A few weeks ago I had the opportunity to meet Elaine King. Elaine is known as the “finance guru” and last March she was chosen as one of the 25 powerful women from People en Español magazine. Given her experience, I wanted to talk to her about finances, entrepreneurship and the challenges that Latina women face when starting a business.
Did you know that women stress more over money than men? A PriceWaterhouse study reports that 52% of women suffer from financial stress and 28% attribute that stress to distraction.
Do you suffer from financial stress? These three things are key to help you mitigate financial anxiety.
Getting organized entails having a good budget. But don’t panic! Let’s use the closet analogy. How do you organize your clothes? When you have a messy closet you even forget what pieces of clothing you have, and without much thought, you go out and buy some more. If you know what you have, you become more conscious and can save plenty of time and money. The same applies to getting your finances in order!
On the Internet there are thousands of free resources for understanding any topic you need to investigate or better comprehend in order to boost your confidence. Use online courses, books and tools, to understand and achieve better management of your finances. Some of these books by Elaine may be useful and can help you to understand some issues, as well as give you some tips that you can implement in your financial life.
Control is achieved through organization and understanding. Nothing like being clear about what you have, knowing that money is optimally organized and being used as you intend to.
How to invest in a small business without falling into debt and without leaving aside our personal savings account
As entrepreneurs, it is very difficult to start a new business without falling into debt. And the savings account? Many push it aside, because it seems impossible to invest and save at the same time. During my conversation with Elaine, I asked her for financial advice for us, enterprising women, and this is what she shared:
Invest in something you are passionate about
It is very important that your investment goes to something that you like. You must invest in your dream and not in any other. If your friend wants to open a clothing boutique, maybe that is her dream, but not yours. Maybe your dream is to be an artist … Your company must be a reflection of your values, your passion and your talents. Focus on what you’re good at!
Positive debt is good
Taking out a government loan in order for your company to thrive is a good thing. Getting into debt over things that depreciate over time, such as clothing or the latest mobile phone you don’t need, is not recommended. Debt must be used as a springboard to grow and not as something that works to your disadvantage. Bad debt can affect your credit history and when the company grows and you need more money, your credit won’t be good enough.
As entrepreneurs, saving is difficult, but not impossible
You must make saving a habit. For every dollar you earn, you should spend 10% on your savings account. As a freelancer or business owner, it is also very important that you set aside a savings account for taxes. If you do not keep an amount of your winnings each month, at the end of the year you will have to pay out of pocket.
Request a bank account, separate from your personal, and designate it as “tax saving”. In most states in the United States, where there are no state taxes, it is advisable to set aside about 15% of your income, while if you live in New York City, it is advisable to take 20% of your monthly income.
For clearer goals, plan more
Designate your partner, family member or a trusted friend as the person who can keep you accountable for the goals you achieve. If you are an entrepreneur, you have your dreams and you put them on paper. But, what happens if you don’t achieve them? This person will support you, when you achieve and when you fall short. When you earn rewards for the goals you achieve or when you need reprimanding for not achieving them. This will help you to be disciplined, staying focused on your goals and pushing your project forward.
Do you have any questions about this topic? Share with us your personal tips on how you organize your finances!
About Elaine King:
Author of the 2 award winning books Family and Money Matters Next Generation and La Familia y El Dinero Hecho Facil, Elaine King is frequently invited to international television and radio shows and is quoted by international news organizations for her brilliance and philosophy in the field of finance and family. With an International Business Degree from St. Mary’s University and an International MBA from Thunderbird the #1 ranked school in the world by the Financial Times, and Graduate studies in Family Therapy from Georgetown, Elaine’s expertise is unparalleled.
Her career has taken her to Austria, Brazil, Canada, Colombia, Ecuador, Japan, Mexico, Peru and across the United States. Currently serves as WE Family Offices Director of Family Education & Governance. She has also served as Vice President of Bessemer Trust’s $88 billion family office group, Managing Director of LFG, Director of Gibraltar Private Bank & Trust’s Wealth and Well-Being Planning Institute, Investment Manager of the Royal Bank of Scotland’s Coutts Latin America Division and Investment Manager of Citigroup’s $13 billion advisory service group. All these experiences along with her insight into finance and family dynamics and careful studies led to the creation of “Family and Money Matters Institute™” lessons simple enough for everyone to understand.
Elaine King resides in Miami, FL, and is a successful Certified Financial Planner ™, Florida Supreme Court Family Mediator, and Certified Divorce Financial Analyst who provides families with planning strategies by helping them understand, organize and manage their wealth around an actionable strategy. Her unique vision allows her to play multi-faceted roles of advising on retirement planning, saving for educational needs, estate planning, family meetings and financial competency programs for children & women. She is a public speaker, a public educator, and serves as Ambassador for the CFP Board, the Financial Planning Association Board, Estate Planning Council and has served for the Collaborative Family Law Institute Board. She mentors children and supports CIMA, a shelter for homeless children, in her native Peru.