Galia and SIMPLY MONEY on CNN!

Yes, the same week we were on CNN too! They also filmed SIMPLY MONEY. This was an investing class. See the clip here!

Experience SIMPLY MONEY in person. Sign up for the September class NOW.

Galia and SIMPLY MONEY on TODAY SHOW!

The TODAY SHOW came to film SIMPLY MONEY a few weeks ago. Their premise is tracking the success and progress of a few women in the class. See the clip here!

Experience SIMPLY MONEY in person. Sign up for the September class NOW.

Visit msnbc.com for Breaking News, World News, and News about the Economy

FICOlogy as found on DailyWorth.com

In every conversation I have with clients or at seminars, making sure your credit report is as solid as ever is absolutely key! That is why I loved this article as found on DailyWorth.com. If you aren't already signing up for their daily easy to read newsletters, what are you waiting for? Here is a little tidbit from the article. The rest is on their site.

Craig Briskin, a consumer and anti-trust class action attorney with Mehri & Scalet, PLLC, wrote this expert's perspective on FICO exclusively for DailyWorth.

Times are tough for that thing we call money. Jobs are disappearing, credit is drying up, and no one seems to know when things will turn around. Part of the problem is how credit reports and scores are calculated. Now more than ever, it's important to avoid any blemishes on your record. People with good credit scores not only qualify for credit, they can also get better rate offers on mortgages and car loans.

Our system outsources most credit rating to three major, private credit bureaus, which are known for mixing up the files of people with similar names and Social Security numbers. The U.S. Public Interest Research Groups (PIRG) and Consumers Union found serious errors in 25% of credit reports.

Fair Isaac Corp. developed the FICO (short for Fair Isaac Corp., get it?) score, and claims that it's based on five major categories of factors - payment history is the most important. But they don't publicly disclose the remaining factors are or how they're calculated. FICO scores range from 300 to 850; 720 is the average score, and that's what you should shoot for.

REST OF THE ARTICLE HERE.

What to Carry in Your Wallet

One way to really change your spending is to stop using your credit cards. Is that realistic? Not for many of us! One way I found to minimize my credit card spending is to come up with a weekly amount I want to put on my credit cards. I literally keep a POST-IT piece of paper on my credit card in my wallet. Every time I use it for that week, I write the amount I spent. I just use the pen that I used to sign my name. This way, I can quickly tally up what I spent that week.

For example: $23 at drug store, $50 at grocery store, $45 at GAP Kids. I can quickly tally that I spent $118 for the week so far. I am still under my $200 for the week and can still afford to go out to dinner for $80. Not bad!

Money Myths

I found this article on TOUGHMONEYLOVE and some of the myths really rang true from comments I hear from clients or seminar attendees. I took a few of his myths and added my comments.

1. You spend more time monitoring your credit score than you do evaluating the performance of your investments.

In every seminar I give and almost every client I meet with I get asked about their credit score. Whether they want to know how to raise it or monitor it or if they should spend a monthly fee for insurance and monitoring. That energy should definitely be put towards monitoring your investments and understanding how they work instead. I am not a fan of paying a monthly fee to the credit agencies. Instead, open your bills and go online every week to check your bank balance.

2. You think re-paying a 401(k) loan is an investment.

My cardinal rule is you do not touch your 401(k). You will need that money when you get older. I have heard that it is ok to touch your 401(k) money if you want to buy a home. I disagree. Find that down-payment money elsewhere.

3. Instead of asking the price of the new car on the lot, you ask “how large will my payments be?”

This is directly from TOUGHMONEYLOVE. If a new car salesman can get you involved in this conversation, you are finished as a smart consumer. I’ve never asked this question because I pay cash for cars. Car dealers don’t like this because of all the money they make on financing. With all of the focus on payment size, it makes me wonder if car buyers can even do the math necessary to total their payments up.


4. You believe a cash-out refi is a debt reduction strategy.

Who hasn’t heard someone say that they were going to re-finance their mortgage so that they can pull cash out to “pay off debt”? Uh…what part of “debt” don’t they understand?


5. You are afraid to open your mail when the bills arrive.

Whenever I ask this question in a seminar, more hands are raised than not. One way to get around this is to deal with your money every week. If you open your mail as soon as it comes in, you will feel more on top of your bills and money issues. Try it.

6. Mr. FICO is your friend. Mr. Net Worth is a stranger.

How hard have you worked to save money into your 401(k), save for your down payment and put money in the bank? Probably really hard. Yet you don’t know how much it is worth or how much your investments are today? Treat your money (and yourself) with more respect. Make it a priority. Know your net worth.

How to Be an Entrepreneur and Pay the Mortgage

This is an age old question. I was reading Marci Alboher's new blog on Yahoo Shine: Working the New Economy and she interviewed Pamela Slim. Pamela's new book, Escape from Cubicle Nation, is a book I have wanted to read. Marci asked her a question about financial responsibilities for entrepreneurs that resonated with me:

So many would-be entrepreneurs are put off by their financial responsibilities. What to you say to people who say they’d work for themselves if only they could figure out how to pay the mortgage?

"You need to look at your financial situation with open eyes. And it’s all about your own your tolerance for risk and your financial planning. On the risk side, people have told me that they have hundreds of thousands of dollars in savings yet they still felt anxiety around starting a business. I’ve also talked to people with a thousand dollars in the bank who felt very little anxiety. As for the financial planning, if you are the only income earner or have dependents, then you absolutely need to know how much money is required to maintain your household. As enthusiastic as you are about your business idea, if you haven’t planned for cash flow, you can be crushed by anxiety if you can't pay your bills. All the experts say to have a six month cushion at minimum, but again, it’s really about knowing yourself. Some people feel really motivated if they don't have money in the bank because they know they have to make things happen quickly."

First Step in Money Success: Realization

Last night was the second week of SIMPLY MONEY for the summer. In just one week, this group of women achieved money success. While it might seem hard to believe, it isn't. The one theme that came from the evening was REALIZATION.

The homework from the week before was to do their "30 Second Financial Check-Up." This is a relatively simple, but POWERFUL, exercise. It did take some women hours to do but the idea is that once you do it, you can keep doing this check-up every month and it will only take you 30 seconds.

While we were going around the room sharing our money progress, I kept hearing:
"I didn't realize I had that much invested"
"I didn't realize how little I knew about my expenses or my income"
"I didn't realize how long it would take me just to find these 4 numbers"
"I didn't realize I earned that much last year"

I keep coming back to the point that it doesn't matter who manages your money, your partner, your spouse, your trusted money manager. It is your money - no matter what. So realize what you have.... It is a great place to start!

Women Need To Toot Their Own Horn

I met Jessica Shambora a few years ago at In Good Company. She is part of the writing team for Postcards at Fortune Magazine, and I follow her articles regularly. I recently read the article: "Gerry Laybourne Reemerges, Wisdom Intact" about an interview with Geraldine Laybroune, who created Oxygen and then recently sold it to GE. Patricia Sellers interviewed her and I loved the following quote. It inspired me as a woman and business owner and entrepreneur to push myself further up the ladder.

“Laybourne noted two areas where women aren’t too adept. “One is tooting your own horn,” she said. “Women are slaves to facts and don’t take risks as readily and trust their intuition.” She felt her own intuition blocked at Disney (DIS), where she spent a couple of years pre-Oxygen and felt that centralized control and over-analysis of ideas hampered creativity. “Eighty percent of business decisions get made on intuition,” she ventured.”

First Time Home Buyer?

I met with a client yesterday that had finally saved enough for a down payment. She is very hesitant to buy an apartment (especially in NYC) and I can understand why. We kept going through the numbers and while it is a bit of a stretch for her to buy an apartment. However, for many reasons, I think she should! My clients that own their own home have a higher financial net-worth!

One more reason to buy a home today. If you are a FIRST TIME HOME BUYER, the stimulus package can help you If your adjusted gross income is below $75,000 (if you're single) or $150,000 (if you're married and filing jointly), you are eligible for an $8,000 tax credit toward a first-time home purchase (this also applies to those who have not owned a home for the past three years). Given that interest rates today are extremely low and home prices have fallen in many areas (even in parts of NYC), this could work to your advantage too!

Do Less With Your Money

Last month I was reading Jada Pinket Smith's "AHA Moment" in O Magazine about doing less in her life. It was something I could completely relate to on a personal level, which I will share in a few minutes. My "AHA Moment" was realizing that it could be applied to your money and personal finance as well! I consider myself a business owner, wife, mother, friend, daughter, sister, runner and more, but not always in that order. These are all areas I feel passionate about but I find that I am constantly doing many things at one time and not necessarily on a quality basis. More and more I realize that I need to commit to less projects and focus on the ones I'm doing. Rather than try and do many seminars or network in twelve different places, I will pick one. When I'm with my children, I vow not to look at my email or just turn my phone off. Shouldn't this attitude be applied to your money?

One of my most popular seminars is "7 Financial Steps Every Woman Needs to Know". While it is a great overview seminar, I also encourage the attendees to just focus on one step. Take the same advice to your personal finances. Chances are you have many worries about your money: your credit report, your low savings account, your dwindling IRA, your lack of a budget. Pick one and just focus on it. For example if you want to take charge of your investments then put your budget worries on hold, stop focusing on increasing your FICO score and put your down payment savings on autopilot.

For example, for your investments, here is your assignment:

* Consolidate your investments to one place. I’ve always been a fan of Fidelity or Vanguard.

* Pare down your mutual funds to just 4 or 5.

* Follow the Mutual Fund checklist for buying new mutual funds or deciding if you should keep your existing ones (as found in SIMPLY MONEY class, My Money Matters, and Personal Finance toolkit).

* Bookmark the www.morningstar.com page on your computer so you can easily do check ups.

* Keep your fees as low as possible or none at all. (Meaning you buy no-load mutual funds or mutual funds with a low expense ratio)

* Get a system setup for organizing your statements or files. Once you have done these tasks and felt the accomplishment of thoroughly working on this one area, you will be motivated and energized to tackle the next area of your personal finance life.