Money for the Rest of Us

Ask the Advisor put together a list of 17 Important Financial Tips for Women.  It’s a great comprehensive list.

The one tip I would add is “Take Care of Yourself.”  So many women get married or have a partner that they believe they can count on for the rest of their lives.  The sad truth is far too many marriages end in divorce.  It is crucial that every woman have her own savings and retirement funds, so if something should ever happen, you can take care of yourself.

We’ve all heard about the gender pay gap– women earn anywhere from 65 cents to 75 cents to men’s $1. But that’s certainly couldn’t be true for our generation– twentysomethings right out of college. There’s no way we can be earning less than men our age at our exact same jobs, is there?

Apparently, there is. According to a recent study by the American Association of University Women women just one year out of college earn only 80 percent as much as males. (That’s 80 cents to the dollar.)

“Wait, wait” you say, “women work lower paying jobs in lower paying fields.”

Yes, this is true, but even accounting for that, women still earn less than men:

In education, a female-dominated major, women earn 95 percent as much as their male colleagues earn. In biological sciences, a mixed-gender major, women earn only 75 percent as much as men earn. Likewise in mathematics—a male- dominated major—women earn only 76 percent as much as men earn.

It seems that no matter what field you choose, as a woman, (on average) you will earn less than your male counterparts.

Say what you want, but discrimination exists. And unfortunately, as these numbers reveal, we are not about to see the end of it anytime soon.
You can read the CNN article about the study here. And you can download the full report here.

What do you do if you’re salary is lower than others in your field and/or company? How do you ask for a raise if you’ve been putting up with a low pay for a long time?

I’ve been readings Suze Orman’s new book Women and Money and came across and interesting quote last night. She was talking about how women usually aren’t good about asking for raises and getting the pay they deserve. It’s especially difficult when you take a lower pay to begin with or don’t demand a higher raise and then you’re stuck. Once you’ve got that lower salary it’s hard to know how to ask for a significant pay increase.

Well, here’s what Suze suggests you say:

“I realize that I have allowed myself to be unfairly compensated in the past, but now I’d like to correct that and be paid in a way that matches both industry standards and my division’s profitability.”

(If you work for a non-profit you should probably adjust the last part of the sentence to something like “… my division’s productivity.”)

I think this is a great line because you are being upfront and stating the facts in an “I statement.” Rather than saying “you unfairly compensated me,” you say “I allowed myself to be unfairly compensated.” Similar statements, but they are received in completely different ways.

Think about using this line if you are currently being unfairly compensated .

It happens to nearly everyone, your wallet gets lost or stolen and you panic. Where do you begin and what do you do? Addressing the problem of a stolen wallet can seem overwhelming, but if you follow the three steps below, you should be well on your way to a having new wallet with new cards with as minimal hassle as possible.

First, however, a caveat: You should report the wallet as lost or stolen as quickly as possible. The longer you wait the more difficult the situation will become.

1. Call your credit card companies and banks. For each credit card or ATM card in your wallet, call the issuer and report the item as lost or stolen. Most banks and credit card companies are very friendly about this and will help you through the process of canceling the card, getting a new one, and reporting any fraudulent charges that may have already occurred. You’ll have to answer a number of questions and may even have to fax in some other proof of identity (like a utility bill), but it all depends on the issuer. Also, if you need cash instantly many banks will allow you to take a certain amount out (usually around $200) if you go to the local branch and speak with someone.
   Think about what other cards were in your wallet. Call your department of motor vehicles, insurance companies and any other company whose card you might have had in your wallet. Though uncommon, it’s possible that the finder/thief will go to the movie store and check out (and never return) several movies or video games in your name.
2. Call one the three credit bureaus. Call either Equifax, Experian, or TransUnion. You can ask them to issue a fraud or security alert that is either temporary or permanent. This alert will not deny you any credit, nor will it affect your credit score. It will only force any companies requesting credit to further verify your identity before issuing credit. You only have to report to one of the credit monitoring bureaus as they are required to share information with the other two.
3. File a police report. This can be the biggest hassle because it requires that you go to the local station and fill out some paper work. Filing the police report may be required by credit card companies or banks if there have already been fraudulent charges.

If you take these three steps as quickly as possible usually you can get new credit cards and ATM cards within a few days and the entire issue can get cleared up within a month.

Extra tip: It’s a good idea to always leave one credit card or ATM card at home. You don’t need to be carrying all cards at all times; and that way, if your wallet gets lost or stolen you will still have another form of payment.

Suze Orman has an interesting post up about the “8 Qualities of a Wealthy Woman.”   These are qualities like “beauty,” “happiness,” and “cleanliness.”  It’s going to take me a little while to digest these as I’m not totally sure how I feel about them.  But take a look and let me know what you think.

“…That means I’ve got less than a week to figure out some high-profit, low-commitment, under-the-table moneymaking schemes that require little to no skill. Looks like hustling is now my full-time job.”

This is the teaser that begins an article in the February issue of Jane Magazine. Quite the title and teaser, huh? Naturally I was hooked: if this magazine journalist can make an extra $1,000 in 5 days to buy some extra parts for her prized car, then naturally I should be able to do it to.

Let’s review how she earns $1,000 in 5 days (with the amount of time it took in parentheses):

1. Sends mass email to her friends and family “who have more money than time” and offers to do pretty much anything short of “whoring [her]self.”
2. Sells stuff on ebay for a 25% cut. By the end of the week this nets her $100+ (which she says averages to about $2.50/hour for the time she spent on it)
3. Dog-sitting = $40 (1 hour)
4. Cosmetics test= $120 (has to go back 3 times - several hours)
5. Sells cookies, brownies, lemon cake, and pumpkin bread at work = $60 (3 hours selling, much longer baking)
6. $15 Babysitting (an hour)
7. $50 transcribing an interview found on Craigslist
8. $50 picking her parents up at the airport
9. $315 = Delivers Ikea furniture (unclear to whom; one person is a friend’s cousin); (took most of a day)
10. $45 from two homemade lasagnas to friends who don’t cook (she charged $60, but the ingredients were $15) (time unspecified)
11. $10 from “being the butt of their amusement” — a bet on how long it will take her to get drunk at an all-you-can drink beer festival (during free time)
12. $80 in cash from selling clothes back to a secondhand store
13. Sets up “the adult equivalent of a lemonade stand at work” $2/ cup cider spiked with applejack brandy; unclear how much that netted
14. $120 Sells t-shirts for $20 to football tailgaters

This article makes for an interesting story, but that’s about it. I wouldn’t recommend trying any of these schemes as a way to make a $1000. Selling clothes back to a thrift store is the only one that seems practical. And looking for quick jobs on Craigslist (like transcribing) could work too. The other ways she got money just wouldn’t fly. I’m not sure how my work would feel if I showed up with cookies to sell. And I do know how they would feel if I showed up with cider liquor—they would show me the door—permanently. I guess those are the joys of working at a magazine. You can spend your work day trying to make an extra buck and still get paid your normal salary since it is work for a “story.”

I think the biggest lesson to learn from this story is that even if you can earn an extra $1000 in 5 days, it’s not easy. The author said that she worked over 100 hours to earn this money. That’s $10/hour. It just goes to show that the only way to “get rich” is hard work, lots of sweat, and a good sense of humor.

If you happen to see a Jane magazine while waiting in line at the store, the article is worth a quick read. Like most Jane articles it’s sarcastic, bitter, entertaining, and still a little informative.

I recently got the book Rich Woman by Kim Kiyosaki. I haven’t started reading it yet, but I’m looking forward to reading and will post my comments on this site. prlinkbiz at No Limits Ladies has started a discussion forum for “Rich Woman” and has posted her first comments about the introduction today. I encourage others will pick up a copy of the book and follow along.