Socialize your financial goals

If there’s one topic I’m passionate about, it’s personal finance.
I tend to be very open about this topic and over the years many of my friends will buy me a coffee for some quick advice. Over the last month, I noticed some interesting observations from meeting with a dozen or so ladies:
  • All said they didn’t have a clear goal for savings and future investing (ie: I’m saving money, but don’t have a strategy or plan for investing)
  • All said they were not comfortable talking about personal finances (ie: I’m not seeing an advisor and I wouldn’t talk about it in a group setting)
  • Most said they keep 100% of their take-home pay ($100K+ annually) in just a checking account and standard savings account (Really?! That means no interest or compounding benefits)
Given that this is purely a personal qualitative study talking to friends who work in tech and live in San Francisco, I did some research and found my qualitative findings weren’t too far off…

Sallie Krawcheck, CEO of Ellevest, shared some great findings in Refinery29.
  • About half (51%) of women report feeling positive about their financial futures
  • 42% of women say they are confident they are making the right savings and investment decisions
  • Of all the assets controlled by women, 71% are held in cash — a.k.a. not invested.
In addition to Sallie’s work, a number of studies attribute the gender savings and investing gap to lack of confidence. Only 47 percent of women feel confident when talking about finances with a financial professional—compared to 77 percent who would be comfortable discussing medical issues with their doctor.
If women are afraid to share with financial professionals, then we’re definitely not discussing savings or investing in social settings.

From my coffee date surveys, it wasn’t easy talking about this stuff at all.
But by the end of the conversation, all agreed that it was one of the most productive coffees they had all year. I’ll be the first to admit that socializing your goals is a really scary thing, but it’s the only way to build community and accountability.
So, here’s my story and some helpful tools curated from friends and mentors:
When I started a business in Australia in 2013, “the money stuff” was the one thing that scared me most.  As a first time entrepreneur, I didn’t want to take outside funding to ensure I had complete control of the business and the flexibility to exit whenever I was ready to move back to America.
I self-funded the business, which forced me to get really good with numbers.
As a self-proclaimed “words nerd,” I loved doing just about anything but activities involving the numbers. This forced me to seek out the best professional help and self-help programs to get the business running smoothly. Within in a week, I had a fancy financial advisor (who thankfully didn’t charge his usual fees and gave me way too much of his time for free) and enrolled in 10thousand girl.
As part of 10thousand girl, I joined a GIG group (Girl Investment Group).
Think: local book club, but we talk about personal finance, investing and goals
Outcomes from the group included: creating life plan, budget, day-to-day money management, increasing saving levels and understanding investing.
While all of these things you can learn on your own, I found it was much easier to do this in a group setting and hold each other accountable. If any or all of these things sound interesting, there’s also an online version which works too.

Once you set clear financial goals, there are a number of free tools to help you smash them.
Not to mention, most of these are new (launched in 2016) and free in the App Store:
  • Penny: Your personal finance coach
    • Penny will categorize your spending and text you updates
      • Food (and coffee and cocktails)
      • Transportation (hello, Uber)
      • Bills (rent, internet, etc.)
      • Other purchases such as groceries (Amazon)
      • Income
  • Digit: The app that’ll save for you
    • Automate your savings
    • Every few days, Digit checks your spending habits and saves a few dollars from your checking account if you can afford it
    • You can then transfer the savings back to our bank account (hint: vacation funds, etc.)
  • Truebill: Find, track and cancel your subscriptions
    • This app is a lifesaver… period. Comcast, Netflix, Rent the Runway, all in one place.
    • It pulls all monthly subscriptions, which is particularly helpful if you sign up for any “first month free” services
    • Plus, the average Truebill user saves $512 per year
  • Read Ellevest’s Seven Chapters on Financial Feminism 
 As we head into 2017, I hope to apply the same process to other aspects of my life as well.
Socializing goals is scary, but from my personal experience it’s the only way to really stay consistent. Would love to hear your thoughts and tools you’re using!

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