If you are looking for ways to further cut your costs of everyday living, then this article is for you!

25-ways-to-waste-your-money: Personal Finance News from Yahoo! Finance.

Investing in Yourself: You’re Worth It!

From the desk of:

Michelle Rogan

Trust & Estate Services Manager

ESSA Bank & Trust

Start Saving Early

×          Establish a personal savings account for emergency expenses.

×          Participate in employer-sponsored retirement plans.

×          Contribute to Individual Retirement Accounts (IRAs) – Traditional or Roth – depending on tax advantages; consult your tax advisor for plans for self-employed.

×          Consider working with a financial planner or advisor.

×          Time is really on your side if you save while you are younger.

Understanding and Calculating Your Net Worth

×          Knowing what you have now will help you develop a plan for your future.

×          Income Sources

×          Expenses: Fixed and Variable

×          You need to know whether your net worth is negative or positive in order to move forward in your financial and personal life.

Why Women Need to Save More for Retirement

×          Women will generally outlive their husbands by 15 years according to Women’s Institute for Financial Education (www.wife.org).

×          Women receive only 54% of pension income as men do according to the Older Women’s League.

×          Women tend to work less and earn less than male counterparts, approximately 76 cents on the dollar.

×          Women are more likely than men to leave the workforce to care for children or a sick elderly parent.

Develop a Retirement Strategy

×          Establish a time horizon.

×          Understand risk tolerance.

×          Establish a long-term goal for retirement and imagine what it will look like in the future.

×          Know what you have, where it is, and how it is invested.

×          Review your investment statements regularly.

×          Do not react to short-term changes in the economic environment.

×          Prepare to stay the course; retirement is a process that is long term and involves careful planning.

Choosing the Right Investments

×          Different life stages require different types of investments.

×          Understand investment risk versus reward. How much risk are you willing to take?

×          Learn the difference between stocks, bonds, and mutual funds.

×          Consider asset allocation when reviewing your portfolio.

×          Recognize the importance of diversifying investments in your portfolio.

Understanding External Factors

×          Expenses will continue to rise and have an impact on your savings.

×          Pay attention to inflation, health care costs, and the economy in general.

×          Consider long-term care insurance to hedge against the rise in private home care and nursing home costs.

×          Plan for increases in expenses and spend wisely.

×          Look for ways to lower expenses by shopping various service providers.

×          Maintain a budget and play an active part in the savings process.

×          Monitor your savings plan regularly.

Deciding to Retire

×          What does your retirement look like?

×          Do you have a business succession plan?

×          Do you have enough resources to retire?

×          Take advantage of financial calculators available on the Internet.

×          Review what benefits are available to you, including pensions, 401k, insurance coverage, and social security.

×          Review your social security statements for accuracy.

Quick Tips

1.       Start saving early, monitor your investments, adjust risk and asset allocation as retirement approaches, and stay the course.

2.       Calculate your net worth at least annually.

3.       Update your goals for savings and retirement regularly.

4.       Make sure beneficiaries of retirement plans, insurance policies, and annuity contracts are reviewed and updated as needed.

5.       Update your business plan annually.

6.       Do not try to time the market.

Other Resources

×          Choosing a Retirement Plan for employees of tax-exempt and government entities: http://www.irs.gov/pub/irs-pdf/p4484.pdf

×          Cash Flow Planning for Life: http://www.schwab.com/public/schwab/research_strategies/market_insight/financial_goals/financial_planning/cash_flow_planning_for_life.html?cmsid=P-2378093&lvl1=research_strategies&lvl2=market_insight&

×          Small Business Retirement Savings Advisor:

http://www.dol.gov/elaws/pwba/plans/final.asp

×          Retirement Savings Calculator: http://www.schwab.com/public/schwab/planning/retirement/retirement_savings_calculator?cmsid=P-2294686&lvl1=planning&lvl2=retirement

×          Personal Net Worth Worksheet: http://www.schwabmoneywise.com/resources/worksheets/Net-Worth-Worksheet.pdf

×          Roth 401(k) vs. Regular 401(k) Calculator: http://scrs.schwab.com/tools/schwab_roth_401k_calc.htm

×          Choosing a Retirement Solution for Your Small Business: http://www.dol.gov/ebsa/pdf/choosing.pdf

×          Introduction to Individual Retirement Accounts:

http://www.ots.treas.gov/_files/427077.pdf

on balancing her professional life and role as mother…

“It’s hard, because if I’m at work and my kids are home I wish I were with them and sometimes when I’m at home I end up on my laptop working. I’m acutely aware that this phase of being a mom is almost over and I am cherishing every moment. But what ends up getting sacrificed is my personal health – exercising and eating right.”

Erin Baehr. A Woman to Plan For….

Erin Baehr shifted in her seat as we both ordered salads at The Bistro Café on Main St in Stroudsburg.
“Sure, it’s been a hectic year, but I feel like I am a step closer to meeting some of my business goals.” Erin stated.

Erin has been quite busy, getting her new business diggs up and running – a bold step considering the current state of the economy. So I began this interview with the obvious question: What motivated her to make the move?

Q: What motivated you to make the move to your new location at the corner of 8th and Ann Sts in Stroudsburg?
A. Well, there was the 2nd Floor barrier for those who couldn’t manage the steps. Plus I firmly believe that there is a big need in society today for personal financial education. I wanted to be a part of that educational movement and hold workshops and outreach classes. I didn’t have that kind of space in the old facility. Plus I am looking at the time when I will need to add another professional one day, so….

Q: Tell us more about what kinds of activities your plan to hold on the premises that will help us learn good financial planning?
A. I am planning monthly workshops on the 3rd Thursday evening of each month and touching on a variety of topics and quarterly discussions for national economic awareness, etc. We recently held a workshop with the sharing of the IOUSA movie concerning our national debt. There will also be “clinic” days on the 3rd Friday with hourly time slots at a reduced rate, geared especially toward Gen X and Gen Y clients and those starting out with less complex issues. We also plan to have some fun – like a Millionaire game night for women – with wine and munchies, of course!

Q: The obvious question – exactly where is your new office located?
A. 742 Ann St in Stroudsburg, PA.

Q: What sets you apart from other financial planners?
A. I am a fee only planner, which means I operate on a fee for service basis, and I don’t sell any products. My clients pay me directly and use no-load, low fee products for their investments. I’m free to advise them on issues not typically addressed with advisors like cash flow, taxes (I am also an Enrolled Agent) or any other financial decisions they face. I work with some clients on an open access, full time basis and still others, an hour at a time.

Q. Why did you join PoconoWomen?
A. I spent a lot of years isolated as a stay-at-home mom and then commuting to NJ. When I started working locally I wanted to get to know other women close to home. PoconoWomen provided great opportunities to meet a wide variety of women.

Q: How has joining PoconoWomen helped you in your business and your personal life?
A. I’ve met some really terrific, dynamic women through PW – most notable the remarkable Trudie Lear. It’s nice to run into women I know through PW at all sorts of events or just around town. I’ve met new clients through PoconoWomen, made some great professional connections, and learned a lot. We are learning new things all the time!

Q: How do you find balance with all of your other lives – family life, spiritual life and leisure time?
A. It’s hard, because if I’m at work and my kids are home I wish I were with them and sometimes when I’m at home I end up on my laptop working. I’m acutely aware that this phase of being a mom is almost over and I am cherishing every moment. But what ends up getting sacrificed is my personal health – exercising and eating right.

Q: How do you relax at the end of a stressful day?
A. I sit on the couch with a blanket beside my husband and read on my laptop.

Q: Just curious,here– Does your husband watch Sci-Fi movies and Ice Road truckers, too?
A. Yes.  (giggle)

Q: If you could send a message to all women reading this, what would it be?

A. The most important thing for women to do is to make sure that they always maintain the ability to earn a living. Pay attention to your finances! Create an emergency fund where you put a 10% (or more if you can) of your income in an accessible account –like a separate savings account locally (see Holly at KNBT), or in an online savings account like http://www.facebook.com/l/c03175ETtxh2olJ6UD-dW4BYxXg;www.ingdirect.com
This can be done at www.ingdirect.com

Thanks Erin. We wish you well, and I hope to come to your next workshop scheduled for October 27! (See www.poconowomen.com calendar for more details)
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Learn some great tips in a low pressure, high ‘liquid’ environment

Erin Baehr, of Baehr Financial Planning, will be on-hand for the evening’s frivolity. =)

A Members Only benefit: No admittance fee for members. Cash Bar. (Guests can join or renew their membership @ the door!)

To register, contact Trudie today!!