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While credit cards are fairly ubiquitous, they are from time to time criticized for being conduits to debt and blamed for tough economic times. It’s true, you shouldn’t use a credit card if it will lead you to spend beyond your means, and a pervasive lack of transparency from credit card companies did complicate things during the recession. However, much has improved since the CARD Act – a law that improved consumer rights and transparency in the industry – took effect in February 2010, and credit cards really can be useful. In fact, there are myriad reasons to love credit cards, and five of the biggest are laid out below:

1. Credit Building – If you have an open credit card account in your own name, information will be added to your files at the three major credit bureaus (Experian, TransUnion, Equifax) on a monthly basis. That’s whether you actually use the card to make purchases or not. And that is why a credit card is the most efficient credit building tool around. So, whether you make purchases (and on-time payments!) with your card or not, make sure to at least have an open credit card in good standing. Given the importance of your credit score, a lot depends on it (e.g. mortgage and car insurance rates, ability to lease a car or rent an apartment, job prospects, etc.).

2. Interest – It’s often impossible to make big-ticket purchases (e.g. a sofa, refrigerator or car) in cash. If you don’t have a credit card, the options left to you—loans and financing deals—will likely have high interest rates. Zero percent credit cards help you avoid interest for as long as 21 months.

3. VIP Treatment – Certain credit cards with rewards provide access to airport lounges, concierge services, rental car insurance and even office space for travelers. Many offer status points or miles as well, which can help brand loyal consumers move up the status ladder in their loyalty rewards program of choice. Credit card memberships can also score you exclusive deals and access to tickets for concerts, shows and sporting events.

4. Fraud Protection – Both credit cards and debit cards provide $0 liability guarantees. However, since money is removed from your account as soon as a debit card is used, you might not notice unauthorized charges before making payments to your monthly obligations. If any payments do not go through or checks bounce, you’ll have much more on your plate than simply contacting your bank to sort out the fraud. With a credit card, you don’t have to submit any payments for at least 21 days after receiving your statement, which means you will have plenty of time to report and remove from your bill any unauthorized purchases before they have unfortunate peripheral effects.

5. Business Perks – Business credit cards help small business owners track and manage business spending as well as provide employees with custom-limit cards and earn rewards on their spending. They don’t have legally-mandated protection under the CARD Act and are therefore ill-suited to spending that leads to an end-of-month balance (interest rates on existing debt can be changed at any time, unlike with personal credit cards). However, business credit cards with rewards are the best tools for handling purchases that you pay for in full within a single billing period.

This article was written by Odysseas Papadimitriou , CEO and Founder of Card Hub.

Are you a lover or hater or credit cards?  Do you think it’s possible to live with or live without them?  Tell us in the comments or on Facebook!

Is your home an investment or just another place to live?  Many homeowners say that it’s an investment because it helps them sleep at night after sipping the Kool-Aid during the housing boom.   Well, I’m here to get in your face just a bit and tell you that your home is a crappy investment.  Furthermore, it’s an investment that you’ll never truly own as long as not paying property taxes means that your home can be yanked from you and sold on the court house steps.  This further makes the concept of home ownership ie the American Dream, flawed at best.

Buying A Home Is Always A Good Investment

Historically we know this to be true, but since I forgot my crystal ball today, the verdict is out on whether or not this will remain true in the years to come.  It is doubtful as to whether or not real estate will return to the highs of 2005 which saw double digit appreciation each year.  If we do, then it means we’re probably headed for another recession as the market quite simply cannot handle another bubble.  That is the reality moving forward.

Right now, the current market is either at or near the bottom with no upswing in clear sight.  Prices will continue to go down or stay flat for the next 3-5 years, especially with so much uncertainty around how the government will get involved with trying to fix the mess that is the US housing market.

Keep in mind that life happens as we’re waiting for the housing market to rebound.  Many people move for new jobs, to be closer to family or other reasons which warrant the need to vacate the home they bought.  This means they will need to either rent the home at a loss depending on the financials or short sale the home.  There goes waiting out 30 years to realize any significant appreciation or profit during or near retirement.

Exhibit A

Homeowners who boast about making tons of money on their new investment, I submit to you exhibit A.  As always, the discussion only centers around purchase price and the eventual sale price.  As if the current market conditions aren’t enough, the chart above, is a sobering reality.  In that scenario, the home owner will need to net at least $1,073,000 on the sale, an appreciation of over $700,000.  Still think you’ll be minting money with your new “investment”?

An investment has to make, not lose or cost you money when all is said and done.  If you’re truly focused on making money as a homeowner then focus on making your “investment” produce income and not expenses.

You’re Forgetting The Tax Benefits

Am I?  Let’s take a look at that.  Scroll up and take a look at the list of expenses associated with owning a home.  Then based on your tax situation, calculate the actual monetary value of the tax deduction vs the expenses and see whether or not it makes a difference on your tax return.  For most, it does not.  The expenses of owning a home significantly outweighs whatever benefit the deduction provides.

But If I Rent, I’ll Be Throwing Money Away

With a mortgage comes property taxes, HOA fees, home insurance and other mandatory costs which make buying a home a veritable money pit.  Keep in mind that the amortization table I.E. your schedule of mortgage payments makes it so that during the early years, there really is no difference between renting and buying.

It Takes 18.5 Years To Pay More Principal Than Interest With An Amortizing Mortgage

Still think renters are throwing money away?

Furthermore, most people move every 7 years, and if you decide to move within 7 years then you’ve sunken a substantial down payment, closing costs, taxes, maintenance and repair fees, not to mention the huge amount of interest you pay upfront during that time.  Renters can also usually rent for as long as the landlord will allow or needs a renter in the home.  If a renter loses a home, there’s the option to get a cheaper rental until things get better.  When you own a home, even if your financial situation changes, you must continue to pay the mortgage payment as agreed upon during closing.

Well, Paying My Mortgage Is Forced Savings

If you want to save money, open a savings account.  The argument here is that as you pay down your mortgage you build equity which builds “savings” as you pay down your mortgage.  There’s one problem with that assertion.  A “savings account” allows you access at any time and you earn interest on the money in that account.  For the purposes of this discussion, the forced savings theory is just that, an expensive theory called equity.  When you’re ready to access the equity in your home, one can only do so via Home Equity Line Of Credit (HELOC), refinancing or selling the home.  With the exception of selling,  this ends up costing you money, a lot more money in the long run.

And that my friends is why your home is a crappy investment.  To believe otherwise is to soothe yourself to help you sleep at night.  When you wake up, the only difference is that you’ve exchanged your landlord for the bank and once you’re finished with the bank you’re now at the mercy of the state as you must continue to pay property taxes.    Say hi to your Realtor for me.

These tips really apply to anyone but since we’re focused on women’s money issues we’ll go with “single woman money tips” today.

Believe it or not your personal finance goals are very different when single.  If you’re planning on getting married in the future, now is the time to lay the foundation.  It’s OK to make mistakes now because you’ll learn the lesson and hopefully not make the same ones once you get married.  Focus on managing your money and making it work for you like a well oiled machine.

• Save at least 20% of your income
• Stash your cash away in your emergency fund (6 months)
• Create a budget that works for you
• Reduce and eliminate debt
• Set up a retirement plan
• Start saving for various money goals:  wedding fund, baby fund etc for all the associated expenses that come with these life events

All of the above-mentioned requires having a certain level of insight about your money management skills.  To that end, I came across a set of questions on Heather Lindsey’s blog and answering these questions really help you gain insight into how you view money and how your future partner views money as well.  She has slew of questions that you should ask your partner before getting married so check it out.

For our purposes, I’ve excerpted the questions about personal finance from her site:

 

• I think money is?
• Spending money is hard/easy for me because?
• The biggest waste of money is?
• The best investment of money is?
• I have [ ] in personal debt.
• I use credit cards for?
• I think car loans are?
• Saving up to buy big ticket items is?
• My savings plan is?
• My retirement plan is?
• The way I feel about tithing is?
• I hope my spouse is a: saver, spender, somewhere in between.
• On a scale from one to ten, financial security is [ ] in importance to me.
• I want to save up to buy a?
• The kind of house I want to own someday is?
• Other items I hope to own are?
• Charities I want to contribute to are?

 

Write these down and spend a few days answering them and be honest in your replies!  Usually the first thing that comes to mind is where the truth lies.  If you’re dating someone and serious enough to discuss money issues, then use this as a way to discuss their views about money.  See how well they match up with your own views.  This should help you decide how aligned you are in your respective money goals and thoughts around money management.

Looking at the list above, what is the hardest question to answer?  Why?

If you’re new or just joining us, you can recap here:

• 21 Days To Rock Your Finances: Day 1- Create A 1 Year Financial Plan
• 21 Days To Rock Your Finances: Day 2- Identify Your Financial Weaknesses
• 21 Days To Rock Your Finances: Day 3- Track Every Penny Because Every Dollar Has A Job
• 21 Days To Rock Your Finances: Day 4-Automate Your Bills
• 21 Days To Rock Your Finances: Week 1 Recap
• 21 Days To Rock Your Finances: Day 5- Make Extra Money
• 21 Days To Rock Your Finances: Day 6- Review All Bills And Expenses
• 21 Days To Rock Your Finances: Day 7 -Zero Based Budgeting
• 21 Days to Rock Your Finances: Day 8- Trim The Fat From Your Budget
• 21 Days to Rock Your Finances: Day 9 -Review Your Credit Report
• 21 Days to Rock Your Finances: Day 10- Dispute Credit Report Errors
• 21 Days to Rock Your Finances: Day 11 -Get Out And Stay Out Of Debt
• 21 Days to Rock Your Finances: Day 12 -Contact Your Creditors
• 21 Days To Rock Your Finances: Day 13: Creating An Emergency Fund

I have a love hate relationship with insurance. It’s one of those things that you hate to have but love when you actually need it. Still you hope that you never have to use it which creates this love – hate relationship which leaves you feeling like you’re just throwing away money hoping that something doesn’t happen that requires you to use it.

These are the types of insurances policies that you absolutely need if you…

Own A Car: Auto Insurance

Drive to <insert destination here>?  Then you need auto insurance and there’s no way to get around it since all states mandate that you have it.  For most people, not being able to drive a car means not being able to earn a living.  Furthermore, should you get into an accident, then you’ll need auto insurance to cover your liability, medical expenses or other damages related to the accident.  Check out how to save money on auto insurance here.

Rent A Home: Rental Insurance

Many renters overlook this policy since it’s cheap and never think anything will actually happen to their property.  Just like homeowners a policy to cover their property, renters need this to cover theirs.  You may be thinking that if something happens to your property in your apartment or rental home that your landlord’s policy will cover it.  Not a chance.  The landlord’s insurance typically covers the physical properties of the home but not your personal belongings within the property itself.

Luckily, rental insurance is pretty cheap and can start as low as $10-$20 per month.

Own A Home: Homeowners Insurance

Like rental insurance, this policy is a must have if you own a home.  In fact, this is mandatory when you a home so this is not optional like rental insurance.  Think about it, if every appliance in your home stopped working, would you have the money to to fix all of them?  Or what if your home was damaged due to vandalism or some other issues that warranted laying out a wad of cash to make repairs?  This is where homeowners insurance comes in to play.  Homeowners insurance will pay for the repairs, a new place to live – temporarily, long term or if necessary, replacing the home itself.

Get Sick: Health Insurance

Without the proper medical insurance, you might as well be one fat medical bill away from declaring bankruptcy.  If you have an ongoing medical condition that requires the consistent care and oversight of a doctor, then you’ve probably seen the bills whether or not you have health insurance.  Even if you’re in pretty good health, changes are due to an accident or other health issue, you’ll need to see the doctor.  At the very least, get a policy that covers major medical issues to avoid a large bill at the end of your treatment.

Optional But Recommended Insurance Policies

Long Term Care Insurance

Many of us aren’t thinking about actually needing this type of policy but it’s best to think about it now rather than down the line when you need it.  Should you need long term care in a nursing home or hospice in your golden years then you’ll need this type of coverage to avoid draining your retirement fund or nest egg.  This policy allows you to maintain a peace of mind about this expense that you hope never to use but will be thankful that you do should you need it.

Disability Insurance

You probably have this insurance policy through your employer, but it is a good idea to check with HR to make sure that it is actually in force.  Make certain to find out how much it covers and if it does not cover 100% of your salary then you’ll need to purchase a supplemental disability policy.  Maybe you’re thinking that your emergency fund can cover an incident should you need it.  Have you factored in how long you might be out from work?  The accompanying portions of the medical bills that will be your responsibility? It’s better to cover those possibilities especially if you are the breadwinner to avoid depleting your emergency fund trying to keep up with the related expenses.  This type of policy is typically more expensive to obtain but well worth it should you ever need it.

Compare policies and be certain that you ask the right questions around the types of disabilities that are covered, waiting periods, premiums etc.

Ultimately you need to weigh which insurance policy is right for you and your situation.  In the end, if the situations apply, not owning one could cost you more in the long run and it’s better to be safe than sorry.

Do you own every policy on this list?  If no, why not? 

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Sadly, the longer a woman stays out of work, the harder it is to get back into her field of choice. When deciding to have children, these are the issues that should be discussed ahead of time such that the proper planning is put in place to avoid issues when deciding to return to work.

We live longer, but those of us who stay at home with children to raise them ourselves also have the burden of sacrificing the time in our life during our highest earning potential.

One of the best parts about running a blog that discusses women and money is the interactions I have with women behind the scenes.  Readers, just like you who want answers to pressing money issues.  And, while I am not a financial advisor and articles written here or across other social networks and partner sites should never be construed as such, I am often able to give insight into issues that come up during our email exchanges.

A question often asked is:

“how do I gain financial independence?   I want to learn how to stand on my own 2 feet”

Why This Is Important

I think this is an important issue for women as we should be able to stand on our own so that we’re prepared for whatever life brings our way.  Yes, this can be a touchy subject, depending on who you’re talking to but an important topic nonetheless as too many women find themselves without options once their partners are no longer in the equation for whatever the reason.

Huffington Post’s Jason Alderman also published an article which speaks to the importance of women learning how to gain financial Independence:

• Women live longer than men but are much more likely to experience critical health problems that hamper their ability to work — and to pass up needed care due to cost.

• Although the earnings gap between women and men continues to narrow, it’s still significant: Among full-time workers, women’s weekly earnings as a percentage of men’s have increased from 62 percent in 1979 to 80 percent in 2009. (Those numbers represent overall average earnings in all fields, not what men and women are paid for doing the same job — although such disparities likely still exist.)

• More women than men now graduate high school and earn college degrees, but far fewer women earn degrees in engineering, computer sciences and other higher-paying fields, which likely contributes to the wage disparity.

• Women increasingly are marrying later, having fewer children or remaining childless, yet they still are more likely to live in poverty than men, with single-mother families suffering the worst disparity.

• Women are less likely than men to work outside the home (61 percent vs. 75 percent in 2009) and are much more likely to work part-time and to take time off to raise children or care for aging relatives.

What rubs me about the last statistic is that we are forced to make hard decisions like this, because let’s face it, we birth the children so by default we’re expected to take time off to raise them.  No bones to pick there but we have to plan in order to make it all work.

To that end, my comment on the Huffington Post article reads as follows:

“Women are the default partners who volunteer to take care of children when they are sick or just by default of having a child. They decide to stay at home which can have detrimental effects on their career when getting back into the workplace.

Sadly, the longer a woman stays out of work, the harder it is to get back into her field of choice. When deciding to have children, these are the issues that should be discussed ahead of time such that the proper planning is put in place to avoid issues when deciding to return to work.

We live longer, but those of us who stay at home with children to raise them ourselves also have the burden of sacrificing the time in our life during our highest earning potential.”

The Road Back To Independence

So, let’s discuss?  Whether you’re married, single or newly divorced and want to learn how to manage money properly, it’s best to start here:  21 Days To Rock Your Finances: Day 1- Create A 1 Year Financial Plan.

Understanding the minutia of money management is of utmost importance as we often think that if we make the money, the money management skills will just show up.  Not at all.  In fact, the opposite is true.  We must master before we make the moolah!  Teaching yourself these principles will give you the foundations needed to be successful.

Now let’s talk about you, the budding money making machine!

What Stops You From Being Financially Independent?

Looking at this closely will help you figure out why things are the way they are.

The replies I often get are:

“My husband manages all of it”

“I don’t know how to…I haven’t had a job in years..”

“I’ve been taking care of our kids so money was the last thing on my mind”

One of the best pieces of money advice my mom gave me years ago is that:

“Women often work hard at teaching their children the art of being independent while abdicating that responsibility to themselves”

Powerful right?

I think it’s great that we want to be there for our kids when they’re growing up but we often forget about who we will be once they are independent and don’t need us anymore.  It is often after the kids are in school or in the unfortunate event of a separation or divorce that some women think about returning to work or how they will support themselves.  And, this can be difficult.   Being out of the job market for years can hamper the job search process once they choose to return. This leads to issues around self-worth due to feeling that they aren’t able to stand on their own, financially.

If you’re planning to stay at home with the kids once you have them, create a plan that enables you to keep your resume fresh and skills updated while you do so.  There’s no reason to neglect your career during this time as one never knows what the future holds which may lead to you needing to re-enter the workforce hoping that someone will hire you once again.

Communication

Talk to your partner about allowing you to manage your money if you don’t have that arrangement in your relationship. At the very least, you should have a role in the money management aspect of your relationship.  Know where your accounts are stored, check your credit report as well as your partners and review the status of all accounts listed on the credit report to keep yourself abreast of everything going on financially.

If you’re already at this point, having stayed out of the work force for whatever the reason, then it’s time to plot your way back in.

How Do I Get Back And Stand On My Two Feet?

Go back to school.  Start there.  Did you finish college?  Do you want to go back to graduate school?  What are you passionate about that requires a degree or certificate?  Do you need to go back to school?  These are all questions that you have to ask yourself if your path to returning to the work force involves going back to school.

Start A Business.  Along the same lines of going back to school, what are you passionate about?  Do you see a need in the market that hasn’t been filled?  How can you work to fill that need while creating income for yourself?  This can include producing your own stuff to sell on Etsy or Ebay to heading a startup company.

Renew Or Update Your Skills.  If you’re in a field like myself, then you’ll need to make sure that applicable licenses or certifications are always up to date as allowing them to lapse costs more time and money.  Talk to the licensing or certification board within your field and find out what you need to do in order to maintain your skills in this area.  If you plan on applying to jobs that require a license or certification then you’ll need to make sure this is up to date.

Attend workshops and conferences in an effort to remain up to date with the current trends in your field as well.  This also gives you the opportunity to network with others which will discuss in a bit.

Volunteer or Intern Within Your Field

This continues to be my most successful piece of advice.  *pats self on back*  It has worked for me and countless others who needed a foot in the door.  Yes, this does mean sacrificing time and money but when you’re in the position of needing to prove yourself, then beggars can’t be choosers.  One of our administrative assistants did this prior to obtaining a paid position with us and it worked out nicely for her.  When the administrative assistant that she supported quit, she was able to move into her position with relative ease while collecting a new full time paycheck.

Network, Network, Network!  Did I Say Network?

I lied.  This too is a great way to land a position.  Network with others in your field.  Go to chapter meetings, join associations and go to the hosted happy hours.  Talk to others about your goals and learn to sell yourself.  Be willing to sacrifice and prove to them that you’re the woman for the job.  Talking to the right person means they can possibly put in a good word for you during the hiring process.

Find A Mentor IE Your Sisterhood of Success AKA “Personal Board Of Advisors”

Who supports you professionally when it’s time to make hard professional decisions?  Do you have a group of women or even one woman that you can turn to?  I take that back, it doesn’t have to be a woman.  Anyone who supports you and is able to provide professional guidance will do.  Women are more successful when they have mentors guiding them both personally and professionally.   Especially when when women mentor women.  Great things happen!

This starts with choosing your Personal Board of Advisors.  Some of you might refer to this as “Auntie/Big Sister in my Head”.  Personally, I have always imagined Oprah, Tyra, Beyonce and Michelle Obama as big sisters and aunties in my head, so you get my drift!

How do you choose your Personal Board of Advisors?  @ChiefHotMomma gives us some tips on getting started:

Visualize yourself in a room with all of the people who represent each place setting.  Who do you want in that spot supporting you throughout the years?

Once you’ve picked who you want in your Sisterhood of Success, chart a plan to connect with them.  This can be someone who is readily accessible or someone you’ve admired from a far.  In the latter case, do your home work and make the process easier for them.  Remember, flattery will get you what you need.  Let them know how much their work means to you and that will open the door to discussions around lending their time to help make you a success.

Once you have a plan stick to it!  Remember, consistency is key, once you’ve established the relationship with this person, keep the lines of communication open and be flexible.

What are your thoughts on women seeking advice on how to get back on their feet, financially?  What tips do you have?  Stories to share?  Any encouragement or advice is much appreciated!

This post is first in a series discussing the many ways in which you can work from home while spending more time with children and family while pursuing other interests. Please submit your stories if you are currently working from home or have a telecommuting arrangement with your place of employment.

This article from Squidoo, Legitimate Work From Home Jobs is full of great information about opting out of the rat race and doing so as long as you have an internet connection.

Check out the following companies hiring work at home agents:

Freedom Telework

Freedom Telework has a reverse bidding structure – you should have a business license and your own equipment. You tell their clients how much you’ll charge by the minute or hour.

Alpine Access

Alpine Access hires virtual call center agents as W-2 employees. Competition for jobs is stiff, however, they are one of the most respected in the industry.

LiveOps

Liveops is another BPO firm – you’ll be an independent contractor.

Superior Telemarketing

Superior Telemarketing pays an hourly wage for their W-2 employees to work from home.

1-800-FLOWERS

1-800-FLOWERS hires in specific regions. Their work-from-home agents are W-2 employees.

West at Home

West at Home hires home-based independent contractors, and they tend to hire on a regular basis. Again, because of their popularity, there’s some real competition to get a job with them.

American Airlines

American Airlines hires home-based reservation agents across the U.S. who have a call center close to home.

Accolade Support

Accolade Support also hires home-based agents to work on a variety of client projects.

Extended Presence

Extended Presence hires outbound callers to work on their B2B campaigns.

Working Solutions

Working Solutions hires agents throughout the US and Canada. Call center projects can include order processing, reservations, enrollments, customer service, sales, market research, technical support, etc.

Things to Consider:

Fees. Some companies charge start up fees, training fees and/or equipment fees which you are responsible for since you will be working as an independent contractor in most cases. I will cover the pros and cons of this in an upcoming post. Make sure that your cost-benefit analysis puts you ahead in a fairly short amount of time. For example, I wouldn’t pay a $550 set up/equipment/training fee for a job that pays $8/hr.

Time Management. While working as an at home agent last summer, I found it became difficult to remain productive since I wasn’t commuting and my work didn’t have set deadlines attached. I had extra time on my hands and I tend to work best when I am under pressure to meet a deadline. Be mindful of any decreases in productivity as you transition into telecommuting.

Company Culture and Expectations. Pay attention to company culture and adapt, quickly. You’ll save yourself time and unnecessary frustration if you’re able to figure out whether or not you’ll fit in. While you won’t have a supervisor in your face, you will be interacting with other work from home employees typically within a forum or chat room, this is not the time to talk with co-workers about topics other than work-related issues, keep it clean and professional. This is also not the place to lodge complaints about the company, do so with your supervisor or get advice from other coworkers.

Backup Plan. Working from home is a blessing in so many ways, but it can be a nightmare if there are cutbacks due to budgetary issues or if you aren’t making the arbitrary “cut”. This happens frequently in the work from home agent field so be prepared to pursue other opportunities should this one fall through. An emergency fund is key once you make the decision to opt out of the rat race.

Reputation. Check out the company’s reputation because scams abound in this field and Ive known a few people to give up a good paying day job for a telecommuting job that seemed too good to be true. Check them out via telecommuting forums and by searching online for general information and employee experiences.

Resources:

• Rat Race Rebellion
• Work Place Like Home
• Search Tempest (Lets you search multiple states at the same time through Craigslist)

Future posts in this series will address The Pros and Cons of Working From Home An Independent Contractor, Mystery Shopping, Securing a Telecommuting Schedule with Your Boss, Freelancing and Starting a Business. If you are or have worked from home then feel free to share your experiences in the comments area.

(Photo)

This article was published on April 14, 2008 and updated on January 30, 2011.  See old comments on the original post here: work from home

Maria Sutej

A few weeks ago I had the pleasure of interviewing Maria Sutej- Regional Vice President, Sales with Avon Products, Inc.

Maria Sutej is a Regional Vice President in Sales at Avon Products, Inc.

 

Maria leads a team of professionals with cross-functional skills and experience focused on defining short and long term measures related to achieving annual sales goals, and provides stewardship in the implementation of global business strategies.

 

Maria began her career in 1983 joining Avon as a District Sales Manager. She quickly ascended through the sales ranks holding positions as Field Trainer, Division Sales Manager, and Field Business Unit Leader. During her assignment as Division Sales Manager in Tennessee, she made Avon history by ranking in the top 10 percent in sales growth for eight consecutive years. In 1996, Maria was promoted to Region Vice President.

 

Maria currently serves as a board member for Emory University’s School of Medicine and The Winship Cancer Institute.  She has been a past board member for several organizations including Women Work! and The Partnership Against Domestic Violence.  In recognition of her leadership and community involvement, Maria was once named one of Georgia’s 100 Most Powerful and Influential Women.

 

Maria defines her career as a direct result of successfully building relationships of mutual respect and high expectations … “It is a privilege to help others by offering opportunities to people who want to expand their options and improve the quality of their lives.  Avon makes it possible for me and thousands of other men and women to do just that every day.”

 

Maria earned a B.A. from Appalachian State University, and was honored in 2001 with their Distinguished Alumnus Award.   She and her family currently reside in Dunwoody, Georgia.

Using direct selling opportunities to be a viable opportunity for women

Maria discussed direct selling opportunities as never being more relevant for women than any other time.  Avon brings us products that are reasonably priced and with a longstanding brand and name recognition for over 125 years, everyone knows Avon.  She describes the opportunity as easy to make money while not disrupting your schedule.

This is an opportunity that can go from full time selling to a small group of friends and family or customers.  One of the biggest impacts that Avon can have is to see a woman who has been laid off then utilize the tools within Avon to build a pretty size-able business.  However, fear of rejection can get in the way of this as some women don’t want to feel that they are pushing a product on to their friends.

We all have that annoying friend who sells something but doesn’t know how to pitch it in a way that doesn’t feel that every encounter is used by them to sell a product.  Right?

Avon Success Story at a Glance

“My layoff from my corp job was the best thing that ever happened to me”

Linda is inspiring because she made her lay off pay off!   Laid off from her corporate job,  she took the opportunity to build something that is her very own and now sells at the President’s Club level!  There’s no doubt that this is a woman that learned how to create financial freedom for herself.

The Opportunity

A new representative can start with AVON and build with customers only or she can arrange it in such a way that she builds into leadership and mentors other sales reps.  When getting started, Avon gives real life examples of women who made it to the top within Avon as a representative or within sales leadership.  You don’t have to let go of your current job to start Avon, the beauty about it all is that it can be done together.

As your earnings grow, then you can get your business to the point where you can let go of the 9-5 or FT job.  This liberates women from the ties of corporate job that requires them to work 9-5pm with no flexibility.  Avon affords them the opportunity to pursue their life goals while making it a financially rewarding venture.

What questions do you have about getting started with Avon?  Have you tried direct selling in the past?  How was that experience?

Disclaimer:  I am a paid brand ambassador for AVON. My views are my own and do not necessarily reflect the views of Avon and its affiliates.

Creating an emergency fund is critical in being able to maintain financial stability.   We often hear and read that creating an emergency fund is important but what’s hardly discussed is how to go about doing so.  Let’s look at a few ways to create your emergency fund.

Now if you’re thinking to yourself, how on earth will I do this if I am in debt or having financial issues?  Let’s take a look at that:

Getting Started:

1. Cut back on spending-drastically.  Everything that you do not need is extra and you don’t need the extra while creating the emergency fund
2. Cut up the credit cards.  This is often hard to hear but if you find yourself paying a larger credit card bill every month then this is absolutely necessary
3. Get frugal and start tracking your spending closely.  Every penny counts.
4. Put away money here and there until you get to the first milestone of $1000
5. Once you’ve saved $1000, then you can move on to save towards 3-6 months of income

Tips To Maintain and Fund Your Emergency Fund:

Get a Part Time Job

This is often one of the best ways to get a head start.  Every little bit helps, especially if you’re able to find a job that doesn’t require you to find childcare such as a work from home job or freelance writing that you can do from home.

Save Money On Current Expenses

• Auto insurance
• Check out this post on how to save more money on your auto insurance bill
• Mortgage/Rent
• Refinance your home if possible or find a cheaper place to live.  If your living expenses are expensive then starting here will give you a significant boost.
• Utilities
• Get a programmable thermostat
• Shut off the high power appliances like your flat screen TV, computers or other unnecessary appliances at night and during the day when you’re away
• Credit card interest rates
• Never hurts to ask right?  Call the credit card company and ask for a lower interest rate based on paying on time.  This lowers your monthly payment and overall interest repayments
• Groceries
• Check out this post on saving more money on groceries by learning how to eat at home with what you already have

Stop Eating Out

When eating out with friends, the final bill can easily get out of hand.  Think about it the next time you sign the check, this money could have been used towards your emergency fund or better yet, pay down on your debts.

Cut Back on Unnecessary Personal Items

I am personally addicted to bath and body products so this is my weakness.  Makeup comes in a close 2nd so I try to stagger my larger purchases or I just don’t buy them at all, outside of the necessities.  But you may have other personal items that blow up your budget each pay period.  Take a closer look at those things you think you can’t do without.  You might be surprised how much money you’re spending on them.

Bank Your Tax Refund

If you’re getting a tax refund in the first place you’re losing.  Thou shalt not give the government an interest free loan for 1 year.  If you’re struggling to make ends meet and have a tax refund coming to you then you may want to revisit that issue.  You can actually start now by adjusting the deductions on your W2.  Paycheckcity.com is a good place for you to start.  Better yet, talk to your accountant on what’s best for you based on your scenario as everyone is different.

That said, if you do get a refund, stash it all in your emergency fund.  This gives you a nice boost and in most cases a head start towards creating 3-6 months in expenses.

Hide your Emergency Fund Account

ING Direct is a good place to start with doing this or any other Internet bank.  Do yourself a favor and don’t give yourself access to the debit card for the account as you run the risk of draining it during periods of high temptation.  Think about the best way to hide money from yourself so that it stays safe as you build it towards 6 months.

Think Of The Emergency Fund As A Bill

Treat this task like a recurring bill.  It has an amount and a due date that must be paid to the Bank of You Inc.  If you’re late then you add fees and penalties and if you skip a month then double is owed the next month to make it up.

Double Dipping

This has worked really well for me since I like to be able to save and pay down debt at the same time.  Set up a benchmark amount that you’d like to save and work towards it.  Once you get there, bank that amount into savings.  Then the amounts that you save after that use it towards paying down debt.  You decide what works.  So $1000: $500 might work.  Save $1000 and then use the next $500 saved towards debt.  Rinse, wash and repeat!  This reduces the anxiety about saving for a rainy day while holding on to debt.  In this scenario, you work at both.

What are your strategies for creating an emergency fund?

I consider myself to be a student of life, however there comes a time when you realize that maybe going back to school may be the best thing for your career.  A great education is priceless but for our purposes, let’s discuss a few things you should look at when deciding to take the plunge and enter graduate school.

Cost

This one is obvious.  How much will it cost you to return to school for the total time in school?  Will you take out loans or have you saved to cover all costs associated with returning to graduate school.  Make sure that you understand the real cost of graduate school.  Real costs: loans + interest, living expenses, books, tuition etc.  Don’t just look at the tuition and call it a day.

Relevance + Market Demand

When researching what to major in while in graduate school, look at the current market relevance as that will determine how much your chosen field is in demand.  For example, here in the DC Metro area, degrees in Nonprofit Management, Information Technology, Project Management and Psychology/Social Work are all in high demand.  Check the local job search engines and you’ll see plenty of positions in those fields in this area.   This is because the federal government lives here so there are more than a few contracting corporations to fuel the job market for the previously mentioned fields.   Based on where you live or plan on living after graduation, ask yourself, – will that local economy support your chosen field?

Starting Salary –> Mid Career Salary

What is the median and starting salary for your chosen field?  The best way to figure this out isn’t to Google it but talk to people currently in your field to get a sense of what the going rates are right now.  Sites like Glass Door and The Vault tend to give median averages which don’t tell the whole story.  Do your research by talking to people about current salaries right out of graduate school and mid career salaries.

Experience of Past and Current Students

This is really important!  When you talk to current and past students, discuss how they were treated by the administration and whether or not they felt that the quality of the education is commensurate with what they paid for.  I’ve always had good reviews from students so I am lucky in that regard.  However, when I checked online reviews of the schools I researched I would often get a different picture, especially for some of the for profit schools.

Years To Achieve Return On Investment

Consider the following:

• Lost years of productivity while in graduate school working part time or not at all
• Loan amounts vs starting salary
• Total amount paid back for loans vs starting salary and length of time expected in career

Is it worth it?  Crunch the numbers based on your financial situation and then decide whether or not it makes financial sense.

LinkedIn

This has been a gold mine of connections for me in that I was able to connect with so many people in my field to discuss their experiences in school, current career options around salaries and job prospects.  You’d be surprised how much people are willing to tell you as someone coming behind them in the field.  How did I get in touch with them?  I simply performed a search and most wrote back.  I even met with one woman for coffee as she told me about her experience in her PhD program.  She warned me against going back to school for a degree I do not need and it was the best advice, ever.

My Story

I spent about 2 years since the completion of my Masters degree researching doctoral programs trying to decide if it was in my best interest to do so.  As some of you may know, I am a licensed psychotherapist by trade and within my field over the last 5-10 years there’s been some significant encroachment of mid level professionals like myself upon the domain of doctoral level professionals.  In my state, we are can now perform assessments and other tasks that were once only the domain of doctorate level therapists.   So it was important for me to understand whether or not a doctorate was actually crucial to the advancement of my career.

It isn’t.

Teaching is something I was told that I would not be able to do without a doctorate, yet if I wanted to I could go back to my graduate program and teach there as an adjunct.  And, while I was accepted to a few programs, shelling out $80-$120k in extra student loans for a $5k annual difference in pay wasn’t worth it for me.  Insurance companies pay out $5-$10 more to doctoral level therapists and that sealed it.  I  also had to consider the years I would spend in school (4-7) and the lost opportunity for full time income during that time as well as the harsh reality that the increase in salary and total amount paid in student loans isn’t worth the “prestige” of having a doctorate.

This is a conversation I have at least once a month with the interns at my job as well as potential new hires fresh out of doctoral school.  They often regret the decision to go back to school as they were fed stories of prestige and promises of having dominion over mid-level professionals like myself.  Taking the time out to research this was one of the best things I did and I don’t regret it one bit.  Currently, I am now researching a career in cyber terrorism as it is something I actually moved to this area for right out of graduate school.  We’ll see where it takes me as I want to make sure the money I put out will be worth it.