Archives for July 2015

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We often draw a blank when we hear financial terms such as interest, 401(k) and money markets. We scramble to Google these terms but still may not be  able to clarify exactly what it all means. Below are 10 common financial terms and how they may apply to your life.

1. Money Market Accounts (MMA): These are accounts similar to your typical savings accounts at banks; however, there are two key differences. Money Market Accounts typically require larger daily minimum balances (usually anywhere from $1,000 to $2,500, although some online banks are removing the minimum deposit requirement) and they pay more interest (usually an average of about 1.0% APY). MMAs are a good option for those looking to minimize financial risk (as opposed to stocks and bonds).
2. Interest vs. Interest Rate:  Interest is the amount it is going to cost you to borrow money. Interest rate is described as the percentage paid for the use of the loan. Interest rates may be variable or fixed and are typically higher on riskier loans.
3. 401(k) Plan: This is the most common retirement account, provided by an employer. Money is deducted from your paycheck pre-tax, therefore lowering your taxable income (that’s a good thing!). Another great benefit is employer matching. This is when employers match what you are contributing (usually up to a certain percentage or dollar amount); it’s basically free money!
4. Stock: This represents ownership in a corporation and part of its earnings. To name a few, the benefits to owning stock are: growing your money (provided the company is doing well) and the ability to defer paying your taxes.
5. Bond: Bonds are another form of a loan; it is money leant from an investor to a government or corporate entity. Yes, the government and corporations borrow money too! Bonds are a good investment opportunity because they are a bit safer than stocks. If a company were to go bankrupt, creditors (issuers of bonds) are paid before those who hold stock.
6. Premium: This term may sound a lot more complicated than it really is. Simply put, premiums are the price that a bond or stock sells above its issue price.
7. Equity: This is the value of ownership or the value of the shares in a company.
8. Secured vs. Unsecured Loans: These two terms are commonly misunderstood, especially when it comes to student loans. Secured loans require the lender to put up something of value against the loan; if the loan is not paid, the lender has the option to use that item to satisfy your debt. A secured loan gives the lender security. An unsecured loan is just the opposite; nothing of value is needed to obtain a loan. Student loans, as well as credit cards, are unsecured loans.
9. Refinancing: Sometimes a borrower may have a loan with such high fees and interest rates; A new loan is then taken out to pay the old one, essentially with lower fees and interest.
10. Short-term vs. Long-term Investments: There are many types of investments. Short-term investments are great for financial goals set for two years or less, such as money market accounts. Long-term investments typically carry a longer maturity date, such as retirement accounts.

What are some difficult financial terms you’ve had to research?

[vc_row][vc_column][dt_fancy_title title=”www.civit.it” title_align=”left” title_size=”small”][vc_column_text]The number of women starting their own business is growing at an astounding rate with no chance of slowing down. The opportunity and desire for female entrepreneurs across many fields have not been absent of challenges; as expected. Embarking in male dominated industries like technology and engineering to the consultant life of branding, social media and marketing, can present some difficulties in terms of reaching the level of success that is deemed worthy.

In our careers, especially those of us that are small business owners and bosses, it is important to understand that it’s OK to demand the fee that you deserve. Consulting fees are tricky in that you have to narrow down the number that makes sense for the industry that you are in, your expertise and quality of work experience. Your rate or fee can also establish your respect “on the street” and create a reputation for you that can bring in more business.

Here are some points to consider when deciding what you and your company are worth:

1.  Knowing Your Business:

Understanding the effort, work product and customer base of your business is key when trying to solidify a fee. Ask yourself: What are my customers looking for?; What type of work do they need (proposal, social media presence, presentation, etc.)?; and How much time and resources would be needed for a typical project and/or task? These will help you narrow down what may be reasonable based on your field and geographic location.

2.  Freelance / Consultant Fee Types:

• Hourly – Entrepreneur.com tells us that “To figure out an appropriate hourly rate, you can either use a source like the Careers in Business website to see what consultants earn in your area, or decide how much you’d like to earn in a year and do the math to turn that figure into an hourly rate.”
• Project – Typically, entrepreneurs work on a project by project basis which includes a set schedule of completion with milestones with a given budget. If this type of fee is chosen, you and the client should negotiate a fixed fee based on the effort needed, length of project and/or your work history. If you are just starting out, expect this fixed rate to be a little lower than your counterpart; do not get discouraged as this experience will build up your resume.
• Retainer basis – Certain occupations such as attorney, event planner and/or interior designer have a set monthly fee which allows them to be available to work for the client at will during the agreed upon timeframe. As a consultant, many clients may need your expertise at random points throughout their business activities and this method may make it easier to secure your time.

Check out Consultant Journal models and fee calculator to jot down your financial worth as an entrepreneur across these types!

3.  Having the Conversation

As a consultant/entrepreneur, any discussions that deal with payment, contract and agreements should always be face to face initially. This can set the stage for a great relationship. Before you meet your clients, you should already have a pretty good idea of what type of services you can and will provide and the type of rate you have chosen. Conversations with your client will iron out the details. The conversation should allow you to be firm in your demands, realistic with the work you can produce and gain a level of respect that will travel to the potential next client.

Talking, asking and negotiating your fee is tough because it’s essentially an awkward conversation. To avoid this inevitable feeling, do some homework beforehand. Negotiations may be necessary and once done so, follow up with something in writing so that everyone remains on the same page. Don’t be afraid to demand what you deserve; your fee should increase over time as you gain more experience and build out your client base. People will pay for quality work especially from fearless Womeneurs™ they trust![/vc_column_text][/vc_column][/vc_row]

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Being financially sound is more than just earning, saving and properly managing your money. There are additional aspects to consider when it comes to thinking about monetary matters. Here are the basics to becoming the financially wise woman you were destined to be:

• Saving is more than stashing your money in a shoebox:

​Of course, it’s great to have a savings account through a bank, however, there are many ways for you to save what you earn while earning interest. Sites such as mint.com and nerdwallet.com are great online tools for searching for interest-yielding savings accounts such as online savings accounts, CDs and money market accounts.

• Investing is also a key part of financial growth:

​The thought of investing makes some women’s heads spin but if done properly it can be very lucrative. Once you have satisfied all of your financial obligations, determine if you have any extra or discretionary funds left over. If you do, it is wise to look into investing. Some investment options are: real estate, mutual funds and ETFs, to name a few. Saving for retirement is also a crucial part of investing. Some employers offer 401(k) plans or plans such as IRAs are options you can open up at anytime without the assistance of an employer.

• Doing research will ensure that you are finding what’s best for you:

Doing research is key when it comes to money matters. Whether it’s reading finance books, articles or attending seminars/classes, it is wise to not only familiarize yourself  with these topics but become well educated. This will allow you to see that money is just a tool and not something to be afraid of.

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Personal brand, reputation, expertise, and experience are the terms that have evolved over time when evaluating a person and what they bring to the table in their career and what they can contribute.  These words also reflect how someone would determine whether or not you qualify for a specific job or role.  At a time where social media essentially helps the world go around, your personal brand is key.

Simply put, branding is how you present yourself to others.  If you want to grow professionally, whether it be as an employee or an entrepreneur, personal branding is essential because it allows you to stand out in a crowded marketplace.  Most importantly, personal branding allows you to control how you are perceived by others.  Whether you’re interacting with someone online or in person, a strong personal brand will help you make a memorable and positive impression.

Your personal brand is not just exclusive to your online presence, but to your offline presence as well.  After all, in order to be successful, networking and being able to communicate with people are keys components that contribute to others entrusting their ability to work with you and value your expertise.

There are several factors that should be considered in not only developing your personal brand but expressing it for others to see.  Your brand should be authentically who you are, what you value and what you seek to accomplish.

While there are many ways to present your personal brand, these key elements should get you started:

Elevator Pitch

Your elevator pitch is the most succinct way to communicate your purpose, your talents and the mark you want to leave on the world.  We are at a time when audiences have very limited attention span, therefore it is important that you are exude confidence and you can get to the point when speaking to a prospective employer or customer as to why you are the best fit.

Online Presence

It is no secret that a person who is going to invest in either a future employee or business, will use Google to research whether or not they are qualified and a person with whom they would want to work with.  With that said, your online presence should not only allude to your qualifications and expertise, but give an indication as to the type of person you are.

Does your online presence show you to be a person of integrity or someone who does not act in a respectable manner?  If you are an entrepreneur, does your online presence match the business you offer?  For example, if you are a health and fitness trainer, we should expect to see elements of healthy eating and exercise within your social media post and you living the life that you want others to believe.  While there is the element of work-life balance, it is perfectly fine to post your tasteful vacation pictures or enjoying your time with friends.

Additionally, anyone who wants to have a meaningful career, should have a LinkedIn profile that outlines your experience and goals.  Your profile can also be used as a tool to network with others in your current field or desired field.  This tool can also be used to post subject matter that falls in line with your expertise or interact in discussions that can ultimately illustrate your expertise and contribute to building your network.

Networking

There are so many ways to network and meet with like minded professionals.  Some of these include workshops, national conferences and other local events such as meetups.  These opportunities not only allow you to meet and form connections with potential partners, but you are able to continue to learn about your particular industry as well as project to others your commitment to your career.

Your personal brand allows people to trust that you are someone that they would want to work with professionally and that you have knowledge of your field.  It should be ever evolving, but staying true to who you are and the values you possess as you grow professionally will always be important.

There is nothing more invigorating than knowing your financial blueprint.  Knowing where you stand financially is a powerful first step in removing debt, increasing your credit score, investing in your future self and most importantly, it’s the first step towards piece of mind.   For many people looking at their credit report is like pulling teeth and people are often scared of what they may uncover.  I’m here to share how knowing the details of your credit report is personal power.

Earlier this month, I shared how viewing your finances and creating a budget is a necessary step in order to see how you spend your money.  Once you have a budget in place, the next thing to do is print out your credit report from all three agencies Equifax, Experian and Transunion.  What you may not know is thateveryone is allowed one annual free credit report, which includes your fico score.  Are you sure you know where to go and what to look for once you have your report?  Here are a few things to look out for while reading over your report:

Where to find your credit report:

1. Are you a credit card user? If so, many creditors charge their users a small monthly fee for credit alerts, which advises  when there’s fraudulent activity on your card.  Often your credit card statement will highlight this charge from a third party company.  What they don’t tell you is that this monthly fee also allow you access to their website and obtain your credit report and analysis profile for no additional cost.
2. CreditReport.com, CreditKarma.com, MyFico.com and FreeCreditScore.com are all reputable third party credit agencies that provide through credit analysis, debt repayment calculators and your fico score.
3. Go straight to the bureau for your score.  Your fico score is a combination of reporting to all three agencies, so why not go straight to their sites and obtain your report.  Find them at Equifax.com, Experian.com and Transunion.com

Your reputation is like a credit score.  Everything you do can affect it -Michelle Parson

Now that you have your credit score and you know where you stand financially.  Use this helpful diagramCredit Score & Fico Score Guide 101 to see what are your next action steps to establishing the financial future you can be proud of.  It’s surely not too late to make a change. By printing out your score you have already transformed your fear into action.  Can’t wait to see you guys back next month so we can continue the journey of securing a financially sound future!