dollydo

This is written by Suze Orman and I believe worth a read.

Suze is on a one-woman-mission to help liberate women from their financial bondage and live the life of their dreams.
Think you can't get money smart? Think again! Suze breaks down the 5 essential steps to financial freedom. Get out your pen and paper ladies; your bank account is never going to look the same again!
Money is your paper ticket to freedom
Before you change your spending and saving habits it's essential you rethink what money really means. For many of us it might be a new car, a new pair of shoes or even a vacation. Suze offers a wake-up call: "Money is the freedom to LEAVE any situation that you no longer want to be in."
It could be an abusive relationship or simply an unfulfilling one. It could be a job that you don't want to stay in. No matter what aspect of your life, having money means you have the power to do what you want when you want. Excited? Let's get started…

Step 1: Take control
It's time to look inwardly instead of externally for your ticket to financial freedom. Stand tall and say out loud:

• I WANT to be the financial powerhouse I was MEANT to be
• I WANT to be the master of my own financial freedom.
• I WANT to be in control of my own life.
• The first step is taking responsibility for your financial destiny.

Step 2: Reality check!
It's time to start getting honest with your money; how much is REALLY coming in and how much is REALLY going out?

Suze says that from her experience most people come up between $1,000-$1,500 short each month. And while it's often confounding to look at the cold hard figures, it's only by doing a complete and honest audit of your current financial situation that you can begin your journey toward financial freedom.
Step 3: Debt = bondage
If you don't have financial freedom in your life, chances are you do have credit card debt. Suze warns us that debt is bondage and will always prevent you from achieving financial freedom. Before you start building your wealth or assets, it's essential you pay off your credit card debt as soon as possible. Start with paying off the debt that charges the highest interest rates first and funnel all of your extra income into getting yourself in the clear.

If you are tempted to use a credit card, try a pre-paid debit card . It works by pre-loading money from your own account, so you only ever spend what you have and never spend money you don't have.

Step 4: Protect your future
Most of us are so busy trying to make money in the moment, we don't think about our financial future or about protecting our loved ones. Suze recommends you have the following "must-have documents" in place:

• A will
• A living revocable trust
• An advance directive
• A durable power of attorney for healthcare

Step 5: You + me = three

When you're in a relationship, Suze says it's essential to have three accounts.
Two individual accounts -- since you came into the relationship as independent people with financial histories -- and a joint account for shared expenses.

If you and your partner's earnings are different, find a way to make the contribution to the joint account proportionate to your respective incomes.
Finally, don't put it off! There is no better time to start taking responsibility for your financial freedom. As my mother always says, "easy now, hard later" or "hard now, easy later"…the choice is yours.

dollydo

Yeah, that's me too...because of my mindset, not relying on another, I was able to retire and be comfortable in my retirement years. Took sacrifice, hard work and planning but I am now here and happy!

dollydo

I agree...interesting at best!

Heartbroken0608

Great post! I hope every woman on here reads this, especially step 5 for those in a relationship.

Ann

My father died when I was 6 years old and my mother worked at a good job, struggled to pay the bills but never ever went in debt and watching her inspired me to live within my means.

One lesson she taught me that I have never forgotten was "No matter who you marry or how good life gets, always make sure you can take care of yourself."

I have been married for 43 years to a good man who neither drinks or drugs (he liked a cocktail or two in his day but gave it up when he got diabetes years ago). I am financially secure...and I know that if he disappeared tomorrow I would be fine. We have always had joint accounts and investments because that worked for us. We both know how much money we have or don't have and don't spend it foolishly. We have fun, we spend money on silly things sometimes...but always what we can afford. We have both worked through the years and are each working part time now in semi-retirement and enjoy our winters in the south.

If I had words to give a child today (daughter or son) it would be those words my mother said to me, "No matter who you marry or how good life gets, always make sure you can take care of yourself."

Hugs

dollydo

"One lesson she taught me that I have never forgotten was "No matter who you marry or how good life gets, always make sure you can take care of yourself."

I certainly agree with that statement. My father always said "Pay yourself first"..if your
company offers a 401K invest in it and always put money into an IRA. The first year
an IRA was offered as a tax write off, I invested. Been doing that for over 25 yrs, never
touched a dime of either my 401Ks or IRAs...will start drawing down at 70 1/2.

LoveMeNow

I was always financially responsible and had excellent credit. (the top 5% of the country). My husband and I had our own business and it was very successful. I stepped back to care for my kids and mother...and when everything went down, I went down with it. I threw good money after bad to save what we had. Huge mistake!!

I knew better but I was in a FOG. I had sooo much anger with him and with myself for all that was happening. I can not allow myself to stay angry. I have to accept and learn from it. It's a good lesson for my daughter if she choses to learn from my mistakes.

I could easily work with him again and make far more money than I could somewhere else. This would solve many financial problems but it would be the worst thing for me. I know this and need to find my own job/career - no matter what the pay is. I need to work on my independence again and that is what I am doing.

I have met with a career adviser (a free service) - to help me with my resume. I have some difficulties applying on line because I don't have the 3 job histories, and references they demand. I need to be creative but I insist on being honest as well.

Oh, what an evil web we weave, when we get entangled in "their" disease.

cece1960

I have always practiced the your's, mine and our's system. I am now single but I still have three accounts: household, savings and spending. My bills and savings get paid first, and I can feel free to spend what is left over.

I am thankful that I developed a good head for finances, and I'm not willing to lose what I've worked very hard for. Sometimes I wonder if I ever want to "share" anything again, because in the past my "partner" always spent what he made and I was left saving for the bigger purchases. Live and learn.

JenT1968

I am thankful that I have always worked in paid employment, and do not have to rely on anyone else's contribution.

I have several pensions (employer contributed, final salary, rare as hen's teeth now), and a life insurance policy that will see the children provided for up to 21, but which is termed so that AXH can never see a penny of it.

My will needs sorting out, and I don't know what the other things mean (UK-based, so healthcare isn't an issue).

Financial independence = choices. Women fought long and hard to be able to have this option, and both my parent's instilled in me never to give that up.

cangel2

Coming to this post a bit later than everyone but being independent financially is the best feeling. I have had some momentary lapses but in general have always made it a point to keep my finances separate so that I knew what I had to rely on.

Suze Orman is great~ Good reminder that I wanted to go back and read some of her detailed advice.

And yes....paying yourself first is the best strategy and a great habit to get into.