It's that time of year where most of us take stock and think about what we want in life.  And, more often than not, money seems to be the killjoy that throws cold water on our hopes, dreams and desires. "If I only had more money, I could...." While it might seem like financial success is about how much money we have, I'm convinced that it's really about how well we align our money with our intentions, goals and values.
 
Here's a basic financial check-in that you only have to do once a year, and I guarantee that knowing what you want and getting a handle on where you stand with your money will pay better dividends than any hot stock tip:
 
1. Set authentic, realistic goals - Figure out what you want to achieve personally and financially in the coming year and commit to the goals in writing.
 
2. Check in on your net worth - Pull out your recent property assessment, your year-end bank account, investment, mortgage and loan statements and make two columns.  Write down and add up what you own (assets) in one column and what you owe (debts) in the other.  The difference between the two is your net worth and your financial starting point for the year.
 
3. Create a spending and savings plan - Tally up what you expect to earn after tax and deductions (your cash inflows) and what you expect to save and spend next year (cash outflows).  If your expenses (cash outflows) exceed your income (cash inflows), then do whatever you can to change your spending plans - and ignore all the hype about investments, no matter how enticing the pitch sounds until you have a strong financial foundation in place.
 
Check out our WFLC worksheets to help you with your annual financial check-in. Or better yet, register for one of our upcoming courses Build Your Own Financial Plan or Sheila's Debt-Free Challenge and make 2009 the year you finally take financial control.

 

At an investing workshop a few weeks ago, I asked the group of about 40 professional women how many of them fully understood what they were invested in.  Shockingly, only 3 people raised their hand which meant that over 90% of the women in the room had little or no knowlege of how their money was invested.  I was reminded once again of how intimidating the investment world is for most women and this reality is the inspiration for an investor education series that I will be running over the next few months in this column.  Each month I will explain and demystify the most common investments that you will likely encounter so you will develop a greater understanding of terms like mutual funds, stocks, bonds, index funds and GICs.  
 
For those of you who have completed the Build Your Own Financial Plan program or one of basic investing courses, you can use the column as a refresher and, if you would like to deepen your understanding of investments, check out the MoneyMastery program that I will be starting in mid February. 
 
If you are in the majority of women who don't understand what they're invested in, make 2009 the year that you change your relationship with money.  Pick up the phone right now and book a meeting with your bank or advisor.  Bring your latest investment statement to the meeting and ask them to explain, in layman's terms, what you're invested in.  Don't worry about bothering them, remember this is your money and you have a right to know where your money is going.   
 
Changing your relationship to money won't happen overnight and does require a commitment to being open to learning an unfamiliar language and acquiring new skills.  You don't have to become an expert, but if you're not on top of your money, who is?
 
To learn more about what's happening in the markets now and what to do with your investments, check out our upcoming teleclass with investment expert Tracy Theemes.

Managing your Investments in Turbulent Times - Teleclass
Get the information and advice you need to navigate these turbulent times with financial confidence and investment smarts!
 
Sheila's Debt-Free Challenge - Classes in Vancouver

Why spend one more day wondering when you will ever get out of debt?
                                         
Build Your Own Financial Plan - Free Preview Teleclass
Dial in to this free preview teleclass to learn how to make smart financial decisions and to see if the Build Your Own Financial Plan program is for you.
 
Build Your Own Financial Plan - 3 month Teleclass program
If you're tired of worrying about your finances and ready to take control, this program is for you.
 
MoneyMastery Program - Ongoing telecoaching and education
Become a more confident and savvy investor so you can achieve your financial goals faster and with more ease.
 
Investing Basics for Women - Class offered through UBC

Learn the fundamentals of investing and figure out how to invest your money wisely.
 
Retirement Planning: New Realities, New Possibilities - Class offered through UBC
Does the thought of retirement bring your more anxiety than joy? Do you wonder if you'll ever have enough money to retire comfortably? Or maybe you can't ever imagine retiring completely, but want this to be a choice not a financial necessity.