer at the bank if you don't have your money deducted by your employer. Remember to save your spare change. Start a "serial savings" plan. I'm very familiar with this plan myself. I use to always save $5 bills that I had. Glinda suggests that everytime you break a large bill you check the serial numbers of the $1 bills. If one of them starts with your initial, save it. Deposit at least half of all gift money into savings. This is definitely something to keep in mind with the holidays coming up. Many receive gifts of money or get a bonus from their employer. It may be tempting but try to save that extra money! Last but not least, check your motives behind all of your spending. Assess if each purchase is for immediate gratification or long-term value.

7. Get the support and expert advice you need.
In the book The Dynamic Laws of Healing, Catherine Ponder writes: "If you have a problem, you have something to forgive. Anyone who experiences pain has a need to forgive. Anyone who finds himself in unpleasant circumstances has a need to forgive. Anyone who finds himself in debt has a need to forgive. Where there is suffering, unhappiness, lack, confusion or misery of any sort, there is a need to forgive....To forgive means to 'give for,' to 'replace' the ill feeling, to gain a sense of peace and harmony again. To forgive literally means to 'give up' that which you should not have held on to in the first place." It is very important to forgive others but it is MOST important to forgive ourselves. I think alot of people look over this fact.

Glinda ends her book with tips on how to build wealth and fund our dreams. She talks about how to create wealth through investments, investing for the long term, real estate, and entrepreneurship. Madam C. J. Walker (the first self-made female millionaire) once said, "I started out in the cotton fields. Then I was promoted to the washer tub. Then I was promoted to the cook kitchen. Then I promoted myself." We must promote ourselves to prosperity and wealth. Remember self-acceptance without judgment and criticism is essential.

Along with recanting her own personal financial journey, the book is filled with real life examples of women that Glinda has either helped or been inspired by. So, if you're tired of feeling powerless over your finances and are ready to start funding your dreams, come on girl! It's time to get your money straight!

~BB