Small changes you can make for a big difference

One of my favourite quotes is

“The price of anything is the amount of life you exchange for it”.

I think it was H D Thoreau who muttered those wise words. And it got me thinking.  

Thinking about how much life gets wasted on meaningless self-lobotomising activities. 

If you add up the hours you’ve spent watching mind-numbing TV, or waiting in for tradesmen, playing Angry Birds or even sleeping, it would add up to years, even decades of your life.

OK, we’ve all got to sleep and personally I love my bed as much as the next woman (or should I say man?). But I worked out that if I made a few small changes to my life the impact could be enormous.

For example, did you know that:

1. If you get up 15 minutes earlier every day you will gain ninety one extra hours of waking life in one year. That’s days and days of extra time!
2. If you save £1 a day every day for two years, you'll be able to travel anywhere in the world.
3. If you write one hundred words a day in two years you will have a full-length novel.
4. If you show real interest in everyone you meet every day, in two months you could have 60 new friends.
5.  If you over-pay on your mortgage by £20 pounds a month you’ll pay off your mortgage 20 months earlier  - and save £5515 in interest alone. (based on 100,000 mortgage over 25 years at 5% interest)
6. If you do one extra press-up every day you'll double your fitness level in 3 months.
7. If you photograph one small thing every day, after a year you'll have boosted your levels of awareness - and have an awesome photojournal.
   
8. If you donate £1.25 a week to Oxfam you will buy 288 buckets of pure, clean drinkable buckets of water a year for a family.
9. If you cut out one can of fizzy drink every day you'll lose 10 pounds in 6 months (without making any other changes).
10.  If you cut out one hour of TV from your life you would have an extra 7 hours free time a week, or the equivalent of two full days extra every month.

It all adds up doesn’t it? Small changes equal big difference. That’s exactly the philosophy beind our Do Something Different behaviour change technique. People make one small change regularly and they tell us a big shift soon happens in their life.

Today I’ve been talking on the radio about me-time. I was supporting a campaign by Palmolive to encourage women to claim back me-time. Unlike blokes, not many women have a shed to retreat to. So the idea is that we can pamper ourselves for 20 minutes a day in the shower (with their yummy Ayurituelsshower gels) and restore our health and well-being. Scented candles, nice music, petals and a glass of fizz are optional extras of course. But think about it, if you have a pampering experience for 20 minutes in the shower every day, you’ll save the cost of going to a spa…

HAVE YOU ever changed one small thing and found it's added up to a big difference?

Why scarce goods can be psychologically more satisfying...

I have two girl friends who are constantly competing to see who can find the most desirable but rare item, be it a scrap of vintage lace, ethnic bangle or piece of studio pottery. 

The most prized purchase is, I’m afraid to say, always a one-off piece that the other hasn’t a hope in hell of acquiring. Both are stylish women, but neither is massively well-off. 

So their treasure-hunting requires time, ingenuity and a dose of deviance that consists of never, ever divulging where they got something from. 

Now forthcoming research* from the US sheds some light on this particular type of consumption.

Photo credit http://mrs-sun.deviantart.com/

When people experience economic hardship they attempt to alleviate the negative feelings this induces by acquiring goods that are hard to come by.                        Research published in the Journal of Consumer Research shows that financially deprived consumers prefer goods that are relatively unavailable to others, to offset the feeling that they are comparatively deprived. Many people judge how well-off they feel by comparing themselves to others. When experiencing financial hardship people render such comparisons impossible by acquiring goods for which there is no direct comparitor.

Social comparison is a powerful psychological force. How rich, attractive or successful we feel is always relative, depending on who we are comparing ourselves with, or whether we are comparing our present self with our past self. One person may be quite wealthy, but may actually not feel well-off because a) they are not as rich as their affluent friends or b) they are not as affluent as they have been in past times.

This is reflected in the questions asked in the Financial Wellbeing Index in the aforementioned study, reproduced here:

1. Compared to my financial position last year, my financial position this year is:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

2. In comparison to most of my peers, I am financially:

Much worse off 1 2 3 4 5 6 7 8 9 Much better off.

3. Compared to my material possessions last year, my material possessions this year are generally:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

4. In comparison to most of my peers’ material possessions, my material possessions are:

Much worse 1 2 3 4 5 6 7 8 9 Much better.

5. In comparison to last year, my ability to spend money freely is:

More constrained 1 2 3 4 5 6 7 8 9 Less constrained.

Sharma & Alter (2012) used this scale to measure how deprived the participants felt and found that deprived consumers preferred scarce (vs.abundant) goods when those goods seem relatively unavailable to others in their environment. If you find yourself selecting low scores on these items you may have a tendency to over-compare.

Comparing yourself with others is clearly a dangerous process and one unlikely to have a happy ending. Rest assured there will always, yes always, be someone better off or more beautiful than you. 

Women’s magazines are a classic example – after being saturated with images of impossibly perfect airbrushed models the female reader inevitably feels worse about her looks. 

And when it comes to the state of our finances research suggest that consumers might seek scarce goods for retributive purposes. By acquiring goods that others can’t get hold of people can “get even” with their better-off peers. By consuming limited resources, they necessarily deprive others from enjoying the same privilege. Once girl friend A has snapped up that classic french 1920’s beaded clutch, there’s one less out there for girl friend B to chance upon.

The authors of the US study claim that deprived consumers acquire scarce products to set themselves apart from their financially superior peers. By stressing differences between themselves and those peers, consumers can mitigate feelings of self-threat, because after all evaluations based on social comparison are only meaningful when they are formed relative to similar peers. In other words, acquiring scarce goods might diminish feelings of inferiority relative to financially superior peers by creating the sense that those peers are no longer suitable comparison standards. Then again there's just that satisfying feeling that comes from being an individual and not being swept along with the masses.....

* JOURNAL OF CONSUMER RESEARCH, Vol. 39 ● October 2012

How to dress for success

Watch a video here about first impressions and how to dress for success.....



it's great to see our University of Hertfordshire research featured in this video, which reinforces the message conveyed in an earlier post that dress disasters can ruin your job prospects ... without you even knowing it.

10 reasons why men need Sheconomics

Don't let our pinkness put you off - we have lots of bloke-friendly stuff going on. Here's why we think men need Sheconomics too:

·      1. Because research shows your investments would surge if you used your feminine side a tad more. No need to greet your latest dividend with a tearful acceptance speech, it's just about not being over-cocky, a risk-taker or one of the boys. More diverse portfolios, caution and not over-reacting to a volatile market explain why female investors outperform men consistently.

·     2  Because you could learn how to dress for success. Drop that favourite well-worn brown suit off at Oxfam and let someone with a tape measure get intimate with your inside leg. Seriously, people do judge you by what you wear. A lot. Men in bespoke suits are judged to be more successful, confident, trustworthy, flexible and higher earners than their off-the-peg counterparts.

·     3. Because you could suss out how to have cool, non-confrontational conversations about money. And you could have a better, happier home-life if you did so. There are tricks and strategies we can all learn that will make money-chat nicer. No issues. No arguments. Hugs optional.

·    4.  Because you could be a better Dad.  Without realising it parents play more roughly with boy babies than with girls. They let boys explore more than girls and use more emotion words with their daughters than with their sons. Swat up on the significant but subtle ways you can give your daughter the kind of start in life you are unconsciously giving your son. Get wind of some good Sheconomics strategies for raising kids.

·      5. Because you’ll do the right thing by her in the event of the unmentionable happening.

     When multi-million selling author Stieg Larsson died suddenly at 50 his estranged family, and not his life-long partner Eva, inherited his fortune. Eva's even having to fight a legal battle to stay in their apartment. No-one wants to think about death but not thinking of those you'll leave behind is dumb.

  

·     6. Because you overwork your logical left brain and neglect the poor old right. Ever thought about which side of your brain is managing your money? Intuition can be a useful tool, but seems to be the reverse of logic. The field of behavioural economics is obsessed by these concepts because humans are rarely rational decision-making machines. They fall victim to flawed logic, emotional reactions and cognitive biases.

·      7. Because you could realise some of the hidden forces behind financial success, and why it helps to be tall, left-handed and tidy. 

      Yes, we said tidy. No, we’re not nagging. It's just that taller people earn more than shorter people and left-handed people earn more than right-handed people. Things that are hard to change. But people with tidier homes do earn more than people with messy homes. Reason to not drop those socks on the floor?

·      8. Because if you’ve ever suffered death-by-dinner-party you’ll see how company boards make the same mistakes as very dull hosts. Mixing up the guests brings livelier conversations and new perspectives. About 10 years ago Norwegian boards were mostly made up of men with very similar views and backgrounds who went hunting and fishing together. This meant there was a huge risk of group-think in the boards’ decision-making processes, and a real lack of diverse perspectives.

     Adding just 3 women to boards has been shown to increase the company's bottom line by 40% and boost the country's economy.

·      9 . Because emotional intelligence is just as important as IQ. You’ve always known that IQ isn’t all it’s cracked up to be - there are better ways of selecting the right bunch of people to work with.

     Studies show the most effective groups listen to each other, share constructive criticism, have open minds, are not autocratic and use conversational turn-taking to good effect.

·      10. Because we can all learn something from the bagel man. You can tell how much people like their bosses and their work from how much dosh they drop in the honesty box. It could be a good metric for getting to know the health of your company and the happiness of your employees. Honest. 

 Final word from a lovely friend of Sheconomics, Alan Newman of the Finance IT Network:

• "There's probably some merit to the accusation that the financial services sector is 'male, pale and stale'. The insights from this book - co-authored by a Professor of Psychology and a Financial Coach (who left IFA boredom behind her) - should be compulsory reading for us blokes."                        

I don't wanna talk about it...

“It’s the one topic we can’t bring ourselves to talk about” I heard Jenny say on Woman’s Hour last week. She was talking about incontinence. I won’t say more here – this isn’t weeconomics – but it reminded me of that other big taboo: money.

Did someone mention the M word?

Women aren’t as comfortable talking about their earnings as men, according to new research from the Money Advice Service. But neither sex is too fond of shouting their salary from the roof-tops. Just 5% of women and 10% of men would tell a stranger how much they earn.

We have our hush-hush places too – one in four of us feel it’s wrong to discuss money at the hairdressers (where we'll share every other intimate detail of our personal life), others wouldn’t bring it up at a party or down the pub with friends (28%).

As I've said in earlier posts, it really is time we tackled this taboo. Why? Because money secrets wreck marriages and make people downright miserable. And money problems and mental health problems seem to go hand-in-hand.  According to the Royal College of Psychiatrists:
 - One in two people with debts has a mental health problem.
 - One in four adults with mental health problems is in debt.
And being in a financial mess can make you feel:

• As if everything is out of control and there's nothing you, or anyone else, can do about it.
• Hopeless, especially if you have debts that are growing.
• Embarrassed to talk to anyone about your financial situation.
• Guilty - that the problem is your fault, even if it's due to mental or physical health problems.
• Anxious and depressed.

Talking about money problems is the first step to sorting them out. Our friends over at the Money Advice Service are running a Money Chat campaign. They want to break down the big taboo and get people talking more about money*.

They even have this fab Money chat map so you can view the regional figures

So, if you have been keeping mum about money, maybe we can help you open up?

Check out the downloads section of our Sheconomics website for useful tip sheets.

Tip sheet no 5 is about How to Talk to Your Partner about Money and Tip sheet no 6 is How to own up to a Money Problem.

Plus in Sheconomics we devote a whole chapter (Share Financial Intimacies) to tackling the great taboo. The money taboo that is. Sorry - we can’t help with incontinence, although you may be able to catch the programme again.

*The Money Advice Service has Money Advisers available on the phone or face-to-face. To help get the conversation started, there’s a personal action plan produced by their free online health check, which identifies a list of short and long-term money priorities. Available online at moneyadviceservice.org.uk and on the phone via 0300 500 5000

Male entrepreneurs using social networks as an extension of the boardroom

Should a woman behave more like a man to make it to the top?

How much are male and female traits visible through social networks such as Twitter?

Here are a couple of tweets, one from a male and one from a female entrepreneur. Can you tell which is which?

I feel very sorry for you on the score last night! Want a tissue?

Just heard a fab quote re the role of a parent “our job is to give children the courage to go out into the world & a home to come back to”

OK, so it was dead easy to spot. The first was from a man and the second from a woman. 

But is that generally true of male and female entrepreneur tweeters or do female entrepreneurs have to emulate male traits? 

My team at the University of Hertfordshire have been busy researching just that…..

We analysed nearly 5,000 tweets from twelve influential entrepreneurs over one-month. 

Our results showed that male entrepreneurs tend to use social networking sites to compete and dominate whilst women use them to build networks.

We also showed that men ‘tweet’ about business 46% more than women.

In fact even their more casual conversations involve business. So they really do have one-track minds. A business track.

And when it comes to blatant self-promotion, the males again come out as the top tweeters.

They do a lot more of blowing their own trumpets, sounding off 61% more self-promotional tweets than their female counterparts.

Female tweets are more supportive, friendly and more lifestyle-y.

In fact the female entrepreneurs put out more than twice as many tweets about their non-business life than men. 

These top women also tweeted 77% more supportive and conversational content than males. They were more likely to join in an on-line chat, respond to others with a friendly comment or messages of support.

It seems from these new findings that men are using social media as an extension of the board room or the sports field - where they typically like to lead the competition and dominate. 

Women seem to use social media far less aggressively, using it more socially to build contacts and network with people, as is often the case in the ‘real world’. Yet many are matching their male entrpreneurial counterparts when it comes to generating wealth.

The top 5 entrepreneurs by how much they tweeted in one month (Jan-Feb 2011) are below. They have an estimated combined wealth of £1.28billion*

1. 

             1. Michelle Mone 1,030 tweets
2.    Lord Sugar 965 tweets
3.    Duncan Bannatyne 660 tweets
4.    Theo Paphitis 505 tweets
5.    Martha Lane Fox 275 tweets

*  According to data from the Sunday Times Rich List 2010 excluding Michelle Mone worth estimated £50m from http://www.guardian.co.uk/lifeandstyle/2010/sep/12/michelle-mone-lingerie-71-degrees-north Martha Lane Fox estimated £20m http://www.independent.co.uk/news/world/africa/net-multimillionaire-martha-lane-fox-seriously-injured-in-car-crash-in-morocco-562168.html

  

·       The University of Hertfordshire was awarded the Times Higher Education ‘Entrepreneurial University of the Year 2010’

Poorer men prefer larger women

Following the recent tragic death of the anorexic model Isabelle Caro, fingers have been pointed at the fashion industry and the media who brandish images of these emaciated forms.

But did you know women’s preferred body sizes are determined by men’s economic circumstances?

Ideals of female body shape vary across cultures: Men in cultures with scarce resources tend to prefer heavier women, whereas men in cultures

with abundant resources prefer thinner women. In all cultures, men who are hungry will select a larger female shape as their ‘preferred’ size. That, apparently, is all down to perceptions of resource scarcity.

Also just making men feel they’re poor makes them prefer a larger woman.

US researchers* made men think about how much money they had on them. Those who realised they were-cash-strapped preferred heavier women.

They also asked men about their wealth. Some answered on a scale from 0 to $500, others on a scale from 0 to $400,000 (a scale that makes people feel relatively poor). Sure enough, men who responded using that scale subsequently selected larger females as their preferred shape.

What’s more interesting is that it doesn’t work the other way round. Women’s preferred male shape is unaffected by how hungry or poor they feel.

Ben and I have been discussing this at length. He’s not keen on all those evolutionary explanations, which I have to admit are a bit too convenient and can’t be refuted empirically. He reckons it’s because men are more visually triggered – this renders them more susceptible to priming effects. I would add that maybe women just aren’t that shallow.

Maybe one good thing that will come out of the age of austerity is that the more men tighten their belts the more women can loosen theirs.

*Psychological Science 2005 16:167. Leif D. Nelson and Evan L. Morrison

The Symptoms of Resource Scarcity : Judgments of Food and Finances Influence Preferences for Potential Partners.

10 easy money actions for the financially challenged

...or the financial phobic.

None of these are scary. Or difficult.  But they could make a huge difference to your financial health.

Decide how many of them you will tick off this year: 

1.    Get on-line banking (if you haven’t already). Stick a weekly reminder in your diary to check your statement. Marvel at (or bemoan) where the money goes. Tackle leaks.

2.    Charity shop. Devise a whole new image based on charity shop finds. You can always restyle or dye stuff. Fashion victim = financial failure.

3.    Perform some plastic surgery. Cut up credit cards and just use cash. Slash and burn store cards, show them no mercy.

4.    Learn about compound interest. It’s how investments grow and why debts go ballistic. Spend 5 minutes getting to grips with it here. Feel immediately enlightened. Smug even.

5.    Sweep some money into a savings account. Every month. Do it by direct debit. You won’t miss it going out but you’ll love it piling up.

6.    Ask someone for money. Now. Nag your boss for a rise. Call in debts. Haggle for a discount on your next purchase. Take something back, demand a refund.

7.    Make kids earn money. Stop being their cash cow. Make them get a job or sell old toys on eBay. Threaten to charge them rent. If they’re over 18 charge them rent. Be less tough on toddlers.

8.    Deal with credit card debt. Transfer to a 0% interest card. If your savings earn less interest than you’re paying on your card, use them to pay off the debt.

9.    Play the long game. Give your future self a gift. Boost pension payments (or start one). Over-pay on the mortgage. Take out a 5 or 10 year high-interest investment.

10.  Stem the flow of wasted money. Unused gym memberships. Forgotten magazine subscriptions. Thirsty cars. Taxi/takeaway/smoking/alcohol habits. Put what you save into a separate account, just for you.

How to think like a rich person

1. Put a high value on yourself and the world will meet it. Cultivate a sense of worthiness.

2. Focus on where you’re going. The rich have clear-cut goals that steer their every activity and decision.

3. Don’t be a stock-botherer. Invest and let alone. If you constantly monitor investments you’ll over-react to market instability.

4. See mistakes, setbacks and failures as part of life. It’s how the high-achievers learn and grow.

5. Believe that abundance is a natural state for you. Let your inner reality create an image of yourself in limitless terms.

The buzz at Birmingham

What an amazing time I had today at the Women on their Way to Wealth conference. I had such a positive response to my keynote talk from so many women and the sheer energy in the room today was palpable. I'm sure anyone looking down from outer space would have seen Birmingham glowing!

The combined wisdom, humour, creativity and vision of 150 go-getting women is a powerful force indeed. Thanks so much to Jo and Lisa at Women on their Way for putting on a really inspiring and uplifting event.

Wise words from Johanna Waagfjord, one of Iceland's top businesswomen, were "Just say Yes", reinforcing Jo's message that women are prone to overthinking and need to just take the plunge now and again.

Talking of 'plunge' I am still smiling at Jo's slip when she mentioned that she was 'hugely breast'. She meant blessed but hey, we all know about post-natal hormones and she's a wonder.

At book-signing a few different inscriptions were requested but the best one was from one woman to her friend - "JFDI" (Just f*cking do it)!

And thanks to Deb Davies for telling all mothers to say "You're on MY bus". The perfect mantra for all mums whose kids give them the run-around.

It pays to start early

A big bash was held in London this week to celebrate top female fund managers. Its star was 58-year old American, Mina Gerowin, who (managing a £2 billion fund) posted positive results last year whilst many of her male counterparts racked up losses.

As delighted as I was to hear about these alpha females giving the men a run for their hedge-fund money, I was mindful of a report earlier this year showing that most women in the city still receive significantly lower salaries and smaller bonuses than men.

So how did Gerowin rise above this?

Apparently her interest in investing came when she joined her New York school’s investment club as a nine year old.

I think UK schools missed a trick there; 50 years ago the only after-school activity our schools offered was detention.

There's more on offer nowadays but I suspect not many nine-year olds are investing. Given the demise of the state pension it wouldn't be a bad idea though.

I can see Mums sending kids off to school with their dinner money in one pocket and their pension money in another before too long...