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Financial Advice for Women: Some Tips for Successful Financial Planning

Every woman has a chance at financial freedom; here are a few tips.

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Every woman has a chance at financial freedom; here's a little advice.

“Business would be easy if it weren’t for people.” I say this jokingly, but an important part of reaching your goals for financial freedom is to be clear from the forefront what resources are available to you, and how to rely on them—and yourself—in a way that guarantees your success.

Find the right partners for success.

The first step is to find the right partners to help you. Good partners can help you move forward quickly, increase your financial education, and be ready for opportunities when they become available. On the other hand, bad partners can cause significant hardship, setbacks and stress. As Robert says, “You can’t do a good deal with a bad partner,” so….

Good financial advice comes from good partners

My number one partner in everything – investing, business, marriage, play – is Robert. We don’t always agree on everything, but that’s what makes us great partners. A good partnership allows space for each partner to state their mind, give their opinions and question the other partner’s ideas. It’s a give and take situation.

As I talk about in “It’s Rising Time!,” there are several things I look for in business partnerships:

  • Do I enjoy being around this person? Good partners want to work together so that everyone prospers. They should have aligned values and be generous. When doing a deal, you work closely with your partners so it’s important to me that I enjoy being around them.

If I don’t want to go out to dinner with these people, why would I want them as partners?

  • Can I buy this person’s services elsewhere? My 91-year-old mentor, Frank, shared this advice with me: “Never give equity to a person whose services you can buy in the marketplace.”

For example, if a friend wants a part of your asset by exchanging services for it (being your property manager, doing your accounting, offering consulting services, etc.), make sure you are not losing out on the deal. If your friend is providing services you can get elsewhere or just needs money (see the bullet point above), look elsewhere for a partner.

You can always hire an outside service to manage your property, handle your accounting and run your marketing. And this way, you get the services you need while holding on to 100% of your asset.

  • Are we aligned in values? This goes back to my first bullet. Frank also explained to me that if your partner just wants to put money in her pocket, then she’s going to focus only on that goal. She doesn’t care about the partnership and the goals of the partnership as a whole. And why would you want to have a partner like that?

Who are your partners going to be?

As the U.S. Small Business Administration states, “Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business. Because partnerships entail more than one person in the decision-making process, it’s important to discuss a wide variety of issues up front and develop a legal partnership agreement.”

Before moving forward with a partnership, it’s important to take the time to think about your goals, the people you are considering and what they bring to the table. After all, good partners can help you reach your goals of financial freedom faster. But if you jump into a partnership without carefully considering the consequences, a good deal can go bad fast!

Want better financial advice? Do your own research

Let's say you are thinking about investing in real estate. You've heard from some people that it is the best type of investment. Others tell you it is way too risky. Who do you believe? No one - do your own investigation, talk to people who are doing the type of investing you are considering and ask them about the pros and cons. This way you are getting a balanced perspective and can make a choice that works for you. As you learn, you may find yourself getting more excited about this type of investment and feel that the pros outweigh the cons. Or you may find that the more you learn the more you feel this isn't the right type of investment for you. Either decision is fine - it's important to choose something that fits with who you are.

Any time you are faced with an important decision, don't let an emotional reaction to the advice of others make the choice for you. Look at all the facts and be honest with yourself about what you really want and what you're willing to go through to get it. Sometimes you will decide not to go through with something because it's not worth it to you or not right for your situation, and that's fine. The important thing is that you considered all the facts and made a conscious decision.

Don’t React; You Have the Power to Choose

That brings me to the importance of choosing, versus reacting. We all make decisions every day, large and small. When you react and make a decision based on emotion or instinct, then it is those emotions and instincts that are in control. When you pause to think through your options, the possible consequences, and make a choice based on facts as well as intuition, you are in control.

When emotion goes up, intelligence goes down, so times of high emotional stress are not good times to make decisions. You don't have to disregard your emotions completely, you just want to make sure you've considered all the angles and possible consequences before deciding on a course of action.

Life throws us curve balls all the time, and we have to decide how to respond. When this happens, are you simply reacting to the situation, or making a conscious choice?

For additional resources to help you on your journey to financial freedom, check out our free, financial education community here.

And to teach your children about entrepreneurship and financial education, check out Robert’s new book, “ Why ‘A’ Students Work for ‘C’ Students ” here.

 

Original publish date: April 18, 2013

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