Lesson from the Beleaguered Financial Trenches

I’ve always found inspiration through stories of other women who shared my plight, of struggling with money while trying to raise a family. Once I finally had the time to research and write, I wanted to give back some of the financial lessons I learned over the years. That’s the “why” behind starting this blog on women’s finances.

My timing for starting my blog could go either way. The savings and investing principles all seemed sound enough at the time, but as I watched the financial bottoms drop from beneath the feet of the American, and ultimately global economy, I ended up like the proverbial deer caught in the headlights. I didn’t know what to write. But now, after gathering my wits about me, what have I learned though the dust has yet to settle around us?

Well my purview doesn’t come from being a financial maven. I found myself in a place not too long ago where, had I taken control of my finances with focus and discipline, I would be a wealthy woman. But that’s not just my story. We women do not rally our natural organizing skills around money. We also continue to hand over control of our money to the men in our lives; first fathers then husbands and maybe even to our not too savvy accountants. We can’t stop seeing our world of money as a man’s domain. So at various points we struggle to weather inevitable financial storms because we are so ill-prepared instead of buckling down knowing we have made the best possible decisions to get us through.

So what has happened to us over the last couple years (since December 2007 to be precise) when the economy went topsy turvy, going against all the popular advice and directives out there? And what did it mean for us then and what do we do now?
- Mindset had the biggest influences on personal and family finances.
- Those who thought their financial ride upward would never end received a wake up call.
- Those who generally were not aggressive investors did better than those who bet the bank on aggressive stocks.
- Those who lived above their means were shocked into reality when they lost jobs, investments and possibly their homes.
- Those who lived moderately and within their means did well and were not so heavily impacted by the downturns.
- Those that made sure they had a financial cushion were prepared for major changes.

What about advice from the so-called experts? The push to aggressively invest seemed to have remained constant with no word that the market is not always steady and predictable. I still stand by my belief that this was an error. Nothing lasts forever is a saying that will last.

The lessons from this time in our financial history are to stay focused on your goals, revisit your financial plan at least quarterly. Make adjustments as needed and be sure to have a reasonable percentage of your money saved in an insured account even if it means you will be receiving interest at a lower rate. Moderation and balance serve those to withstand financial downturns when they came.