The Next Rich Girl

Rise of the Sugar Mama?

Up until 1964, a woman could actually be fired from her job when she got married (and it would be totally legal).

My, how times have changed. (And thank god!)

According to a study from the Pew Research Center, things are changing dramatically:

We found that increasingly, women are more likely to marry husbands who have lower education levels than they do, and lower income levels than they do," says D'Vera Cohn of the Pew Research Center. From 1970 to 2007, husbands whose wives earned more than they did jumped from 4 percent to 22 percent.

And, to top this all off, for the first time in history, a higher percentage of women under age 44 have college degrees than men in the same age group.

Will the 2000s be the century of the sugar mama?

First House, Step 1: Meet The Lender!

Well, my husband and I made the first dramatic step toward home ownership yesterday.  We met with a mortgage lender.  Holy crap.

A few notes for other potential first-time home buyers out there:

1. Know That You'll Have to Give Them Every Single Bit of Personal Information You Can Possibly Think of:  Before our meeting, we received a list of all the documents they'd need to start the pre-approval process.  Good lord.  Two years of W2s.  Last two pay stubs.  Copies of statements from every single bank account you have, even if it only has 30 cents in it.  Copies of your driver's license.  And, since my husband is self employed, they needed even more from us: 2 years of tax returns, a profit and loss statement, etc.  I was waiting for them to ask for a blood sample or for character references from our friends and family members.  Maybe that's part of the second meeting?

2. Prepare to Feel Overwhelmed:  We were very lucky to meet with two very intelligent and very clear loan officers.  They even had a little quick reference chart for us that explained the entire process, which was great.  But, I think no matter how much research you do ahead of time, it's hard not to feel a little dumbfounded in the face of so much information and so many different loan products.  Just take a deep breath and try to take it all in.  You're got time.  There isn't a test at the end of the meeting.

3. Make Sure You Feel Comfortable with Your Lenders: You're giving a lot of very personal information over to someone who is essentially a salesman.  Don't be afraid to ask lots of questions and get to know them.  They're going to know just about everything about you, you should at least feel comfortable talking to them.  If something doesn't feel right, it's okay to walk away.

4. Did I Mention Asking Questions?  Seriously, there's a lot of money at stake here.  If there's anything you're not sure about, ask.  If the answer doesn't make sense to you, ask again.  If you don't feel comfortable asking, you're working with the wrong lender.

Good luck all you potential first-time home buyers out there.  I'll talk more about my meeting with the lender later this week.  I have a lot of paperwork to look over...

Earn Less, Pay More: Being a Woman Doesn't Add Up

It's tough being a woman.  We make 78 cents for every dollar a man makes.  We pay higher insurance premiums just because we were born with one of those pesky uteruses (Hey, I didn't ask for it!).  And, now, it seems that we pay more for just about everything else as well, including shaving cream, moisturizer and pain relievers.

It's no wonder that women are 32% more likely to have a sub-prime mortgage - we're running out of cash!

Consumer Reports compared "male" and "female" versions of six different products to see who pays more.  And, big shocker, women were the losers in this equation.

Some of the reasoning is hilarious.  For example, A PR rep for Neutrogena explained the difference between two moisturizers: Ageless Essentials is a "water-in-oil" emulsion; Hydrating Eye Reviver is an "oil-in-water" emulsion. "These emulsion technologies have distinct skin feel attributes resulting in different aesthetics to satisfy demands of different consumers," Meresman says.

Sounds like a hype-in-BS emulsion to me.

But, is it really any surprise that we pay more for health and beauty products?  Marketers know that once you throw something in a pretty pink box and slap the words "age-defying" or "slenderizing" on it, women are suckers.  Women tend to care more about labels and packaging then men.  We tend to be willing to pay more for beauty items.  And, we tend to buy more different types of these products.

For example, I have one moisturizer that I use for "day" under my makeup and another "night cream" I use at night. And I'm far more frugal than the average person.  If I have two moisturizers (drug store brand, but still...), imagine how much someone who isn't as thrifty as I am spends on their face alone! If someone told my husband that he needed to use two different types of moisturizer (or, really, any at all), he would laugh at me.  

In all honesty, it probably all stems back to the fact that there is more pressure on women to look good (young, slim, sexy, whatever) than there is on men.  So, women feel like using more expensive products gives them an edge.  Some probably even think that looking better helps them earn more.  After all, there is some evidence that better looking people (especially women) are paid more so isn't spending more on beauty products an investment in your earning potential?

Maybe.  But, at the same time, if two products are identical except for packaging, only a fool would pay more for the one in the pink box.  So, I urge everyone reading this to start really looking at packages and ingredients lists.  Don't pay more for something just because it's in a pretty bottle.  Don't let yourself be "taxed" for being a woman.

Resolved: Financial and Personal Resolutions for 2010

I know, I know.  It's January 5th.  I'm way behind on posting my resolutions.  But, on the bright side (for me, not you), since most people have already abandoned their resolutions by now, I look like a more inspired, enlightened individual... one who can stick to her resolutions and who will prosper in the year ahead.  

Or maybe I'm just fooling myself.

Anyway, since one of my tips in my New Year's Eve post was to tell the world about your resolutions, it seems like I should do the same.

Here's what I'm trying to accomplish in the year ahead, both personally and financially.  

1. Buy my first home - This has been a dream of mine for a long time.  Seriously, when I was a little girl, instead of dreaming about a fairy tale wedding or having a pony or whatever, I used to imagine the house I'd have.  I think this is partially because my parents are both into real estate, so they would take me with them to open houses "just to look" when I was a kid.  So, it was like I inherited one of their dreams (and they have a beautiful house now, so they're the right ones to look up to!)  Anyway, I've been saving for a down payment for a long time (and somehow most of that down payment savings survived the epic financial crisis of the past year or so).  With the $8,000 first-time homebuyer tax credit (thanks taxpayers!) and the fact that my 30th birthday is just around the corner, everything seems to be lining up for this to happen in the next few months.

2. Earn $5,000 outside of my "day job" - I've been lucky enough to fall into a few random freelance writing projects over the past year or two... enough to show me that I could probably be doing a lot more freelance work if I start to seek it out more actively.  I don't know if I'll ever be able to fulfill my dream of working for myself, but it seems silly to not try to point myself in that direction.  After all, you don't know if you don't try.  And, this will go a long way toward helping me achieve goal #1.

3. Run at least 350 miles this year - I never thought I'd be a runner, but after completing a "couch-to-5K" program back in 2007, I got hooked.  Not only do I feel healthier, I think it actually helps me deal with stress better, keeps me from getting sick as often and helps improve my overall outlook (which can be gloomy - especially when it's so bitterly cold outside).  I ran just over 300 miles in 2009, sort of in fits and starts (one week I'd run 10 miles, then I wouldn't run at all for two weeks).  In 2010, I'd like to be more consistent with my runs.

4. Finish my novel - That's right, I'm more than just a blogger musing about personal finance.  I'm also among the legions of writers working on what they hope will be the "Next Great American Novel."  Of course, in reality, I'd be happy with "A Novel That Is Published."  Either way, I have to finish it first.

So, there you have it.  Four big goals.  What are your resolutions?

It's New Year's... Have You Made Your Resolutions Yet?

It's that time of year again!  I think the reason so many people get drunk on New Year's Eve is because it's the only way they can trick themselves into thinking that they'll devote the next 12 months to such decidedly un-fun things as dieting, exercising or saving money.

But, I do have to admit that I love making new year's resolutions.  I like that feeling that something new and exciting is starting... that I'm about to make my life better.  I like the idea of putting past mistakes behind me and working toward a new goal.  It's a time to look at yourself and tell yourself that you can make a change.

Sure, most resolutions fall by the wayside mere days after January 1st... but I'm convinced that if you really want to make a change (and I mean REALLY want to) you can do it.  

And, the first way to do that is to tell people about it.  Because once those words fall out of your mouth and the world knows you are trying to accomplish something, it becomes real.  You have a sort of instant accountability.  Even better?  If you tell someone to ask you about it.  Because eventually you'll get sick of telling your friends and family that you "just haven't gotten around to starting an exercise regimen/quitting smoking/whatever" and you start to want to show that you're doing it.

How Your Income Stacks Up

Prepare to be shocked.  New statistics from the IRS show exactly how your income stacks up against that of your fellow Americans... those who pay taxes anyway.

The data show that an income of $32,879 or more puts you in the top half of taxpayers. Earning a bit more than twice that much -- $66,532 -- earns you a spot among the top 25 percent of all earners. You crack the elite top 10 percent if you earn more than $113,018.

Crazy, no?  Am I the only one surprised that it only takes just under $33,000 per year to be in the top half of American earners?  Is this the American dream?

Even scarier: More than 40 million Americans are now living in poverty. 

It sort of puts everything in perspective for me (Yes, I am in the top half of taxpayers...).  I guess things can always be worse, financially. 

Christmas Derailed: Cancelled Flights, Refunds and Tough Choices

I'd like to say that the reason I haven't written here in a little over a week is because I flew home to California for the holidays.  I'd like to say that I've gotten too caught up in Christmas cheer and seeing my family that I've neglected my little corner of the internet over here.

But, that wouldn't be true.  It's supposed to be, but it isn't. 

You see, I was supposed to fly out of Baltimore-Washington International Airport (BWI) to LAX this past Saturday morning.  But, as you may have seen, mother nature had other plans.  A blizzard, to be specific.  In fact, our flight was canceled at noon on Friday... before a flake of snow had even fallen from the sky.

A few hours on hold at united later, I was booked on a flight from Washington National at noon on Saturday.  But, getting to DC (I live in Baltimore) during a blizzard didn't seem like a viable plan.  So, we rescheduled to another flight out of Baltimore at 7 a.m. flying through Charlotte.

A few hours later, that flight was canceled too.

The $20 Christmas Challenge

 It should come as no surprise that this Christmas is going to be a bit more frugal than ones past. (Well, okay, last year was bad too...) 

The recession is allegedly over, but my own personal recession is still going strong (despite glimmers of light at the end of the tunnel).  But, my husband and I had been avoiding talking about the looming holidays and the expensive gifts that go along with it.  I think, in a way, we'd both been hoping that we'd get some sort of windfall (he'd land a big client, I'd land an awesome freelance gig, Publisher's Clearinghouse would call or whatever) and then we'd get to go back to the old days - shopping spree galore!

But, a few days ago, we realized that we needed to talk about the elephant in the room: the juxtaposition of our shrunken bank accounts and our desire to give each other really fabulous and meaningful gifts.

We'd managed to finish up our shopping for our families (on a budget of course), but it didn't really leave either of us with much more spending money.

So, rather than go into debt or freak out, we made a deal. 

We're calling it the "$20 Christmas Challenge."

Will the Recession Make Men Step Up Around the House?

I've been thinking about this article in Newsweek this week that talks about how the recession may be helping families rebalance.  It argues that now that women account for 40% of the average household's income, men have to take up more of the slack around the house.  They need to do more cleaning, cook more meals, carry more of the parenting weight.  

And this is not just because women now spend more time outside the home, now women have to worry that any time taken off is a mark against her in the workplace.

Because women typically shoulder more of the weight of household management, they are perceived as more likely to allow their home life to interfere with work:

Maternal profiling is real. When a working father takes time off to watch a ballet recital, he's seen as noble. When a working mother rushes out of the office to care for a case of head lice, she's more likely to be labeled undependable. Mothers looking for work are less likely to be hired, are offered lower salaries, and are perceived to be less committed than fathers or women without children, according to a 2005 report by Shelley Correll, now an associate professor of sociology at Stanford University. And according to a 2007 survey by Elle/MSNBC.com, female bosses are twice as likely than their male counterparts to be seen as having family obligations interfere with work.

Step Away From Your Email!

Perhaps it’s because of women’s hard won reputation as excellent multitaskers.  Or perhaps its because we all panic that if we don’t put in our two cents instantly, we’ll be ignored.  But whatever the reason, too many of us have gotten into the nasty habit of being “overly responsive.”

As soon as our Blackberrys buzz or we hear the ping of a new email arriving (the tiny envelope icon lingering in the bottom right corner of the computer monitor, taunting us), most of us drop whatever we’re doing and check it out – eager to respond first... or to at least have the option to be the first to weigh in.

But, I’m here to tell you that it’s time to stop.  Sure, there are times when major projects are reaching completion or you’re waiting to hear back about an important issue with one of your clients, so you need to be instantly accessible.  But, most of the time, you don’t need to drop everything at the first sign of an email communication.  In fact, waiting might actually help you.

Here are five reasons to wait before checking your email for the twentieth time this hour: