Chick in Charge of Money

A Chick in Charge of her money. Let that sit with you for a moment and try to visualize her... from her hair to her shoes... her home, her income, her investments. My first question for you is this: Do you like her? Are you envious? Inspired?

If you are picturing a wealthy well-dressed Jane meeting with her broker in a corner office, I now feel completely inadequate. But, if you are seeing Linda, sitting at her kitchen table surrounded by bills and checkbooks, a woman who is having to make hard choices about her spending, now we are in a reality we can all appreciate.

My idea of a chick in charge of her money has a very clear understanding of her priorities and her budget reflects those. She knows that she never wants to rely upon her kids in old age, so she fully invests in her 401k. The tough part is that Linda cannot do that and save for her kids college expenses. She might feel completely lousy as a parent for this, but she has a reason to stick to her plan. If she were completely focused on making more money for the college fund she would be working longer hours and not be able to actually BE with her kids while they are growing up. She also funds a family vacation each year. That money could go to the college fund, but then her kids would never have seen the Grand Canyon or gone to Washington D.C.

She is OK with the plan because it is a plan, not a failure to plan.

For those without the kid factor, the tough choice might be to go on a weekend trips or to fancy restaurants with "better funded friends" instead of sticking to a debt payment plan. The point is this: If you haven't come to terms with what is really important to you, you find yourself making bad in-the-moment emotional decisions about money.

Think about your home. Are you in a big house with big maintenance bills just because you grew up in a house like that and think it is the proof of your success? Is travel more important to you but now out of reach because of your house obligations? Maybe, just maybe, a far less expensive apartment could give you the freedom to travel? Would you be embarrassed to say that you don't own a big home on a nice street?

Do you continue to invest in a business that has become a complete drain on your bank account and spirit but can't stomach the idea of throwing in the towel?

Let me say that I don't have my finances all tied up in a pretty bow, not by any means. I struggle with impulsive behavior all the time. But I am working on being less emotional about my money.

I was interviewing a master gardener for the show and he contrasted American and Japenese home gardens. In America, we plant our most beautiful flowers right up against the front of our houses. A Japanese woman would find this to be crazy, she can't see them from her kitchen window. She plants her most prized flowers AWAY from the house so that SHE can enjoy them best, not her neighbors or strangers driving by. Hmmm... Are you making financial decisions to impress or please others, or are you creating a life picture that you prize?

That is a Chick in Charge of her money.