MONEY MANAGEMENT STRATEGIES FOR WOMEN.

ANSWER THESE QUESTIONS TO DEVELOP A SOLID FINANCIAL PLAN

EVERY JANUARY 1, MY INTENTIONS WERE ALWAYS GOOD AS I MADE MY NEW YEAR'S resolutions. I'd focus on the new and improved Glinda that I wanted to become and would create a list of changes I wanted to make. I'm not alone. I'm sure many of you sisters join me in the annual ritual of making verbal promises and proclamations to seek healthy relationships, cut back on eating sweets, achieve the perfect weight, and the ever-popular pay off bills. But when the January start date gets reset to February and then February to March, we become discouraged and end up saying "just forget it." That's the closest some of us ever get to setting goals.

For the last decade or so, I've had a lot of explaining to do to friends in early January because I want to prepare them for the unusual behavior I'm likely to exhibit over the course of the month. During this period, I'm sure to be distracted, distant, and largely unavailable. (Thankfully, I now have the process whittled down from 30 days to two or three.) In actuality, what is taking place is the annual ritual of redesigning my life.

As I begin each year, I like to get quiet, go within, and reflect on what I want my life to look like for the next 12 months. I don't stop my financial-counseling practice, but I take care of only the most pressing commitments. I inform friends that I am available only in case of emergency, and I avoid anything that might distract me from the mindfulness of my annual goal-setting process.

Getting quiet to think about what's fundamentally important to me is a key part of creatively "designing my life." I actually visualize a blank canvas and begin to mentally paint a picture of how I want the upcoming year to look. I paint a lifestyle that is fun, exciting, and meets every wish my heart desires. In my mind's eye, I assess where I'm currently at and then take it up a notch or two to the next level. For example, on the professional side, I might visualize myself with an upgraded working wardrobe. So I'll see myself facilitating a seminar in a beautiful St. John knit suit--moving about the room interacting with attendees, looking good, feeling confident, and having fun. Or I might visualize having a car service pick me up at the airport instead of taking a shuttle or taxi to the hotel when I travel for pleasure, not just for business trips. Once I have the vision clarified, I set my goals.

Believe it or not, this visualization process helped me learn to make my goals a reality. Setting appropriate goals and then staying on track until you achieve them takes patience and discipline. It's a skill that every sister has to learn if we're going to get our money straight. Maybe you're already used to setting goals and meeting them. If so, good for you. But if you have trouble accomplishing the things you want in life--financial or otherwise--perhaps you need to rethink your goal-setting process. That way, you can make certain you aren't setting yourself up for failure before you actually get started. [See quiz, this article.]

How did you do? Hopefully, you answered all the questions correctly. Obviously, they weren't designed for you to need a Ph.D. to answer them. Instead, they were set up to be used as an outline, which will help you set goals that make your heart sing and get you started down the road to a peaceful relationship with your money.

From Girl, Get Your Money Straight! by Glinda Bridgforth, Copyright [C] 2000 by Glinda Bridgforth. Used by permission of Broadway Books, a division of Random House, Inc.

QUERY 1

1 WHAT'S YOUR BURNING DESIRE?

A critical part of a successful financial program is having a goal or objective that motivates and energizes you. It's not enough to just say "I want to be debt -free" or "I want to save money." Having a compelling reason why you want to become debt-free or a motivating goal for which you are saving money creates a burning desire that gives you the motivation to go forward when you get tired and frustrated or when you feel you're not progressing fast enough. And because you're a human being, you're destined to feel all of these things from time to time.

Some sisters put off dealing with finances until they're in a serious relationship and discussing marriage. With the engagement comes shame and guilt as they think, "Oh, God, now he'll find out rye got all these bills!" That's when they panic. My client, Florence, was admittedly an impulsive spender, but a new man in her life and a marriage proposal made her determined to wipe out her debt.

At the age of 26, Florence had traveled more in five years than most people do in a lifetime. In the beginning,, she was nervous about setting out on some of her global adventures to places like Sierra Leone, Costa Rica, and Hong Kong. A black woman traveling alone is a rarity. But Florence quickly got over her fear. "I've practically been around the world," she said. "I've learned so much about different cultures; I'd say it was worth every penny." Unfortunately. those pennies totaled in the millions. This young, single woman, who worked as a physical therapist earning $70,000 a year, had no savings and owed $31.000 on her car, $9.000 on her credit cards, $60,000 in student loans, and $70,000 in family loans.

Getting engaged prompted Florence to take a serious reality check. The early conversation about money with Russell. her fiance, called her attention to the frivolous spending patterns she had developed. She also realized that Russell, a divorced man with two children, was a good money manager. He had clean credit, minimal debt, was buying a home, and was saving for his kids' education.

Reluctant to disclose the specifics of her situation, Florence acknowledged to her fiance that she had more debt than she was comfortable with and she was determined to get her financial act together. She told me: "Russell offered to help me with my finances, but I'm not ready for him to see them yet. Plus, I don't think it would be good for our relationship for him to be monitoring my spending. I want him to be proud of me, so I have to get a handle on things first."

Florence set a goal to get rid of her $9,000 credit card debt within six months. She made two very conscious, specific decisions: There would be no personal travel expenses for the next six months and she'd no longer lend money to friends. Both of these choices would be difficult for her, since she loved to travel and found it hard to say no to people close to her. But Florence was in love with Russell and felt she had found her soul mate, so there was strong motivation to stick to the plan. She also changed other financial behaviors. Florence cut her impulse spending to a minimum, began making her loan payments on time, and applied unexpected money from bonuses and monetary gifts directly to her debt.

I also recommended that Florence explore exchanging her luxury car for a more moderately priced one. She really loved driving her Mercedes and was reluctant to accept that suggestion, but she did look into having her bank refinance the car at a lower interest rate. Unfortunately, because of her poor credit history, the bank declined the request. This decline became another highly motivating factor for Florence, since she didn't want Russell to know that her credit history affected their future purchases.

It's been only three months, but Florence's credit card debt is down to $5,000 and she's feeling very proud of herself. She's also gotten a part-time job on weekends that could pay as much as $500 per day, so she should have no problem reaching her goal. "At first it felt overwhelming to think about getting rid of all my debt. But now that I'm close to paying off the credit cards, I know I can use the same strategy to work on the other debts one by one. That way, my new life with Russell won't be weighed down by my financial baggage."

Money troubles are one of the leading causes of divorce in this country, so by working to get her finances in order, Florence can help to give her upcoming marriage a better than average chance of success. Her new healthy money habits will give her and Russell an even greater opportunity for financial harmony and marital bliss. That certainly speaks to her heart, don't you think?

QUERY 2

2 DO YOU KEEP YOUR GOAL VISIBLE THROUGHOUT THE DAY AND FORMULATE ACTION STEPS TO ACHIEVE IT?

Soon after Dr. Dennis Kimbro published his national bestseller, Think and Grow Rich: A Black Choice. I had an opportunity to hear him speak. I remember being entertained by his speech and impressed with him personally. He was very down-to-earth, easy to relate to, and had a great story full of challenging life experiences. With determination and perseverance, he overcame his obstacles, and his eventual success provided a basis for the strategies he shared with us that day. But I recall leaving the auditorium and saying to myself, "That was great, but he really didn't say anything I didn't already know. Everyday I teach those same principles to my clients."

The next day I looked back over the few notes I had scribbled down on the seminar program and was reminded of two points that he made regarding goals. First, he had asked. "When you wake up in the morning and open your eyes, do you see your goals? If I were to go to your home and look in the mirror over the sink where you brush your teeth, would I see your goals? If I were to drive your car, would I see your goals? If I were to sit behind the desk where you spend eight to 10 hours a day, would I see your goals?" Second, he said, "If you haven't achieved your goals yet, it's probably because they aren't clearly defined and visible." Obviously, this thought struck me at the time he said it, otherwise I wouldn't have written it down. But it really struck me as I reread it the next day. I thought, "Gee, goals are a key part of my financial program, and we always put them in writing. But even my goals are written in a notebook and are only occasionally looked at. Maybe I should make them more visible."

We all need to clarify our goals and make them visible for consistent reinforcement. Following that seminar, I took a large poster board and created [a] Goal Worksheet. After completing the chart, I placed it on my bedroom wall, where it was the first thing I'd see in the morning. Over the next couple of days, I became increasingly goal driven, and I started taking the action steps I had outlined on the chart. I made some telephone calls and was amazed at how quickly things started to happen in my business. By day three, phone calls were coming in with opportunities that weren't even directly related to the calls I had made, but were nonetheless things I wanted to do to grow my business. One of the incoming calls resulted in my first national appearance on a television talk show! By getting clear on my goals, putting them in writing and taking action, I had demonstrated to the universe that I was ready for some things to happen, and the universe responded appropriately.

Having a clear vision of what you want is critical, but it is not the end-all solution to making your dreams come true....

QUERY 3

3 ARE YOU DIRECTED TOWARD ACHIEVING BALANCE IN YOUR LIFE?

Vivian is one of my very best and oldest girlfriends. Maybe I should say she's a longtime friend, because she never hesitates to tell people that I'm the oldest--never mind it's by only four days. Vivian and I share a mutual admiration; she admires my professional accomplishments and I admire her personal accomplishment--she's been married to a wonderful man for 10 years and is mother to three dogs and two cats. Vivian's incredible devoted husband emotionally, spiritually, and financially supports, encourages, and champions every idea and every interest she's either imagined or endeavored. Granted, she has had great success in her life, such as going back to school at age 40-something to earn her undergraduate and graduate degrees, while I have had some incredibly wonderful personal relationships. But the degree to which each of us has become accomplished and achieved our success is based on the focus, energy, and priority we placed on our life goals--mine were professional and hers were personal.

To have a successful financial life, you can't focus on your personal goals or your professional goals. Both areas need attention. And although it may seem counterintuitive, you can't focus just on making money. Even if you have lots of money, voids in other areas of your life will likely cause you to spend excessively--trying to fall the holes and alter the uncomfortable feelings--so the vicious cycle will continue. In order to be balanced and fulfilled, you must create and accomplish goals in all areas of your life.

In One Day My Soul Just Opened Up, author Iyanla Vanzant describes the word "balance" as "a state of being in proportion, one thing to another--to arrange so that one set of elements equals another." She goes on to say that balance in life means you should: "Rest. Work. Play. Go. Speak. Listen. Cry a little. Understand more. Pray a lot. Rejoice even more." So I like to further categorize goals using a simple format. As you are thinking about the life that you want, set personal goals in the following areas: financial, emotional, spiritual, intellectual, and physical. When you think about your professional goals, pinpoint them using the following categories: position, income, benefits, education, and location. You'll be surprised at how these different areas of your life can profoundly affect your financial well-being.

QUERY 4

4 HAVE YOU ESTABLISHED APPROPRIATE BENCHMARKS TO JUDGE YOUR PROGRESS?

Back in 1981, while still an assistant manager in the banking industry and long before I had an inkling of starting the Bridgforth Financial Management Group, I happened to be interviewed for an article in BLACK ENTERPRISE entitled "Ms. Money Manager." Although only age 29, I confidently chatted with the interviewer about my plans to retire by age 45. At the time, I was involved in the multilevel marketing company with my then husband and felt that it, not banking, would be my vehicle to the good life. My network marketing business associates and I had a strong desire for financial independence. But even with a good vehicle and our tremendous enthusiasm, it didn't happen. I realize now it was likely never going to happen because I had no strategic business plan, no specific action steps, and no benchmarks for interim assessment. I had just enthusiasm and dreams.

Naturally, everybody is different and individual goals and dreams necessitate different benchmarks. However, there are some general guidelines that all sisters can use to make sure they're on the road to a healthy financial life. Use the following financial benchmarks to assess what you've accomplished to date and pinpoint what you can strive for in the future:

In Your 20s

* Work toward saving 10% of your income for all your future goals.

* Save up for vacations and major purchases in interest-bearing accounts instead of getting into the buy now, pay-later habit using credit cards.

* Don't be seduced by the "no payments and no interest for 12 months" selling technique.

* Maintain an emergency fund of at least $500 in savings at all times.

* Start a 401(k) plan or IRA and make the maximum contribution allowable.

* Save for a down payment on a home.

In Your 30s

* Keep no more than two credit card accounts; pay off your balances every month.

* Build up your emergency fund to cover three to six months' living expenses.

* Make maximum contributions to a 401(k) or IRA.

* Buy a house, co-op, or condo; if you buy a house, consider a duplex for rental income.

* Start a mutual fund account using dollar-cost averaging to your advantage. (Dollar-cost averaging is the principle that investing equal amounts each month earns more in the long run than investing a lump sum at the end of the year.)

* Meet with a financial planner to develop a long-range investment strategy for your retirement plan.

* Increase your knowledge about the stock market by joining an investment club.

In Your 40s

* Increase monthly investment contributions as your income grows and according to the long-term investment strategy you've worked out with a professional.

* Consider starting your own business; discuss opening a self-employment retirement plan such as a Keogh or Simplified Employee Pension Plan with your financial adviser.

* Buy a home if you haven't already; open a home-equity line of credit for extraordinary expenses. (Unlike personal credit card interest is usually tax deductible.)

* Buy real state property you can rent to earn income.

* Investigate and purchase insurance for aging parents' long-term care.

In Your 50s

* Decide when you want to retire and plan how you will enjoy your financial freedom

* Meet with a financial adviser to review investment strategies and asset allocation.

* Decide when you want to switch emphasis from growing your assets to conserving them.

* If you're considering early retirement, you might want to pay off your mortgage first.

* If you continue to work and earn a high income for a number of years, you may want to keep your mortgage for the tax write-off.

* Investigate and purchase insurance for long-term care in your own old age.

In Your 60s

* Explore options to retire or not.

* Manage cash flow to make sure retirement funds outlast retirement.

* Have fun and enjoy a new, exciting chapter in your book of life.

Quiz Answers

b, c, a, b, c, d

Use these financial benchmarks as a guide when you begin the "design your life" process of setting annual goals. Of course, you'll need to tailor some of these to your current situation and map out action steps to reach the different objectives. But consistently referring to these benchmarks will keep you moving forward. And after a lifetime of hard work, you'll be able to retire in comfort and style.

RELATED ARTICLE: QUIZ

The following multiple-choice quiz will help your determine if your goal-setting procedures doom you to failure or destine you for success. Pick one response to complete each sentence:

1 It's important to have a reason why you want to accomplish a goal because:

a. Your mother always said you'd better have a good excuse for what you do.

b. A reason will help you stay disciplined and motivated to accomplish the goal.

c. Your mentor suggested it.

2 You know you have chosen the right goal if:

a. Your coworker tells you so.

b. It's the "in" thing you read about in a magazine.

c. It's a burning desire and it speaks to your heart.

3 Each goal you select should be:

a. Clearly defined and measurable, with action steps and a target date.

b. Something you have always wanted.

c. Discussed at length with your sisterfriends.

4 To have balance in your overall life plan, you should:

a. Delegate as much as possible.

b. Create personal and professional goals.

c. Make sure your family tells you what they need from you.

5 Establishing financial benchmarks for each decade helps you:

a. Determine how badly to beat yourself up if you miss a goal.

b. Aim higher than you ordinarily do.

c. Plan your lifetime needs and determine how early you may want to retire.

6 Adding elements like prayer and meditation to your lifestyle can help you:

a. Express gratitude for your blessings.

b. Maintain perspective on the source of your good fortune.

c. Alleviate paralyzing fear when financial challenges occur.

d. All of the above.

Look for the answers at the end of this article.