Women earn 83¢ for every $1 earned by men.¹

The median annual salary for men is around $61,100. At 83¢ for every $1 earned by a man, the median annual salary for women is around $50,700.² For someone taking care of a family, how significant do you think that extra $10,000 would be?

By the time a woman reaches age 65, she will have earned $900,000 less than a man who stayed continuously in the work force.³ Consequently, retired women receive only 80% of what retired men receive in Social Security benefits.⁴

Women tend to be the primary caregivers for their children, parents and partners.¹ So women end up taking time away from their careers to care for loved ones. These career interruptions can significantly impact women’s chances to climb the corporate ladder – promotions, raises, bonuses and full retirement benefits.³

Since women earn less, we have less money to set aside for our financial goals. Of the Americans who live paycheck to paycheck, is it a surprise that 85% are women?⁵ As a result, women own just 55¢ for every $1 owned by men. We accumulate only half of the wealth accumulated by men.⁶

We may not see the gender pay gap or the gender wealth gap close in our generation. But women can change the financial trajectory of their lives by learning how money works and applying the 7 Money Milestones. By understanding and paying attention to all of the things that make up our financial picture – Financial Education, Proper Protection, Emergency Fund, Debt Management, Cash Flow, Build Wealth, and Protect Wealth, we have the power to take control over our financial future and create equal wealth for ourselves.

And, women need to think about their career decisions. We should consider choosing a career that pays more to women and men equally. With a company that doesn’t penalize women for time spent taking care of loved ones. A place where women can create equal pay for ourselves.

Women have made a lot of progress in pursuing higher education and professional careers, but we’ve only made incremental progress in our finances. If we want to bring about profound change, we have to make it happen for ourselves. We have the power to close the gap in our lives for ourselves and our families.

— Kim Scouller

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Who will teach your kids how money really works? Don’t count on school!

Only 17 states in the U.S. guarantee a financial literacy course during high school, and 4 of those states have some of the worst financial literacy levels in the country!¹,² It’s no wonder that only 28% of college students were able to answer 3 basic money questions about inflation, compound interest, and risk diversification.² Think about it; many kids who don’t understand the fundamentals of money are also pulling out huge student loans that they have no clue how to handle. They’re getting taken advantage of before they even graduate!

Think that’s scary? Here’s where things get even scarier. The simple fact is that many people don’t start learning about money until they’re already in deep debt and sense a looming crisis. By that time, even if it’s not too late to avoid a catastrophe, many of those people can face a lifelong struggle to achieve robust financial health. What’s the solution? People should start learning how money works in their twenties? Nope. As teenagers? No way. People need to start learning how money works as kids—long before they’re in charge of their own personal finances.

Researchers from Cambridge discovered that our money habits are basically formed by age seven.³ The deeply indebted college freshmen of today spending 50 bucks a month on lattes and energy drinks are the result of financial under-development. It’s like tossing the keys of a $200,000 sports car to a teenager with zero driving experience and saying, “enjoy.” The most likely result down the road—disaster. ($200,000 also happens to be less than the cost of a 4 year private college in America.⁴)

So what are your kids learning about money?

First, ask yourself what they are learning from YOU. If you’re like many Americans, your kids may think that money is supposed to be spent on what makes them feel good—right now. They might be completely unaware of the full power their money possesses to grow and build wealth and help them achieve their dreams.

Many parents do talk to their kids about working hard and earning money. They can, however, fail to bring them into the process of creating personal finance goals and showing them how to protect and grow their money to hit those goals.

Roll up your sleeves and consider showing your kids how money really works while their minds are little sponges and they haven’t made any money mistakes yet.

Here are nine tips to get you started:

1. Read the book, HowMoneyWorks: Stop Being a Sucker, together.
2. Discuss the concepts and 7 Money Milestones in the book.
3. Let your kids in on some of your financial decisions and share a bit about your home budget with them so they understand the decisions you make for the family.
4. Help them figure out ways to make money, save it, protect it, and watch it grow.
5. Show them that putting all their money into a savings account is an opportunity for the bank to make money—not them.
6. Explore smart tactics to avoid the impact of procrastination, inflation, losses, and taxes with their money.
7. Use imaginary money and investment scenarios to teach them financial principles.
8. Open an account for them with real money and take them through the entire process. Watch the money together each month as the balance changes.
9. Have them accompany you to your next meeting with your financial professional, so they can ask a few questions of their own.

Perhaps your kids are older or maybe even have kids of their own. Know this—it’s never too late to start learning about how money works and teaching your kids about it too—no matter how old they are.

Let me know if you don’t have a copy of the book, How Money Works: Stop Being A Sucker. I’ll get you one ASAP! It’s packed with all the information you need to jumpstart your family’s financial literacy journey.

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People with a high level of financial literacy are able to make informed decisions by putting their financial education to work.

Understanding how money works is practical by nature and can be a make-it or break-it knowledge base and skill set for one’s life.

Financially literate people are able to organize their money to meet their future goals—regardless of what those goals may be—by simply being smart with money. This is usually best accomplished with the assistance of a financial professional.

Financial literacy is becoming increasingly essential in today’s evolving world. A lack of financial literacy could lead to a wide number of financial difficulties for people, contributing to important social issues in our nation including poverty, job scarcity, and wealth inequality.¹ It can also create stress that can have a negative impact on mental and emotional health.² Financial skills can help provide benefits that go beyond mere financial awareness. They can also lead to an improvement of personal well-being because those who are financially literate usually have greater success and peace throughout their lives.

To understand what financial literacy means it’s important to know and follow the correct steps—like the 7 Money Milestones—which can be found in the book HowMoneyWorks: Stop Being a Sucker. Having financial literacy adds to the values, skills, and self-confidence necessary to make insightful, strategic money decisions.

Yes, becoming financially literate takes work. But the outcome can greatly improve quality of life.

Financial literacy helps people understand relevant money concepts. Knowing about the Time Value of Money is a great example. This concept informs us that the money available now is worth more than the same amount in the future because of its ability to earn interest.

Concepts like this create urgency, inspiring people to increase their financial education, and then use that knowledge to take action and create healthy money habits.

__Financially literate people…

- Ask the right questions of their financial professional

- Are aware of the reasons behind their decisions

- Set aside part of their income on a regular basis

- Make plans for the future

- Protect their family in the event of sickness or premature death

- Set financial goals and make plans to achieve those goals

- Set aside savings for emergencies

- Keep their financial obligations under control

- Monitor their spending patterns

- Understand concepts such as loans, credit, and debt

- Are aware of the services banks provide

- Are knowledgeable about investment options

- Do not spend more than they earn

- Have an understanding of tax-related issues

One of the best resources that teaches the basic knowledge, skills, and behaviors of a financially literate person is the HowMoneyWorks: Stop Being a Sucker book. If you develop the skills outlined within, you can consider yourself well on your way to becoming financially literate.

— Tom Mathews

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Do the wealthy know ways to make money that are unknown to everyone else? You better believe it!

John D. Rockefeller, one of early America’s richest tycoons, once said, “I have ways of making money that you know nothing of.” How does that make you feel? Shouldn’t everyone know the best ways to make money and create a prosperous future?

But the fact remains. There are wealth-building principles that are common knowledge to the wealthy but are largely unknown by the majority of the population.

So why is the average citizen in the dark?

How money works is simply not taught in schools. Only 21 states in the U.S. teach at least one high school class in financial education.¹ Interestingly, all 50 states teach a class on sex ed. So the one thing you can learn on your own, they teach. And the one thing you’ll never learn on your own, they don’t. Go figure.

Actually, it does figure.

Think about it. If the financial industry were to educate consumers about money savviness, people might stop socking away so much of it in low-interest savings accounts that earn less than a 1% rate of return. And before you leave the branch do they offer you a brochure on financial concepts to help you get out of debt, avoid money missteps, and start saving like the wealthy?

Pfff—yeah right!

No. It’s like, if you’re dumb enough to open a low-interest savings account and take the free lollipop (it’s like their sucker litmus test), then they’ll try to sell you a car loan at 6% interest.²

What a deal. You earn less than 1%—they earn 6%. It’s like a lose-lose for you, but you still thank them on the way out.

But they don’t stop there.

With your new car loan monthly payment, you might run low on cash from time-to-time. But thanks to partnerships with credit card companies, the bank can also offer you a shiny new charge card—but “just for emergencies.”

Do they make it clear how much they charge for late fees before they sell you on the benefits and points you can earn? No, that’s what the back of the brochure is for—as far away from the exciting offer as legally allowed. And you can bet it’s the same customer who opened the savings account and took the car loan who never flips the brochure over. They can always count on a customer with a sucker in their mouth to help drive their profits from late fees.

Hard to fathom there are that many suckers? It’s true…

With an overall outstanding balance of $5,313, the average American has 3.84 credit cards, and 80% of all Americans have a credit card.³ All told, Americans owe just shy of $1 trillion.⁴

The financial industry thrives on customers who are stuck in the “Sucker Cycle” of foolish spending. While consumers are binging on Netflix, shipping on Amazon, and ordering from DoorDash, institutions are quietly leveraging the power of compound interest to make their customers’ money work for themselves. While consumers live paycheck-to-paycheck, financial institutions and shrewd businesses build profits sucker-to-sucker.

For most people, earning (and spending) a paycheck is the extent of their experience. But the wealthy know the real deal. To become financially independent, you must know the concepts and strategies to save, protect, and grow your money.

Did this article make you mad? Hopefully, it did.

So what do you do about it? You stop taking the sucker and you stop being the sucker. You learn how to take control of spending, protecting, saving, and investing your money. How? You do it by reading the book, “HowMoneyWorks, Stop Being a Sucker.” It will only take about an hour.

Don’t have a copy? Contact me and I’ll help you get one.

Use that anger to fuel action. Read the book. Then reach out to me and say, “Now that I know the ways of making money Rockefeller spoke of, I’m ready to chart my own course to financial independence.” We have a clear action plan for you to follow called “The 7 Money Milestones.” I’ll help you check off each one.

Let’s do it together.

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So, you’ve got a shiny new emergency fund. Congratulations! You’ve officially completed Milestone 3 of the 7 Money Milestones.

It’s a turning point in your journey towards real wealth. You now have the resources to extinguish financial fires without resorting to debt.

But just because you have an emergency fund doesn’t mean that you can start pulling from it willy-nilly. If your emergency fund starts leaking money, you may find yourself staring down a financial forest fire with an empty bucket.

Here are two simple rules for creating a watertight emergency fund that can be there for you in your hour of need…

Rule #1: Your emergency fund is ONLY for unexpected emergencies.

That’s all. It’s not for last minute birthday presents, much needed spa days, or irresistible Black Friday sales. It doesn’t matter if it sits in your checking, savings, or a separate account—as long as it doesn’t tempt you to use it for anything but a true emergency.

Rule #2: If you need it, use it.

If you’re facing a broken down car, a leaking refrigerator, or a kid with a knocked out tooth, use the money in your emergency fund. Fix the car, replace the fridge, pay the ER fees. That’s what it’s there for. Just make sure that afterwards you add back a little money every month until your emergency fund is full again.

Follow these two rules and your emergency fund will be there when you need it most. It’s the foundation of financial security as you conquer the remaining Money Milestones without fear of unexpected setbacks.

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How much cash do you have left at the end of the month after you’ve covered the essentials AND treated yourself? (I’m guessing not much.)

Wish your paycheck went a little further? You’re not alone—not by a long shot. Most Americans are living paycheck-to-paycheck and saving little to nothing. So how do you increase your cash flow so you can stop living in the Sucker Cycle and start saving and investing more?

In the book, HowMoneyWorks, Stop Being a Sucker, we attack this challenge head on in Milestone 5 of the 7 Money Milestones.

Here are a few tips to get your cash flowing towards your future…

Redirect your cash flow

There are a million little things that siphon away your paycheck. Credit card debt, monthly subscriptions, and your fast food habit all chip away at your income. This “death by a thousand cuts” is a foolish spending cycle that prevents you—and countless other suckers—from creating an emergency fund, protecting your income, and building wealth for the future.

That’s why it’s so important to make and maintain a budget. It’s like a map of where your cash is going. Once you have that knowledge, you can figure out where you need to dial down your spending and start redirecting your cash. Don’t get too detailed. You don’t need to get overwhelmed by spreadsheets. Try creating a one-page list of expenses, freeing up as much cash as possible. Take your budget to your financial professional and discuss how best to use this available cash.

Open up new income streams

Budgeting and cutting back on spending might not be enough. Life throws plenty of unexpected (and expensive) problems at us that might not have a budgeting solution. You may need to look for new income streams to maintain the lifestyle you want while also saving for the future.

You’d be surprised by how many possibilities there are to create additional income streams—many of which offer the chance to make money from home. Maybe now is the time to discover that your favorite hobby or area of interest is actually a way to earn some cash. That could look like a side hustle or weekend gig, but you might find that your skills and ideas are full-time business opportunities just waiting to happen! Research which of your ideas and skills are in demand, figure out how much time and effort it will take to get started, and decide how much time you’re willing to commit. (It could be easier than you think!)

Increasing your cash flow can open up a whole new world of opportunities. That extra money you have from cutting back on takeout and streaming services could be how you fuel the power of compound interest and finally start saving for retirement. That several hundred dollars you bring in from teaching guitar lessons each month could be how you pay off your credit cards and free up even more cash. There’s no doubt your options can really open up once your cash starts flowing!

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Your financial education must include both knowledge AND what steps to take. It must teach you wealth building concepts AND wealth building strategies.

If you’re lacking knowledge, it’s impossible to start your journey to financial independence because the money decisions you make without it are likely to do more harm than good.

But knowledge alone is not enough. Knowledge without guidance leads to information overload and analysis paralysis.

It’s what all financial professionals hear: ”You’ve taught me about the Power of Compound Interest. Great! And now I know about the Time Value of Money. Wonderful! But where the heck do I find an account with the interest rate I need to reach my financial goals?”

Tony Robbins said it best. “Knowledge is NOT power. Knowledge is only POTENTIAL power. Action is power.”

So before you create a strategy to start building wealth, learn how money works. Discover the financial illiteracy crisis and its impact on your peace of mind. Learn about the Power of Compound Interest and the Time Value of Money and how those concepts can make your money earn more money. Realize the wealth building potential of starting a business.

Then, get with a licensed and qualified financial professional. Start working through The 7 Money Milestones. They’re time-proven steps that can move you from financial hardship to financial independence. The Milestones are…

• Financial Education

• Proper Protection

• Emergency Fund

• Debt Management

• Cash Flow

• Build Wealth

• Protect Wealth

Why these steps? Because they apply what you’ve learned to simple strategies, like…

• Securing proper financial protection for your family

• Leveraging a side hustle to boost cash flow

• Protecting your wealth with an estate plan

The Milestones take your newfound knowledge and transform it into action. They move you from having the potential to be wealthy to walking the path towards securing your future.

In short, they help unlock your power to create the future you want.

Learn how money works. Follow the Milestones. Take control of your financial future. With this education, you can be on the road to wealth in no time flat.

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Budgeting is good, budgeting is great. But if you’re building wealth, it will only get you part of the way.

Budgeting is usually the first move for anyone getting their finances in order. It’s basically just tracking your expenses against your income, and then slashing spending.

Consider that 64% of Americans live paycheck-to-paycheck.¹ Low income isn’t to blame—48% of families earning over $100,000 also live paycheck-to-paycheck!² So for many, budgeting is an absolute necessity.

But will budgeting alone put you on the fast-track to wealth? Probably not.

Let’s say you earn $45,000 per year (after taxes), but you spend $45,000 every year. Congratulations! You’re living paycheck-to-paycheck. When you decide to get serious about building wealth, you’ll face a stark reality—you have no money left over to save!

So you start budgeting. You move from your apartment in midtown to a hovel in the suburbs. You stop going out. You cook at home. You walk to work. You swap lightbulbs for candles. You scrap Netflix, Spotify, and cable—and you start whittling random sticks you find in the yard to pass the time.

By the end of the year, you’ve spent only $30,000. Good for you! You have $15,000 to devote towards building wealth.

But what if you’re still short of your savings goals? You’ve cut spending to the core. Unless you’re willing to scavenge for food and live in a tent, cutting your spending further is going to be tough.

You only have one option—boost your income.

What does that look like? It could look like scoring a promotion. Or getting a new job. It could also look like starting a side hustle or becoming a part-time entrepreneur. You actually may be surprised at how many of your talents and hobbies have income-boosting potential!

That’s why for the 7 Money Milestones in the book How Money Works: Stop Being a Sucker, budgeting and boosting income are rolled together into a single Milestone—Milestone 5: Increase Cash Flow. Budgeting will get you started, but to truly supercharge your savings, you’ll need to increase your income stream, or create a multiple income streams.

Think about it like this—Jeff Bezos drove a Honda Accord for decades, but that’s not what made him a billionaire. Rather, he began with frugality and then built an income-generating empire.

So if you’re just beginning to build wealth, start with budgeting. Clean up your spending as much as possible before boosting your paycheck.

If you’re already frugal, good for you! You’ve made a great stride towards building wealth. Now, it’s time to consider boosting your income further.

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It really isn’t a question on whether or not you need an emergency fund.

(You do.) It’s the first line of defense when unexpected expenses show up (and they will—have kids?). Unforeseen emergencies threaten to undo your hard work and careful financial planning.

But what exactly is an emergency fund? What should it look like? And how do you start building one if you don’t have a sack of cash lying around?

What’s an emergency fund… and why do you need one? <br> An emergency fund is a dedicated amount of money to cover unplanned, unavoidable expenses. Establishing one is an important milestone on your journey to achieving financial independence! But why is it such a big deal?

Emergencies are a part of life. Nobody schedules a busted transmission or a broken arm, but you’ll need a way to pay for them when they happen. Who would have guessed that a global pandemic would force most of us to stay at home and cost millions of Americans their jobs? So it’s not a question of if you’ll need to cover something unexpected but how you’ll cover it. Without an emergency fund, you’ll be forced to either dip into your long-term savings (assuming you have them) or go into debt. For most people, either option can seriously throw off long-term financial plans. An emergency fund gives you the power to overcome sudden obstacles without sacrificing your retirement or piling up credit card bills.

Emergency fund ins and outs <br> One critical thing to grasp is that an emergency fund isn’t the same as your savings. Establishing a solid emergency fund is not a long-term goal that’s built over years or decades. Once the emergency fund is full, then you move on to other money milestones like conquering debt and saving for the future.

So how do you know you have enough in your fund? That depends on how much you make. A good rule of thumb is that an emergency fund should cover 3 to 6 months of income. That provides a buffer if you have an unexpected car repair, medical emergency, or if you’re temporarily unemployed due to an unprecedented global pandemic!

But what if you don’t have that much cash just lying around? <br> 3 to 6 months of income might seem like a lot of money to set aside, especially if you’re currently living paycheck to paycheck. Building an emergency fund will take time and budgeting. Start with a goal of saving 2 weeks of pay. Then shoot for 1 month, then 2 months, etc., until you reach your goal.

The 2 Rules of Emergency Funds

Rule 1: An emergency fund is only, ONLY to be used in case of actual emergencies. It’s not for last minute getaways, much needed spa days, or killer video game sales. If those kinds of things come along, you can use a “fun fund”, which of course is part of your regular budget!

Rule 2: The emergency fund needs to be easily accessible. Make sure it’s in an account where you won’t incur fees for withdrawals when your car breaks down or you suddenly need a new AC unit. That’s why it’s there. Just remember to refill it as soon as the emergency has passed.

Once you’ve built your emergency fund and you know the rules, you’re ready to move on to the next stages of building wealth. Congratulations!You’re officially not broke and in the perfect position to chase your financial future!

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Saving money is a good habit, but a bad strategy.

That’s why the rich focus on investing. While the masses are getting .09% interest on their passbook savings account,(1) the rich are pursuing returns of 5% or more on the same money. That means with a $10,000 investment paying .09% interest, the saver pockets a whopping $9 per year. That same $10,000 investment paying 5% interest yields a $500 return.

Wealthy people know that a little strategy goes a long way, and when it comes to money, that could make the difference between a comfortable and miserable retirement. The good news is that you don’t have to have a PhD in finance to become a competent investor; you simply have to know how money works. While the masses may be buying used luxury cars, second homes, and living beyond their means, the rich are more inclined to create assets that leverage the power of compound interest and other people’s time—such as retirement accounts that yield interest, part-time businesses, and property. The rich put their money to work, while the masses simply go to work.

The secret to better investing is maximizing returns while managing risk. The rich rarely get greedy, and usually settle for reasonable returns with minimal risk. They generally don’t expose their financial future to the wild swings of the market. They know that the enemy of the investor is losing money, so they lean more towards calculated risks where returns are respectable and losses are not likely. It’s the old professional baseball strategy: Forget about hitting home runs and just get on base. Sure, it’s not as sexy as knocking the ball out of the park or being able to brag to your friends that you made a 50% return, but it reduces your exposure while simultaneously providing you with the potential to become incrementally wealthier every day.

Start by learning the Rule of 72, the Time Value of Money, and the concept of Wealth Equivalency. Next, learn how to protect your family from the fallout of premature death while building cash value you can eventually withdraw tax-advantaged. Lastly, learn how to leverage long-term care insurance for pennies on the dollar by adding it as a low cost rider on a life insurance contract. More people go broke from medical issues than any other reason.(2) These basic strategies will start you on your way to financial success.

Our book, How Money Works: Stop Being a Sucker, will take you through the 7 Money Milestones. Study these milestones and contact your financial professional to put the proper strategies in place. If you take action, you can alleviate any worries about your financial future. It’s that powerful of a process. Once you’ve implemented these strategies, you can focus on the other things that really matter in your life. Give yourself the gift of financial security. You deserve it.

— Steve Siebold

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