8 tips for money smugness

Men are from Mars but sadly that doesn't make them all chocolate-flavoured.

Someone asked me again today about the differences between men and women. Money differences that is. It's not that women are worse than men with money. Just different. That's why we wrote Sheconomics in a female-friendly way. 

We know that women have different money emotions to men. That many women find money boring. Scary even. 

We try to cut through all this in Sheconomics. We even suggest that the high that comes from a good money workout is on a par with chocolate. Well nearly.

It's not about who's best, just about accepting differences.

I thought I'd repeat the 8 most common mistakes that women make with money. These are the ones that come up time and again in our Sheconomics research. 

Here are the mistakes and some advice about how to get over them - so you can feel smug about your money.

1. A misplaced sense of loyalty. 

Whether it’s a mortgage, bank account or mobile phone contract, women are often reluctant to switch. 

We say: Be loyal to your friends but as promiscuous as you like with financial providers. If they don't give good service, or good rates, it's OK to move on. You don't have to please them or be a loyal customer.


2. Fear of financial products. 
Liking tangible investments, such as property, over stocks and shares can mean women miss out on money-making opportunities.

We say: It's not rocket science. Don't put up with people who over-complicate products and hide behind jargon. Insist on plain-speaking and straightforward explanations.


3.
Being money martyrs. Putting the needs of others first. Helping out the young ones when we should be providing for our own financial future. 
We say: OK, look after the children. But it doesn’t help anyone in the long run when women sacrifice their own needs for others. Develop a selfish streak.


4. Low self-belief. Not asking for money – pay rises/fee increases/better deals – often means women don’t get what they’re entitled to. 
We say: Don't wait for someone to notice how hard-working you are. Tell them. Then ask them to pay you what you're worth.

"Shoes? I popped out for a pint of milk."

5. Letting shopping become an emotional habit. OK, this is where women can out-do the men with a need for regular retail fixes. 
We say: Shop because you need the goods, not because you need the buzz. Find other non-materialistic ways of getting your kicks. Do something different.


6. Not managing career break finance. Women lose out because taking time out to have kids often means they make fewer NI or pension contributions.
We say:  A career-break needn’t mean a pension break. If your partner’s salary can cover two pensions, it’ll ease the strain in later life. Having a family is a joint responsibility.

"Where did you say you've hidden the savings again darling?"

7. Allowing others to make the big financial decisions. Women are great at day-to-day budgeting but can sometimes suffer from decision paralysis when it comes to bigger financial decisions. 
We say: Get involved in the decision-making and share the financial management. Why give someone else control over something as important as your finances?


8. Indulging in rescue fantasies. You know, the voice in your head that says "I'll just carry on like this, something will get sorted out."
We say: Don’t kid yourself. What if that someone doesn't come and save you? What if, when he does, he's got his own debts? Be a big girl and take control.

It's OK to look this smug if you're in control of your money.

Have you read the results of our survey on asking for money at www.sheconomics.com?
More than eight out of ten women don't like asking for money. Even more say they find it embarrassing. 
Perhaps the picture above captures their deepest fears? 
Many female-led businesses are underfunded at start-up, women are less likely to seek angels funding and when they do they ask for significantly less than men. 
Our website also has tips on how to ask for money - it's really no laughing matter!

It's good to talk sheconomics

I loved talking to the Trustees’ Council of Penn Women in the luxurious setting of the RAC Club (not a fluorescent jacket in sight) on Pall Mall last night. Those RAC people are amazing, they can not only fix your car but also serve up some damn good crudites ….

The TCPW are a feisty bunch of bright, high achieving women of all ages and I learned a lot from their comments and questions during our lively session.

We had fun with some of the behaviour economics problems from Sheconomics. To a woman they got the intuitive reasoning problem right (three out of four women usually get it wrong) but they did let their emotions intrude on the ultimatum game. OK, shows they place high value on fairness and social co-operation so it came as no surprise to learn that many work in philanthropic or fund-raising roles.

On the subject of females asking for money, one woman said she can shamelessly extract millions of pounds from others for her cause, but can’t ask for a pay rise for herself. That captures the tendency of the female money psyche to put the needs of others first. It’s what makes us loyal friends and caring individuals, but if we’re not careful it could make us poor too. 

Budget 2010: Simonne's summary

Why does the Budget have to be as dull as dishwater?

One twitterer (is that a word?!) captured my sentiment in the following tweet:

"Alistair Darling has made as much of an impact as farting at thunder!".

There was lots to grab the headlines to keep most of the electorate sweet, unless you’re a cider drinking, chain- smoker buying a property worth over £1m!

From what I can see he played it really safe, not giving the Opposition any ammunition in the run-up to the election.

Anyhow, here’s a brief summary of some of the highlights:

· ISA allowances to increase in line with inflation from 2011 (maximum £10,200 from 6 April).

· 0% stamp duty threshold to rise from £125K to £250K for first time buyers.

· Stamp duty to rise from 4% to 5% for properties above £1m.

· Child tax credit to rise by £4 per week for one and two year olds from 2012.

· Cider duty to increase by 10% above inflation, compared to 2% for other alcohol and 1% on tobacco.

· A £2.5bn one-off growth package for small businesses, paid for from existing spending and banker bonus tax.

· No change on the amount you can inherit without paying inheritance tax.

· No change to capital gains tax other than reducing the tax rate to 10% for the first £2m of gains for entrepreneurs.

· Aiming to improve financial inclusion, by making sure everyone can have a basic bank account.

· Support for under 24s out of work for more than six months.

• Mortgage support for the unemployed for six more months.

Hope that was fun reading! Lots more available from the BBC website.

Thanks, Simonne, for summing up for us.

I'm off for some strong cider now...

Do you hate asking for money?

Why are women so rubbish when it comes to asking for money?

Bill Morrow (the inspiration behind angels den) told me recently that when entrepreneurs have to pitch to investors, the women rarely ask for ­enough money.

This led me to thinking about the psychology behind asking for money. The very thought of it makes many women cringe with embarrassment. Even if we don’t grovel to someone clutching a begging bowl, the simple fact that they have the money we need shifts all the power their way.

The truth is, shrinking Violet won’t drive a hard pay bargain for fear of upsetting people.

Women are socialised to be people pleasers; we put the feelings of others before our own needs. Men are likely to see the financial benefits as worth a few moments of discomfort.

I’d love to get to the bottom of this sex difference.

Please help me by taking part in a short survey.

It’s just 7 quick questions and there’s a chance to win a £25 Amazon voucher.

Click here to take part.

Also don’t forget Sheconomics tip sheet number 2 - How to Ask for Money – can be found on our website.

Please, Sir, can I have some more?

Stories about sexism in the city have cropped up everywhere this week. Women, it seems, earns far less than men in the city and encounter sexual discrimination more befitting of a Victorian workhouse than the 21^st century finance world.

A thought struck me. Yes, there is sexism out there but women also have to guard against another enemy – self-sabotage. If women undervalue themselves, the world will undervalue them. Many women still confess to being uncomfortable with the concept of success. And we live in a society that still sees thrift and 'making do' as a highly prized female trait.

Women, research has shown, are twice as likely as men to volunteer (it’s good to give to others but also important to value your time) and two and a half times more likely to dread asking for a salary increase.

How should the modern woman knock down the barriers set up by society and her own self-limiting beliefs? Here’s the Sheconomical way to succeed in those negotiations:

• · Recognise your true value
• · Make the first move (be proactive)
• · Prepare your case
• · Aim realistically high
• · Don’t settle for less

More on this is our chapter on self-limiting beliefs in Sheconomics.