No Limits Ladies.com

One of the most common New Year's resolutions is to lose weight. That means eating less and exercising more.

Since I'm all about synergies, I thought… how can you and I make a bit of spare cash from something we'll do anyway (i.e. exercise)?

Examples are all around me.

My hubby loves to play volleyball and being an alpha, he happily organizes volleyball leagues and tournaments. He rents the gym, buys or borrows the equipment, markets the events and collects money from the participants. He very often collects more than he needs to recoup the costs. Since my hubby does it for fun (and exercise), he returns the money (or has a party at the end or buys better prizes) but I bet a professional organizer could simply scoop the cash and nobody would mind.

Other ideas?

If you got really good, you could lead classes in whatever fitness activity you're interested in. One of my sisters taught aquafit for a while. She trimmed down her waistline and fattened up her bank account.

During high school, I'd walk dogs in the morning. That was a great workout, especially with the larger dogs (where they walked me instead of the other way around).

After reading that great article on Extreme Retirement (I love that, sounds like an extreme sport), I started thinking… why is it that some people can retire early and some people work at a job they hate until they’re pushed out the door?

I think it comes down to the basic principal of keeping your eye on your ball rather than everyone else’s. People who do their own thing… well… they do their own thing. They start businesses. They invest when all their buddies are spending. They buy free falling ice stocks (ouch). They turn the tv off to write another blog post.

As one of the extreme retirement couples, the Kaderli’s, state on their site RetireEarlyLifestyle.com

“Social pressure to spend can be subtle and pervasive, and it can divert you from your commitment to retire early. Marketing specialists tell you that if you only buy this new product, car, house, or membership, your lifestyle will improve. It's reasonably easy to tune out that marketing message, but you have to handle your friends with a little more tact. Trying to match the spending of our peer group is a surefire way to derail financial goals. Decide now that you don't have to keep up with their consumption to fit into the crowd. The choice is yours -- not theirs.”

Social pressure not only diverts you from your plan to retire early but any unique-to-you plan.

If you want to make a mark, do something different with your life, you need to accept that you will be different.

(This is written also as a reminder to self going into the New Years party season. When I get asked what I do and have to think about the answer.)

There was a discussion on one of the financial boards I visit about hiring a personal assistant. 'Course the do-it-yourself'ers say no, save the money. But what I noticed was that none of them were wealthy. The high net worth folks are saying your time is valuable, your time is limited, protect the time you have.

I have to admit that although I'm the self-dubbed Queen of Delegation, I don't delegate enough. My biggest problem is getting involved in projects that are none of my blasted business. It is the alpha in me. When I see something that should be done with no one to do it, I head up the project. Sure, I delegate all the tasks but the managing of that project still takes time.

So my big goal for the new year is to concentrate on core projects. I'm going to track the extra projects that I pick up. Write them down. Doesn't matter if these projects are one time or on going, I'm going to try to limit them. It'll be difficult with the book launch in May as I'll be mixing with a new bunch of people, making new connections, but I have to guard the time I have.

If you don't have enough hours in the day (who does?) and are still dragging your feet about delegating, check out Penelope Trunk's 7 Ways To Be A Better Delegator.

Talked to a buddy yesterday and he said that he’s selling a bunch of his stocks for tax reasons.

Yikes. Hold on, wait a minute.

I’m sure he meant to say because the stocks were duds, weren’t going to get any better, and at least he could take the capital loss to offset against any gains.

Well… at least I hope that’s what he meant.

Sure, I can see why the average investor would be tempted to dump their dog stocks. All the hype on the financial sites and tv channels and even the radio recommend to do so (which is why I’m once again buying).

But it often doesn’t make sense. If you expect the stock to rebound, then selling it now simply to lock in tax savings could end up costing you (in lost profits, not to mention the transaction fees).

Remember that you don’t get the ENTIRE loss back, you only get your tax rate’s percentage of the loss. No loss is better than loss with tax savings any day.

Suze Orman (now don’t groan, she does have some great tips, won’t make you a millionaire but still…) has some other tax tips to offer.

Being the day it is, I thought about what I could give my fellow No Limits Ladies. Porsches were out of the question (plus they're not very roomy, nah, you wouldn't like them). The hubby suggested new flat screen monitors (he would as he wants one himself) but that isn't in the budget either (unless someone buys a new house via the Amazon links).

Seriously, one of the things I love to do is give people examples of different ways to live. Not because I advise they follow these examples (everyone is different) but because it opens up opportunities. You don’t know what you don’t know.

And one possibility is extreme early retirement. We’re talking retirement in our 30’s, 40’s or 50’s.

Bankrate has an excellent article on two sets of retirees and their very different routes to early retirement. Neither had what I would consider a large nest egg when retiring. No millions of dollars. One couple had $500,000 (but I’m unsure as to whether that included real estate) and the other had $270,000 (not including any real estate). Yet they were able to retire and live the lives they wanted.

‘Course when you have that level of investments, frugality plays a big part in your lifestyle (one reason we have Frugal Fridays here on NoLimitsLadies). Every penny counts. But is it all sacrifice? Nope. One couple travels constantly, having seen countries many working people only dream of.

If I could do it all again (being semi retired myself), would I follow their same paths? No. Both couples live in low cost areas while I’m a city girl. Plus I’m a bit of a princess (I like my hotel rooms when traveling). But it does get me thinking… and I hope it gets you thinking too.

Thinking that hey, these couples got the lives they really wanted. They didn't wait. They didn't put it off until tomorrow. Through some focused financial management, they got it now.

And you can too.

For singles, New Year’s Eve can be a stressful time. Everyone is paired up to watch the countdown (or going to one of those popular group toddler parties if they have kids). Sure, there are some parties especially for singles but those can be a little intense.

One of my female buddies has the answer.

She works it.

You see, every restaurant, hotel, party room, spare nook, in the city is booked. That means the management needs staff, more staff than they regularly hire. This staff is difficult to find (lots of competition) so the wages are usually higher.

Oh, and management is more willing to overlook lack of experience. They’ll train for that special night. The people they train, they are more likely to call back in the future.

There is even more upside. Many of the other worker bees are single (a good mixing opportunity). Oh, and she often meets the celebs entertaining the crowds.

Plus management treats the staff especially well that day. She’s had free meals before her one day only gig.

How to find these opps? The classifieds, Craig’s List or simply ask a venue you’re interested in working if they’re hiring.

In a perfect world, you would give your loved ones the ideal gift. They would love it, cherish it, and keep it forever.

This is not a perfect world.

Sweaters are too big (hopefully! Cross my fingers and close my mouth!). iPods are in wrong colors (when the only choice was white, it was a lot easier). Parts are missing (I once gave someone one of those 3D puzzles and half the pieces were missing).

So what to do?

Gift receipts are the best. I usually attach them to the gift so the loved one can privately return the present (my taste is definitely not everyone’s which is why those Christmas sweaters exist). I do this immediately upon purchase (before I lose it). I also highlight the return policy (written on the bill).

If I don’t get a gift receipt, I tend to pay with cash (as many stores will only refund to the original credit card). I photocopy the receipt, give the loved one the original and keep my copy.

I also keep the other receipts in a separate folder (actually I have one of those great accordion type files with the flap closure that I use for my receipts so it lets me divide them into sections).

Obviously the care I take with my receipts increases with the value of the present. I don’t keep receipts for cash purchases at the dollar store (unless I can deduct them).

After yesterday’s post on working with weakness, I thought about goal setting and how we often wait until New Years to set new goals, to recap the past year, to dream.

I think that’s too late.

You see this time of year is especially tough on goals (financial, health, family, you name it). In the rush, rush, rush, we forget about what is truly important to us and to the people we love. I'm always tempted to buy just one more gift, spend a little bit more money, give more.

But in doing so, my loved ones don’t get what they truly want. What is that? They want to be happy and they want me to be happy also. Me being stressed out and grumpy about eating that extra chocolate truffle (which was SO good, I feel the need to add) isn’t making either of us happy. My dear spendaholic Mom putting herself in massive debt to have a lot of presents under the tree isn’t making anybody (except for the retailers) happy either.

Sticking to your goals, protecting your dreams isn’t selfish. It is the best thing you can do for the people you care about. It puts you in that warm place where you can freely love them.

So take five minutes. Close your eyes. Think of what you truly want, what your loved ones would love to get you for the holidays. And then move towards that goal.

We’re fast approaching the new year, a time when many of us think about change. Maybe we want to invest more or spend less or lose weight or build a management team for our now solopreneur business or…

Phillip J. Eby, author of You, Version 2.0, has a great post on change (his topic is cleaning, yuck, but the tips could be applied to any change).

He says to change, you need to do three things…
Focus on changing your actions, not your circumstances
Accept and plan for your weaknesses, instead of toughing it out
and
Periodically review your results to fine-tune or re-think your approach if needed

I love the second tip about accepting and planning for your weakness. I think this is where most people fail.

When I first started investing, I knew that I had a terrible memory. Any process that I put in place would have to work with that memory. I couldn’t wait until the end of the month and invest that percent of my paycheck because I’d forget about it , spending it all.

So I use the pay it yourself first method. Once the money is out of my bank account, I forget about it. I no longer hanker to spend it.

I work with a financial advisor because like many entrepreneurs I get these “brilliant” ideas that I want to take immediate action on. Having an advisor forces me to pause and think through any purchases or sales.

Putting those two processes in place was much easier that trying to better my memory (been trying to do that for thirty years and no luck) or stem the flood of “brilliant” ideas.

One of my favorite chapters in Carmine Gallo's new book Fire Them Up! is the one on optimism. Why is optimism important?

Carmine's quote from Robert Noyce, the cofounder of Intel and co-inventor of the computer chip, sums it up perfectly.

"Optimism is an essential ingredient of innovation. How else can the individual welcome change over security, adventure over staying in safe places?"

Not only is it an essential ingredient in innovation but it is in business start ups, investing, and life. One of my former v-p's told me that if I wasn't excited about the project, why the h*** should he be?

So much of being and staying optimistic has to do with yourself. Carmine outlines five steps for developing optimistic habits.

They are

1) Build upon your strengths. Strengths are areas of confidence. It is easier to be optimistic when you're working in areas of confidence.

2) Radiate optimism. I am know for walking into the office in the morning and giving everyone a cheerful good morning. It didn't matter how bad the person's day was, they would give me a good morning back. And they would smile. Optimism is contagious. Pass it on.

3) Speak highly of yourself, especially when talking to yourself! Buddies tease me because I always say that I'm the "best" in certain areas. Okay, I know I'm not the best but I've noticed that if I stake that claim, I strive to be better. Eventually I will be the best.

4) Surround yourself with builders, not detractors. Notice that Carmine uses the word builders, not cheerleaders. You don't need everyone to be a raving fan but you do need everyone to share your vision for a better product, better you, better world.

and

5) Create magnificient obsessions. Dream big. Think big. I've lived long enough to know that anything is possible so that big dream is possible for you. Then obsess about it. Live, eat, dream it.

Now optimism isn't the same as being happy, happy, happy all the time. It isn't the same as being unrealistic. Optimism is the belief that things are going to get better, that change is possible, that you can accomplish what you wish to do.

For more on optimism, check out Carmine Gallo's new book Fire Them Up! A great add to that gift list.

A common hostess gift during the holidays is the platter of home-made cookies. Of course, the tray looks more impressive with a variety of cookies but who has the time to make a dozen types of cookies?

Not me, that’s for certain.

So what some enterprising women do is organize a cookie exchange. They send out invitations to friends and family, instructing everyone to bring one type of cookie to the party. Then, at the party, the cookies are swapped until everyone has a great assortment.

A woman I know takes it one step further. Yes, she does the baking (vast quantities) but then she invites very busy businesswomen and other professionals. These women can still make up their own trays with their preference of cookies. However, instead of contributing their own, they pay for the cookie trays.

The baker has her own trays to give out plus extra cash for the holidays.

Oh, no, all this talk of cookies… still fighting the good fight against weight gain (unfortunately all the weight that I’ve lost is off my top which is NOT my problem area).

We’re reaching the home stretch of the holiday season and I don’t know about you, but I’m full. Not full of shopping (I finished that by my December 1st deadline) but full as in my poor stomach is taxed to the max.

And that’s not good (especially as I’m reducing).

Since most of my buddies are busy business guys and gals (and I haven’t gone home yet), my overeating is due to restaurant dinners. The portions are SO BIG (like the restaurants take my Mom’s force-feeding tactics to heart).

So what have I been doing?

Making tv dinners (remember those? Those hungry man dinners in the cute little containers with all the food divided up, just the way I like it… I do not like my food to touch). I then freeze them for those hectic January days.

That means some forward thinking. I tend to order food that freezes well (staying away from potatoes as they turn out like mushy starch balls). Rice and pasta dishes normally are a breeze.

I order the regular meal and then ask the waiter right away to split it into two, packing one half up (no temptation). If I’m lucky, they’ll put them in those plastic takeaway dishes that I can simply pop right in the freezer and then reuse.

This tactic also works if friends and family are cooking. When they try to force one more piece of cheesecake (which freezes like a dream and might even be nicer half frozen) on me, I say “No thanks, I’m stuffed”, smile and then add “but if there are any left overs…” Leaving that comment hanging. Often at the end of the night, I have a goodie bag to go.

Saves money, time and best of all my waistline.

When people talk about fear of debt, they often refer to the Great Depression, a time when families lost their homes because they couldn’t pay the mortgage.

A tough period of history but the Great Depression was kiddie stuff compared to the Regency times.

Michele Ann Young, author of No Regrets, a romp of a Regency romance (and with a sexy plus sized heroine! Yes! A real woman!) has a great blog post series on debt and prisons. You read that right. Not only did you lose everything but you got put in prison for doing so.

Oh, and you PAID for your stay in prison (very ironic since you got thrown in jail for having no money). The more you paid, the better the treatment. Couldn’t pay anything? Then you got the worst treatment, often resulting in death (jail-fever). Big incentive for families to scrounge up the funds. Brings new definition to dead-beat relatives.

Why the harsh treatment? Because debt was considered theft (which it is, if you think about it, theft from your creditors) and treated very similarly. Very seriously.

Although modern day me doesn’t avoid debt (especially for investment purposes), I do have a healthy respect for it. Being pressured to make payments you can’t afford can still curtail freedoms today.

It used to be an annual post holiday tradition in our family. My Mom (wonderful woman, not the best money manager in the world) would spend, spend, spend during the holiday season and then from December 26th onward dread the soon-to-be received credit card statement. She would worry and fret and hope that the bill wouldn’t be too high (she never said anything to us kids but we felt the stress all the same).

(Note: Hope is not the best financial strategy.)

Why did she hope? Because she had no clue. It is so easy to lose track of spending with credit cards because the process is… well… easy. One swipe and the transaction is done.

So make it a tad more difficult. Take an extra minute and record the purchase in the checkbook or blackberry just as you would if you had written out a check. If you carry a running total (which I recommend that you do), then you’ll see right away whether you can afford the purchase or not.

What about those monthly charges? The cable bill or insurance policy that is charged automatically? Deduct those right away (as you would any preauthorized payments from your bank account).

What if you’re putting a group meal on your credit card and collecting the cash from your tablemates? Record all of the bill. Odds are, the cash will be spent by the time you get your credit card statement.

Tracking your credit card spending daily may not make that big bill less painful (though I’ll bet you’d spend less) but it will decrease the worry (necessary or not).

At NoLimitsLadies, we are always pleased to welcome new sites to the Personal Finance Blogosphere.

One such site is Financial Fashion House, a site combining two of my faves, fashion and finance (what can I say? I love to shop. Doesn't matter the market, whether its Wallstreet or the Magnificent Mile).

I virtually sat down with Financial Fashion House's founder Cinnamon McCann to talk about her new site.

Why Fashion and Finance?

"Fashion is a universal theme for women. The good, bad, and ugly, fashion has a way of showing our true colors: moods, attitude, personality, and spirit. The objective of Financial Fashion House (FFH) is to provide a trendy and exciting environment where women can obtain financial education and resources. FFH is dedicated to teaching women financial responsibility in a fun way based on “inspiration, laughter, creativity and hope”. We combine the dry and intimidating subject matter of finance, with the fun and frivolity of fashion, enabling the ability to convey powerful information to women in a non-threatening way."

Who is your ideal reader?

"We target women of all financial savvy levels. We are targeting women that are just starting out to the women who has been investing in the stock market for years."

If you could give only one piece of advice, what would it be?

"Most important advice to readers is that no one is going to care more about your financial state than you. So it is critical to do your homework and ask questions."

True... true...
For more insights (and fashion tips), head over to Financial Fashion House.

I’ve had questions about why I’ve never covered blogging in More Money Mondays. There are a two big reasons why…

I don’t personally make much money blogging (nothing from this site and about 8 cents a day from my travel blog) so I’m not exactly an expert (there are better sources for this information such as Problogger.net). I don’t blog for the money (obviously).

And

I honestly don’t know that many people who make much money strictly from their blogs (i.e. not including consulting work that they might or might not have gotten by having an active blog).

Turns out… that isn’t that unusual.

Darren at Problogger held his annual survey of what his readers (typically “serious” bloggers including folks with multiple blogs and blog networks) earn. 49% of bloggers who tried actively to make money earned less than $100 a month.

Does this mean that you won’t make big money blogging? Of course not. 51% of bloggers made more than $100 a month (which could buy more than a few shares of that quickly nearing zero mining stock I’m holding).

Other perks of blogging include freebies (free books), networking (I meet more people online than I do off), oh, and of course the pure love of sharing knowledge and writing. Those, especially the sharing of knowledge bit, can more than make up for any lack of income.

When the hubby and I travel, we pick up cute (and often free) little knick knacks wherever we go. Souvenirs like beads when we went to New Orleans, poker chips from Vegas, a clay Tiare flower from Tahiti. No, we’re not filling our house with this stuff (the dusting alone would drive me mad). Instead we use them as tree ornaments.

Sure we could buy ornaments that are all matchy-matchy (and cost a lot like those Hallmark ornaments) but these items hold more meaning, more memories (than even those packaged Hallmark memories). I touch the beads and remember that first taste of gumbo or the music on Bourbon Street. I flip the poker chip between fingers and remember strolling hand and hand down the faux streets in the Paris Hotel. I can almost feel the sun on my face when I spot that Tahitian flower.

We smile whenever we put up the tree (which is NOT every year, I’m a very lazy person unfortunately) and we smile when we take it back down again. Plus we are often asked about our interesting tree and have a story for every ornament.

What if you don’t travel?

A friend of mine saves one special item each year from her kids’ activities and makes that into an ornament. Maybe it is running a festive ribbon through an eyelet of outgrown baby bootie or attaching a hook to the wheel of a forgotten favorite matchbox car. It gives her extra pleasure knowing that when her children set up their own trees (years from now), they’ll be starting out with a piece of home.

Babson College has completed their annual study of woman-run businesses in Massachusetts. The results are interesting but not surprising.

Female CEO’s are in it for the long term. They’ve been in their positions an average of 14 years. They have an average of 29 years professional experience.

What does that mean? It took an average of 15 years to get to the corner office and many of them had to “buy” their way there by either founding the company or buying big chunks of ownership. “More than 95 percent are privately held and approximately 80 percent of the CEOs hold controlling ownership.”

I’m not too surprised about that. When I was working my way up the corporate ladder, many of us thought and more than one male mentor told us that it could be less frustrating to start up our own companies. No old boys club to constantly butt heads with. Some stuck it out in corporate. Some took that thinking and started their own companies.

Just about every industry is covered in the study but the leading industry is professional services at 38%. Not surprisingly, the key to success is relationship based (which is the key to success in most professional services businesses). And that might explain why the average female CEO in the study (95% of them) had a college degree.

I hear arguments for and against teaching money basics at school. Some parents believe that they should be teaching junior how to write a check. All fine and good… if that’s what was actually happening.

According to a survey by Charles Schwab, only 51% of teens know how to write a check. That means that 49% don’t (I understand, my hubby before marrying me had never written a check before). Only 34% know how to balance a check book (29% are in debt, coincidence? I don’t think so). 13% know what a 401k is.

Now, you’re thinking… I asked my daughter and she said that she knew all about this “stuff.” Yes, well, so did 63% of these same teens yet only 26% percent know how credit card interest and fees work. I’d assume that they don’t know. That’s the safer call.

How to teach a teen without them raising a fuss (putting on the iPod and stomping off)? My mentors (the neighbors with the Bernese Mountain Dog) would include me in their household finance discussions. I was intrigued because money was (and still is) one of those taboo topics (teens may be private about their own doings but can be quite nosy about others).

It must have taken a lot of guts on their part, to open up their financial life to a rocker kid in the madhouse next door. They took the chance that I'd tell most of our small town about their finances (I didn't because I figured it was a secret and I liked knowing something no one else did). But it made all the difference in my life. I went from knowing nothing (or worse, knowing incorrect things) to having a solid base in personal finance.

One of the most common questions I get is “is the stock market or real estate market or Pez dispenser market at the bottom?” Folks wanting to get the absolute rock bottom price on their buys.

I’m the wrong person to ask.

I’ve never, ever bought anything at its lowest price. It is pretty much guaranteed that the day after I buy a stock, the price drops like a lead balloon (resisting a made in China lead balloon joke). One of my buddies asks me what I’m buying so he can go out and short a stock. That’s how good I am at picking the bottom.

There are two lessons from this. One is that just because a person is a good investor doesn’t mean she’s good at every aspect of investing. The other is that you don’t have to buy at the bottom to do well at investing.

Lucky for me.

What I do is look for bargains by my own definition (using book value, 10 year discounted cash flow, and then adjusting for any changes in profitability I think will happen). When the company stock is good value, I buy. If the price drops and nothing fundamentally has changed, I buy more.

But, I also get asked, if the price drops, doesn’t that mean there’s something wrong with the stock?

Perhaps. Or it could be, in the case of my little ice company, that the investors don’t want what the management wants. My ice company has a healthy yield so many of the investors hold the stock for income. When the company does something “crazy” like buy up more ice companies (so they can capture cost savings and have more control over pricing), the investors get upset. They’d rather be paid out the money and the price drops (for a couple days). Me? I bought it for growth. I’m lovin’ that the company is gradually cornering the ice market. So when the price drops, I buy more.

One of my buddies is a big movies buff. She likes to watch every type of movie out there and could easily blow 100% of the take home from her 9-5 job on tickets.

But she doesn’t.

Why? Because when her neighborhood movie theater advertised that they needed ushers, she applied. The pay isn’t great, minimum wage to start, but that wasn’t why she took the gig. You see, the job comes with one big perk… free movies.

Any time that she’s not working, she can watch movies for free (with some restrictions, like not going to that Blockbuster movie the Friday night of its opening weekend). So by working a few nights a week at the theater (and getting paid which compensates for her perma-smelling like popcorn), she can watch movies the rest of the week for free.

She also volunteers to work during film fests and special events. As a result, she know just about every media person in town and has also met an impressive array of Directors, Producers, Actors and other movie folk (her autograph book is a movie lover’s dream).

BTW… she claims that usher is one of the cushiest jobs at the theater (working the concession stand is a bit stressful).