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July 2010

Ladies: Put down your to-do lists, and no one will get hurt…

by Eleanor Blayney
July 24th, 2010

Like most women, I love to-do lists.  They give such a sense of control and focus.  The charge I get with crossing to-dos off the list is so great, that sometimes my first item is to make a list.  Check!

My problem, however, is that I can never find my lists.  They exist all over the place – on restaurant napkins, old envelopes, the back side of meeting notes, at the bottom of my purse, in my glove compartment, or beneath the perma-paper layer on my desk.

Lists are linear, and I am not a linear thinker.  My ideas tend to radiate outward from a single idea, sometimes disappearing into the ozone.  I’ve been accused of being just ever so slightly ADHD, but then my accuser didn’t get my creativity.  I liked it better when my book-publishing consultant, after insisting that I take some kind of personality profile so he would know how to work with me, called me a “shiny object” person.  As he explained,  “You are the type who picks up every shiny object you see.  Problem is, with every new object, you risk dropping the ones you already have.”

Clearly I need the discipline of lists, without sacrificing my creative flair to their linear tyranny.  So I have given a lot of thought to the ways lists can be made to work for busy multi-taskers (in other words, for most women).  Of the dozens of shiny ideas I came up with on this subject, I managed to hold on to the following:

  • Expand your list to include not just the urgent, but also the important.

Too often, our lists consist just of what we must do, right now.  These urgent items cannot be omitted:  if we don’t sign the permission slip for the field trip or get the oil changed, we risk the consequences of future breakdowns, whether of the emotional or the mechanical variety.

But step back from the daily grind for a minute and think about what is important to you.   Writing a book?  Taking a course?  Putting in a garden?  These are things that don’t necessarily need to be done NOW, but will nevertheless give you far more satisfaction when they are accomplished than the urgent stuff.

  • For your each of your “important” items, identify a first step that is manageable and can be done today.

Unfortunately the important things often never get done, because they are large, aspirational, and have no time constraints.  So decide on the very first, concrete step that must be taken on your way to accomplishing that important goal.  It may involve making a phone call, setting up an appointment with a professional, or staking out regular time on your calendar. Get the ball rolling today, and the momentum of that first step may propel you past your inertia.

  • Eliminate any and all items that don’t “belong” to you.

“What are you talking about?” you ask.  “If it’s on my list, of course it’s mine.”  Maybe not. Take a good critical look at your list, and see if there are any to-dos listed, not because you want or need to do them, but because you think you should.  Some obvious examples might be “Go on a diet” or “Put more into my 401(k)” or “Pay off my credit card.”   All these may be worthy actions to undertake, but until you can express and view them as something you desire, they are doomed to reappear on your lists forever, with little purpose except to make you feel bad. One way to transform these items is to ask of each one:  “Why?”  “Because I want to be healthy.  Because I want to be able to enjoy my retirement.  Because I want to be able to choose how I spend next month’s paycheck.”  Again, this is another way of enlarging your list, to give full berth to what you want to do and be.

  • Share your list.

One way to get things accomplished is to delegate – an activity that many women find difficult or awkward.  There may be items on your list that must be done or you want done, but there’s no to-do list law that says it has to be you who does them.  This is primarily applicable to the urgent items – who else can help you tick these things off?

But another way of sharing your list – particularly the important items – is to find a trusted friend, or circle of intimates, who are willing to help you — and those items on your list  –  get moving.  As incentive, there is nothing like having to be accountable to those who care about you.

You’ll note that this blog is virtually free, for once, of financial ideas and tips.  (They’re on a piece of paper somewhere, probably in my gym bag…)  But it is all about building your confidence and control – both necessary requisites for smart management of your money.

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Categories Financial Confidence, Personal Finance for Women
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Tell me the truth, do I look broke in this?

by Eleanor Blayney
July 15th, 2010

The similarities between budgeting and dieting are pretty obvious.  Both are decidedly female subjects, reliable ever-green topics for women’s talk shows and magazines.  Most men don’t obsess about these subjects, at least not in these terms.  They may profess interest in “personal financial strategies” or “regimens for getting ripped,” but rarely do they admit to the humbler, more prosaic activities of counting either pennies or calories.

Both budgeting and dieting are governed by very simple rules and have very simple solutions, which apparently few people ever follow or believe in.  If they did, the trillions of dollars spent on products and promises to get our waistlines slimmer and our bank accounts fatter could be redirected to something more socially redemptive – like curing cancer or eliminating world hunger.  Maybe it is our female aversion to math that is behind it all.  In the case of both budgets and diets, success comes when we take basic equations, and make them inequalities.  To get richer, take the $ inflow = $ outflow equation, and make it  an inequality:  $ inflow > $ outflow.  To get thinner, do the same thing with the calorie intake = calorie expenditure equation, but this time make the first term less than the second.  What could be simpler?

If you don’t do math, then try something just as easy:  write everything down.  Everything you eat, everything you spend – write it down.  It’s almost like the act of writing induces a caloric burn, on one hand, and stops the money burn in your pocket, on the other.  You eat less and save more,  just by putting pen to paper.

But there is at least one important difference between dieting and budgeting, or more precisely, between the underlying compulsions that drive us to them: namely overeating and overspending.  The difference has to do with visibility.  When I eat too much for too long, it shows.  It makes it harder for me to walk upstairs; it makes sharing a seat on the bus or fastening my seat belt on a plane a difficult and even embarrassing activity.  Not so when I overspend.  I move through the world quite easily – some would say too easily – even when I am overburdened by debt or unpaid bills.  It is almost impossible to know how much money people have or don’t have by the front they put to the world.  Millionaires drive used Fords, and destitute dames wear Prada.

Another difference – there is a now surgical solution for excessive weight that does not exist for excessive spending, even though both are clearly hazardous to your health.  Obese adults can now have gastric bypass surgery, which makes their stomachs smaller and limits the body’s ability to absorb food. If, after bypass surgery, you eat too much, you feel really sick.  Can you imagine a similar procedure for overspenders?   Something a surgeon might embed, maybe in your feet or fingers, that made it way too uncomfortable to shop at the mall or on the internet for more than a few minutes at a time.  If you did manage to spend too much anyway, you would find yourself regurgitating all that stuff you did not need and could not absorb, or rather, afford.

I have heard, however, that gastric bypass surgery does not work, if the person undergoing the procedure does not change her attitudes about food.  In other words, without revising  the way a person thinks about food, no adjustment of her digestive system is going to work in keeping the weight off. Undoubtedly, the same would be true of any mechanical solution to overspending.  Without really wanting what results from controlled spending, even a surgically-altered overspender would still pack on the debt.

I guess there is no avoiding it, when it comes to  overeating or overspending.  At the end of the day, they are simple struggles of mind over matter.  And until those afflicted really focus on what does matter – health, wellbeing, and physical and emotional freedom – no program of personal discipline has a chance of success, no matter how many times it is featured on Oprah.

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Categories Personal Finance for Women
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Circles Can Change the Conversation

by Eleanor Blayney
July 11th, 2010

We need to change the way we talk about finances with women. This is not a slight against our gender. I’m certainly not suggesting we lack the intelligence to comprehend personal finance. But women perceive and learn differently from men. In particular, research has shown that men prefer to learn independently, while women learn well in supportive, collaborative environments. Men are apt to charge ahead and learn while doing, whereas women prefer to stand back, listen, and observe. They want to read the manual, so to speak, before turning on the computer or launching the program.

The field of sociolinguistics, and more particularly, the work of Deborah Tannen, professor of linguistics at Georgetown University, shows that men are much more comfortable speaking in terms of “one-up” or “one-down.” They have an inherent need for competition and hierarchy in order to understand where they fit in the world. Women, on the other hand, are much more collaborative: they seek common experience and want to put themselves on the same emotional and intellectual plane as others.

The male need for hierarchy, for locating themselves in the pecking order, may explain why the language of personal finance—and most particularly that of investing, long dominated by men—is invariably put in terms of winning and losing. It may explain, too, why my male clients are more apt to evaluate investment performance in terms of benchmarks. They want to know if they have done better or worse than a given standard, such as the S&P 500 or the Dow, whereas female clients, when presented with investment results, are more apt to ask: “But what does this mean?” And they are not asking for that meaning to be measured in basis points.

Women are more contextual and less absolute than men. In my experience, they want the context for advice and find it easier when I preface my counsel, as I invariably do, with the phrase: “It depends.” It depends on your risk tolerance; it depends on your family situation; it depends on where you want to live.

My male clients are less patient with context and usually want more definitive, shorter answers. They want the bottom line. Men are the ones who, when asked by their wives or girlfriends if they look good in a certain dress, will simply answer “Sure” or “Nope.” Women know, of course, that the better answer begins with another question, such as: “What do you have to go with it?” or “Where do you plan to wear it?”

How can women’s preferences for commonality, context, and consensus be brought to bear on financial advice? The answer, I strongly believe, lies in circles, the process of women coming together with a common purpose. Throughout history, women have been attracted by the productive potential of circles. In colonial times, women gathered for sewing circles or quilting bees to assist in setting up the household of a couple about to be married or to have a child. Yesterday’s sewing circles and bees have evolved into today’s book clubs, recipe swaps, scrapbooking clubs, giving circles, and investment groups. The popularity of these groups among women is unquestioned and growing.

Learning about money in a community of women makes the work seem easier and even enjoyable. A circle setting where women come together to discuss the financial issues unique to them, such as living alone or coping with the negative financial consequences of divorce, is immensely empowering. It is also a safe place to discover one’s financial identity and to find answers to what women may fear are dumb questions. Through sharing and relating, women gain autonomy and knowledge to bridge the gap between their capacity and confidence.

Excerpted from Eleanor Blayney’s book Women’s Worth.

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Categories Financial Confidence, Women Invest
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