Ask The Millionaire Mommy Next Door a question (Women of Personal Finance Spotlight)

[Lynn]

For this entire week (8/25 - 8/31), Jen from The Millionaire Mommy Next Door will be answering questions in this forum thread about blogging, personal finance, and entrepreneurship!

Jen went from working a minimum wage job as a college drop-out to financial freedom as a debt-free, self-made millionaire by age 40.

Today she is the author of one of the most popular and inspiring personal finance blogs. She pledges her blog's profits for no-interest microloans for small businesses operated by working, impoverished women in developing countries.

At the end of the week we will pick some of the best questions and answers from this thread and publish it on the main blog.

Welcome to Wise Bread Jen.

[Velouria]

Hello Millionaire Mommy Next Door. Your article on why women need more money than men was a true eye opener for me. I always knew we made less than men but I didn't know that A woman who works full-time for 40 years will earn $523,000 less than her male counterpart! I forwarded that article to all my girlfriends.

OK now on to the question.

In your experience what are some of the most common misconceptions women have about money?

Thank you for writing such great articles!

Lacey

[MillionaireMommyND]

Originally Posted by Velouria

Hello Millionaire Mommy Next Door. Your article on why women need more money than men was a true eye opener for me. I always knew we made less than men but I didn't know that A woman who works full-time for 40 years will earn $523,000 less than her male counterpart! I forwarded that article to all my girlfriends.

OK now on to the question.

In your experience what are some of the most common misconceptions women have about money?

Thank you for writing such great articles!

Lacey

Thanks Lacey, Wisebread administrators and forum community for your warm welcome!

Lacey, as I pointed out in the article you referenced, women and men are socially "conditioned" to think and behave differently when it comes to money. Men are often raised to think about providing for the future; whereas women are raised to nurture their loved ones today.

Although gender stereotyping appears to be on the decline, I find many women making money management choices that aren't supportive of long-term financial health. For instance, some women save for their kid's college education, or support adult children, before they sufficiently save for their own retirement needs. (Yes, I'm suggesting that women fund their retirement account(s) first, before funding their kids' college savings plans.)

Settling for a smaller paycheck - when compared to what a man would accept for the same work - is another common issue. It's easy to say, “refuse to be underpaid”, but harder to assert oneself and act accordingly. Gender stereotyping often keeps women from feeling comfortable with displaying assertive behavior. (Please note that I'm referring to assertive behavior, not aggression.) When I was growing up, I was fortunate to have a couple of assertive role models in my life. May I suggest that if you didn't, it's never too late to seek appropriate mentors.

Finally, some women still hold on to the dream that Prince Charming will come into their life, sweep them off their feet, and take care of all their money woes. I watched my divorced mom struggle with this dream for years. It never happened for her. And she paid a dear price for this mindset.

[Gaylesblog]

I started reading your blog after seeing the Wise Bread introduction this morning. I'm already hooked! Financial indepence is a major goal in my life. Besides the joy of working in your pajamas, can you tell us some of the other benefits of not having to answer to a boss or alarm clock? I would like to live vicariously through you even if just for a second.

[MillionaireMommyND]

Originally Posted by Gaylesblog

I started reading your blog after seeing the Wise Bread introduction this morning. I'm already hooked! Financial indepence is a major goal in my life. Besides the joy of working in your pajamas, can you tell us some of the other benefits of not having to answer to a boss or alarm clock? I would like to live vicariously through you even if just for a second.

Like you, I often live vicariously through the stories of others, and in fact, I think this pleasant pastime has contributed significantly to achieving my own personal goals. By immersing yourself in what you want out of life, your thoughts direct your actions, and your actions determine your outcome. I find that success starts with visualization. So I'd be happy to oblige and paint a picture for you of what financial freedom looks like for me.

My husband, daughter and I wake when we're rested (never with an alarm clock), brew a pot of organic dark-roast (and a sippy of hot milk for our daughter), and ease quietly into the new day. After reading the newspaper and/or our favorite blogs (plus a little Sesame Street), we discuss our options. Write? Volunteer? Head to the swimming pool? Take a trip to the zoo, park or museum? Perhaps a little work first? (note: when you do something you enjoy doing, it's hard to call it work)

Afternoon rolls around and it's nap time. I love naps! I often share them with our daughter.

Rested and refreshed, it's now time to think about our day, part two. Now that our friends are able to leave their 9 to 5 grind, we consider our options for social activities. I participate in a couple of monthly book discussion groups and weekly writing critique circles. My husband plays in a recreational hockey league and participates in a weekly Dad-and-Daughter playgroup. Together, our family frequently joins with friends to play Mah Jong, attend fresh-air concerts, picnics, cultural events and festivals.

Unlike most young children, our daughter doesn't have a set bedtime. Instead, we choose to go with the flow – sleep when we're tired, play when we're playful, and work when we want to. So there is no need for alarm clocks or schedules!

To see how I've harnessed the power of visualization to create the life I want, read my article, Create Your Treasure Map To A Rich Life.

[Shanel Yang]

I'm currently working on a series called "For Bloggers Only" teaching what I've learned about blogging since last Fall. What are the secrets to your successful blog -- besides the terrific content and contagiously positive attitude you have about everything! : )

[MillionaireMommyND]

Originally Posted by Shanel Yang

I'm currently working on a series called "For Bloggers Only" teaching what I've learned about blogging since last Fall. What are the secrets to your successful blog -- besides the terrific content and contagiously positive attitude you have about everything! : )

Hi Shanel, thanks for joining the conversation here – and for your kind compliments!

When it comes to blogging, here are a few things I've found most helpful:

1) Share your heart and your passion. Write about what you know. Your passion will be evident to your readers.

2) Identify your target audience. It's impractical for your blog and writing style to fit everyone's needs. Keep your target reader in mind when you write.

3) Provide value. Aim to make each post a resource for your readers. Content is king (um, queen!). Quality content creates value for the reader, and in turn, value drives long-term traffic.

4) Rather than aim for a high number of published posts, write when you have something important to say. Some bloggers are likely to disagree with me on this because a high quantity of content can apparently help direct search-engine traffic. But loyal readers (subscribers) and incoming links from other blogs and web sites are my personal measure of a successful blog.

5) Introduce your blog to new readers by submitting your best articles to topical blog carnivals.

6) Write guest posts for popular, high-trafficked blogs within your niche. Again, this serves to introduce your blog to potential new readers. (This is something *I* should do!)

7) Develop relationships with other bloggers. Blogging shouldn't be viewed as a competitive thing – there are more than enough eyeballs for everyone's blog. Reach out, network, be supportive and helpful. (Unfortunately, one of the pitfalls of my blog's increasing traffic is my personal inability to keep up with readers' comments and emails as well as I'd like. Perhaps if I didn't have a young child... or I'd set my alarm clock to wake at the crack of dawn...)

8. Strike a balance. Blogging can consume me if I let it! When I feel myself slipping into addictive blogging oblivion, I use my favorite productivity tool - a digital kitchen timer. Here's how I use the timer to get things done.

9. Research the “business” of blogging. Study other successful blogs and learn the how-to nuts and bolts from sites like Problogger.

Another reader asked me to share my blogging tips shortly after I launched mine. For more suggestions, please refer to my posted response, How To Grow Your Blog Business: 12 Success Tips For Newbies

[Frugal Duchess]

Hi Jen:

Great Q&A! You are impressive and I admire your success.

How much of your time is spent on blog networking, reading and commenting versus writing posts?

Blogging and the related activities can become so time-consuming. How do you manage and balance your time?

Are you ever tempted to wake up with an alarm clock?

Thanks in advance for your answer!

[Amy]

Dear Jen,
Thank you so much for taking the time to answer questions. We bought a house at the peak of the housing market. At that time, it seemed like a wise thing to do as prices were going up by the week. We were afraid who wouldn't be able to afford any houses if we waited too long. The value of the house is now down 20% from what we paid for 3 years ago (according to Zillow) and the price is steadily decreasing about $3K per month (again according to Zillow). We are going to move cross country in a few months and now the house is becoming a huge liability.

Few questions..

How reliable is Zillow in determining real estate value?
Should we rent the house while waiting for a better market?
Should we sell the house at a loss now because prices are likely to go down even further?

Many Thanks!!!
Amy

[MillionaireMommyND]

Originally Posted by Frugal Duchess

Hi Jen:

Great Q&A! You are impressive and I admire your success.

How much of your time is spent on blog networking, reading and commenting versus writing posts?

Blogging and the related activities can become so time-consuming. How do you manage and balance your time?

Are you ever tempted to wake up with an alarm clock?

Thanks in advance for your answer!

Thanks Sharon! I admire your success, too -- Congrats on your book!

In a nutshell, I spend time reading blogs when I feel like learning, and writing posts when I feel like sharing my thoughts, experiences or ideas. Sounds awfully simplistic, but hey, it works for me.

My biggest blogging pitfall is keeping up with emails. I read every email I receive, then star it to remind me to return with my reply... but then... well... more emails come in and I fall seriously behind. I hate to think that people might believe I've forgotten about them! I haven't. It's just that since I've started blogging, my MMND inbox has accrued over 5,000 emails. I'm finding it hard to keep up. Any suggestions??

Am I ever tempted to wake by alarm clock? Only when we need to catch an early flight at the airport for one of our travel adventures. We keep our one-and-only alarm clock packed in our suitcase for such times!