Today: December 19 2018
38-year-old Liz Jendro works as a program manager in a large IT company and earns more than 100 thousand dollars a year. She is the only breadwinner in the family - her husband brings up their three sons. Liz leads the Chief Mom Officer blog. She shared her story and advice with the Business Insider on how to conduct financial affairs.
"At 16 I read the book" The Rich Barber "by David Chilton and she turned my world around, telling stories of a few friends who received valuable advice from a rich barber and his clients. From there, I learned about real estate, mortgages, taxes, pensions, investments , accumulation for study and many other things.This book prompted me to open a pension account, and at 20 I already bought my own apartment, started saving for my children's education and invested all free money.
Six years ago my husband nearly died of a septic shock and that time visually showed me that if it were not for my foresight, I do not know where I would be now and my family. For 20 years, I read a million books, magazines, articles and blogs on personal finance and that's what I understood from personal experience.
Many women believe that their husbands or partners should manage their budget, because "men are better at understanding money." However, according to statistics, female investors show better results than men.
Women live longer than men, almost half of marriages end in divorce. At some point in the life of 8 from 10, we will have to manage our money ourselves and therefore we need to be able to work with money, know where, where and why they leave. Where to begin?
To begin with it is worth to understand how much money you have. It's simple - from all that you have, take away how much you owe. Write down how much money you have and in what form.
Costs. This is not a budget, just analyze every month what money is spent on - what you spend, whether you invest in savings or savings accounts. Keep a record of your credit card and bank account costs.
Why do your money lie where they lie - why did you decide to invest in this way? Why do you have so many euros on your account, so much in savings and so much on pension contributions?
You should know the answers to all these questions, even if your husband is in charge of your budget. This knowledge is the beginning of an intelligent attitude to finance. Now we turn to dreams.
What are you dreaming about? Where do you want to go? Take time to think carefully about your dreams and desires. Do you want to retire early? Start your own business? Pay for the children's high school?
Without clarity in dreams and goals, it is impossible to get money to work for you. Aimless investment will not help you realize your desires. When you know what exactly you want, it will be easier for you to manage money.
A few years ago my husband nearly died after the operation and after that he could not work for a year. Our life has dramatically changed - the costs soared, revenues decreased and if not for insurance, tight belts and a "safety cushion", we would go bankrupt.
With people, everything happens and suddenly - nobody plans to lose the house because of a fire, get cancer, get into an accident, become an invalid. This can happen to each of us and least of all in such cases you want to think about money.
Start saving from the very first salary and will be relatively safe in case of job loss, health problems.
Soberly assess your current situation, to understand how it relates to your dreams.
If your money goes to things that do not bring you closer to your dream, but rather put it off, you better understand it now, and not in 10 years when it's too late.
If the round-the-world trip is more important for you than the latest smartphone or expensive clothes, then this should be reflected in your finances.
This may seem complicated, but it is necessary in order to ensure a minimum "airbag.
Read the relevant books, blogs, watch the video. Start with the basics, and more complex operations will not disappear anywhere.
The earlier you start, the more time you will have in order to save money.
Regularly monitor your finances and adjust their work. Every three months I analyze my finances, and write down my expenses and incomes every day. At the end of the month, I look through my notes, analyze them and make corrections for the next month, so as not to lose my way to my goals.
It is important not to make hasty decisions. The investment market is unstable and fluctuates every second, but changing its policy depending on each change is stupid.
If you want to open your business someday, and your husband does not want you to leave work, then you are unlikely to come to a consensus. The different attitude to money and their waste leads to divorce and courts. It is very important that your dreams and opinions on finances converge.
Together, check your financial status every month, every quarter and every year and honestly talk about how much progress meets your expectations and together decide how you can change the situation.
I always lacked a female example in terms of earning and managing money. Look for other women who pursue similar financial goals - together you can support each other, motivate and celebrate financial achievements.
In my youth, I did not know anyone with whom I could openly talk about money, then there were no social networks and the Internet. Now even in the instagram there is a #debtfreecommunity hashtag where people share tips and personal experience of getting out of debt, millions of financial blogs, websites and consultants who can help you.
It is impossible to achieve a dream overnight - sometimes it takes years and anyone who claims otherwise hunts your dreams. Usually these people want to enrich themselves at your expense and leave you with nothing. All competent people as one will tell you that this is a long way to go to realize your dream.
Much can lead us astray - sickness, death, accidents, unforeseen expenses - this is all part of life, for someone it is more difficult than for others. We can not control absolutely everything, but it is important to manage what is important for us, to be able to get up after unexpected events and go further.
If you surrender, you will never reach our dreams. And if you continue, then everything is possible.