For the better part of my career in the financial world, I was somewhat of a disinterested investor.  Even though contributions were made to my retirement account, bills were paid on time, debt was kept manageable, credit cards were paid on time, and the bank account was never overdrawn – I wasn’t fully engaged.

What drew me in was not my own situation, but my father’s illness that left my mother in need of help.  Suddenly, it was critical that I step up my knowledge and involvement.  The urgency (for someone else’s benefit) was just the push that I needed and it changed everything, right down to my career path.

I spoke with Tara Siegel Bernard, personal finance reporter for The New York Times for my podcast, On Her Mind, and discovered a kindred spirit.  She, too, did not set out with the goal of writing about personal finance, but as her knowledge grew she found herself “aching to write about people and their stories” and ultimately started writing for a broader audience.

That authenticity enables her to reach readers and inspire them to take a more active role in their financial lives.

As a female, she is in a unique position to demystify personal finance for women.  As a working mother with young children, she faces similar challenges that many can relate to, which makes her advice practical.

If you know a disinterested investor, share the podcast and introduce them to Tara’s column.  That might be the nudge they need to get going in the right direction.

Today I want to unveil my latest project:  On Her Mind, a podcast to address the many worries that weigh on a woman’s brain.  Whether you are a woman, or want to understand women better, this podcast sheds light on topics many want to learn about but resist asking about – things like money, careers, relationships, and aging parents.

My first guest is Carolyn McClanahan, who offers up insights on how to make a fresh start with your career path.  Carolyn has walked the walk by transitioning from ER physician to financial planner.  She shares the steps she took to design her life as her priorities changed, and offers practical advice on how to be brave enough to do the same.  I could have talked with her for hours; she is a wise soul with much insight to offer.

I hope you’ll listen, subscribe and offer feedback so I can make the podcast most useful to its listeners.

So why am I doing this?

Some 14 years ago, I found myself pushing my double-wide stroller into an unfamiliar church basement.  I was there for my kids, I told myself.  They needed to learn to separate from me.

The makeshift Mother’s Center had a Child Care Room that was manned by paid, experienced adults who were just one room away from the discussion room, in case the little ones needed a diaper change.  It was the perfect way to ease into separating while allowing for adult conversation.

This world was new to me.  I wasn’t one to join discussion groups and I wasn’t lonely or looking for friends.  In order to join, all mothers had to participate in an orientation class, which discussed their road to motherhood – from conception to birth and everything in between.

I wasn’t excited to share my tale of my difficult twin pregnancy that was in jeopardy almost from the moment we conceived.  I was tired of thinking about the bed rest, the hospital stays and their pre-term births.  Did I really need to dwell on how little sleep I was getting?  Did I want to tell total strangers what motherhood had changed in me?  Were there even words to describe the seismic shift?

There was another reason for my discomfort.  I wasn’t used to being in large crowds of women – my work experience in finance meant I had often been the only woman – or one of a few – in the room.  I didn’t want to hear gossip, judgment or backbiting and I wasn’t sure what the vibe would be in these discussion groups.  Even now, I am embarrassed by how judgmental I was being before I even entered the room.

Rarely in life have I been pleasantly surprised – but this was one of those times.

In a culture where no one likes to admit their struggles, these women shared their fears about losing themselves in motherhood, and trying to regain bits of themselves.  Some were slogging their way through post-partum depression, and released their feelings of loneliness and guilt.  Some had lost pregnancies or buried children and were dealing with trauma.  Others were grieving their deceased parents – or the fractured relationships that left them estranged.

We shared what successes we had in getting our kids to breastfeed, sleep through the night, and potty train; we shared our failures, too.  We swapped names of pediatricians.  We gave support to those dealing with marital or in-law stress.  We learned self-defense moves.  We encouraged one another to find parts of ourselves that were always there, before the children existed.  Some started businesses due to the boost in confidence they received there.

In a non-judgmental, supportive environment these women were a steel backbone for one another and frankly, I will always be grateful to them.  It was there I was asked to conduct a financial education group.  It was there I wrote my first personal finance article for the newsletter.

It was there I realized how ignorant these very capable women were about their money.  They were also particularly vulnerable, as many were stay-at-home moms who had left their careers to raise their kids.  Many were trusting that their husbands knew what to do – but they didn’t know for sure because they were not plugged in.  Motherhood was taking every bit of their bandwidth.

Fast-forward to today and I thought about the many roles we play in life.  Women, in particular, juggle many things – whether they have children or not.

I made a list of the most important roles I’ve served in my adult life – single career woman, married career woman, manager, daughter to aging/ailing parents, stay-at-home mom, parent-less daughter, mother to a seriously ill child,  entrepreneur/business partner, working mother … the list goes on.

I’m not unique.  We’ve all had experiences that have taught us invaluable lessons; these lessons would be much more valuable if shared with others struggling with these same challenges.

That is what I want to bring listeners every week.  I hope you’ll join me and share the podcast with others who could use some encouragement in all areas of their life — not just finance. I will tap the minds of successful women from diverse backgrounds, such as medical, legal, non-profit, media and business.  I will offer personal finance perspectives to demystify the jargon-filled world of investing and make it simple to understand.

Let me know what you struggle with because I want to help in any way I can.

My kids are now nearly 16 and a lot of living has gone on over the years, which means more ideas for content.

All I can say is stay tuned and see what you can apply to your life.

 

 

 

 

 

 

 

“I’m mad at myself for wasting time,” he said.  “Nine whole years have passed that I won’t get back, and I did nothing!”

I suppressed a laugh, but I was not making fun; I was astonished.

I’ve heard this many, many times but this guy was different.  He was 25 years old, lamenting about what he did not do at age 16.

His wise grandmother had told him to start contributing to a Roth IRA when he was 16.  She showed him how $5,500 invested annually until he retired at 66 would likely grow to over $1 million if he received average market returns.

She was right to encourage him early on.  I always tell young people that it doesn’t take a lot of money to grow money – it takes time, discipline and consistency.  Those three components can super-charge a retirement fund.

In my experience, however, people mistakenly think that a small commitment is not worth making.  They wait to save up until they have a big stash to plunk in all at once.  Unfortunately, this usually falls by the wayside.  Other expenses creep in  — like getting a new car.

Or they become distracted by what the market is trading at and they stand on the sidelines waiting for the right time to jump in.

To someone young and not earning much, it can seem like there is no place at the grownup table – trust me, there is.

A consistent, disciplined plan (think automatic investments deducted from a bank account every month) is better for many reasons.  $100 a month might not be noticed in the monthly budget – but writing a check for $1,200 might cause a hand-freeze.

The market is up?  The market is down?  No big deal because shares are being bought monthly so the share price averages out.

In Tiny Improvements, Big Results, my colleague, Ben Carlson, shared just how meaningful small changes can be.  While this example is hypothetical and assumes a market return of 6% (not an unrealistically high return; but the market never generates a fixed, consistent return), the takeaway is how powerful compounding is, even when done in small increments.

Investing just $25 a month from ages 22 to 65 could result in an account worth over $60K, which is pretty impressive.  Who would miss $25?  That’s like $6.25 a week.

But, by increasing the amount to just $30 a month, the account could grow to over $215K.

And, if every year that monthly amount was increased – the results are astounding:

As Ben points out:

“Adding $5, $10, $25, and $50/month to your savings each year is an annual increase of just $60, $120, $300, and $600, respectively. These aren’t enormous sums of money but look at the massive differences in the ending balances.”

“Saving $25/month over the course of a year is only $300 in total but adding $50/month to that total every year using an incremental approach can add up to a fairly large sum of money through a combination of diligent saving and compound interest.”

So, if you’re young – know that your “little” savings can yield big results if you do three simple things:

• invest consistently;
• make time work for you; and
• increase the amount you invest gradually.

Compounding does not discriminate.  It likes all contributions, big and small.

If you are reading this and you are already older and wiser, be like the grandma who encouraged her grandson.  Share this with someone who needs a reason to get started now.

As for that 25-year-old, I told him he still has miles of road ahead of him.  If he uses his remaining time well, he’ll stop beating himself up for missing out from ages 16-24.

I have no doubt he will.