ForeclosuresMass - ForeclosuresMass Monthly - Success Strategies - Three Tips for Updating Your Financial Myths (May 2007)

Remember that 1980s song, "Sisters are doing it for themselves," by Aretha Franklin? Women are definitely doing it for themselves these days - and one thing they're doing is purchasing real estate in record numbers.

According to research by the National Association of Realtors, single women represented a record 22% of all first-time homebuyers in 2006, up from 14% in 1995. This group of buyers is second behind married couples and well ahead of single men - who account for only 9% of all homebuyers.

Getting closer to home, 60% of homes purchased in Massachusetts in 2006 were bought by married couples, 8% by unmarried couples, 6% by single men, and a whopping 24% by single women!

This increase in women homebuyers is a huge change from 25 years ago when the number of single male and female homebuyers was roughly equal.

* Next 37 17 investors only!

These numbers are significant, too, given the cultural mindset many baby boomer women grew up with. Financial investing and home buying were activities you left for after you got married.

And, despite the amended Fair Housing Act of 1974 - which stipulated that women could have credit in their own names and indeed, purchase properties without having a husband or father co-sign - it's still a pervasive "myth" in our culture that a woman can't or shouldn't buy a house on her own.

In fact, I see 20-something women in my practice who tell me their parents tell them they're making a big mistake if they buy a house before getting married!

If you're a woman and have been considering real estate investing because you want to increase your financial security, build wealth, or provide for your family - or all three! - but can't seem to get off the couch so to speak, it may be you're carrying around some of this emotional baggage without realizing it.

It's a fact that old money myths can keep you from achieving your goals. What follows are three strategies for updating your ideas about becoming financially independent.

All of us - male and female - hold a set of unexamined beliefs and messages about money that come from our families. These beliefs become a "compressed file" when you keep your money concerns bottled up inside.

A good way to gently open this file and begin examining these beliefs is by reading books, such as Women and Money by Suze Orman or Money, A Memoir: Women, Emotions and Cash by Liz Perle.

I recommend these books because they aren't financial "how-to" books on investing, which can be overwhelming if you're not ready for this step. Instead, these books allow you to begin questioning long-held beliefs: i.e.: "Money is too complicated," "I don't need more money," "It's better to help others than to make more money," or even, "Money is dirty" (!).

You can either write your thoughts in a journal or start a money group with like-minded women and share your beliefs and ideas. List your beliefs one by one, and then look at each belief objectively. Is it true? What can you do to change how you react to that belief?

Did you know that study after study has shown female stock market investors outperform their male counterparts?

Yes, it's true. In a 2001 study, for example, Terrance Odean and Brad Barber proved that men trade 45% more than women but earned "annual risk-adjusted net returns that were 1.4% less than those of women."

They go on to add that "these differences were more pronounced between single men and single women; single men trade 67% more than single women but earned annual risk-adjusted net returns 2.3% less than those earned by single women."

What does this mean? Men, according to Odean, are overconfident when it comes to finances and investing. Overconfidence leads them to trade more often than women, and to take greater risks, both of which lead to lower returns.

What this study - and others like it - says to me is that women investors actually do quite well, despite the fact that women will tell you money is "complicated" or that they leave financial matters to their husbands who "understand this stuff" better than they do.

Having an updated "database" of statistics and trends like this study, or the growing number of women homeowners cited above, gives women permission to reexamine the embedded beliefs and thoughts they didn't know were constraining them.

Instead of thinking, "I can't invest in real estate - I won't do well" a woman can now think, "Wow, other women are investing in real estate successfully. If they can do it, I can, too."

This type of "inner" work can take some time. You don't flip a switch and instantly have a new relationship with money. I like to tell my clients that the process is more like a dimmer switch - as you slowly turn the switch, the dark room becomes lighter until finally the entire room is illuminated.

Sometimes it's helpful to literally write the old belief - "I'll never make enough money," - in order to neutralize the negativity. Then, generalize the belief so you create a reasonable rule, which you can state in the third person if you aren't ready to buy it for yourself yet. For example, in this case the negative belief is changed to, "It's okay to make enough money," and when that feels comfortable, you personalize it by changing it to, "It's okay for me to me to make enough money."

Do this with each belief and soon you will have turned your limiting beliefs into expansive affirmations, which give you the power to change your outlook and your life.

At times you'll feel like you're literally battling self-doubts and inner demons in order to make positive changes. Use your group or journal to record what you're thinking . . . and go forward with your game plan.

When you change your beliefs about money, however, money actually changes your life. You deserve peace of mind and prosperity.

Szifra Birke is a licensed psychotherapist who works with people around money, emotions, and values. She's also a financial behavioral specialist and works with financial planners and wealth investment professionals. She can be reached by telephone at 978-446-9600 or via her website at http://www.birkeconsulting.com.

Did you like this article? You May Also Like:

	Feature Article: Appraising a Property Without Stepping Foot on the Premises Steve Krasnow, Certified Residential Appraiser Determining a property's value in order to make the right offer or bid takes practice and experience. Knowing how to evaluate a property when you dare not step foot past the boundary line is another whole kettle of fish. In this article, Steve Krasnow gives four strategies for determining value - without having to tour the property.
	Legal Corner: Banks are willing to work with investors to find equitable solution Bob Tenney, Cunningham Machanic Bob Tenney, attorney at Cunningham Machanic in Natick, is on the frontline of the foreclosure process. Tenney and his firm review claims by lenders to review properties for foreclosure. If proper conditions are not met, they are also the folks who send out demand letters—the step that begins the foreclosure process for the homeowner. "We send the demand letter and give the homeowner time to reinstate their loans. If that doesn't happen we proceed with the foreclosure," says Tenney...
	Interview With The Expert: Richard Cohen Richard Cohen, Negotiation Coach and Consultant For any real estate investor, negotiation is a part of everyday life. Whether with tenants, contractors or homeowners, any time you are trying to influence someone else, you are negotiating. This month we speak with Richard Cohen, a negotiation coach, consultant and real estate investor, to understand more about this critical skill...
	Feature Article: Conventional Financing for Less Than Stellar Credit Jeffrey Chalmers, Real Solutions LLC Have a so-so credit score and need financing but aren't ready to go the private money route just yet? You can still get conventional financing - if you use a combination of lender and seller monies. Mortgage expert Jeffrey Chalmers explains the lending process and what banks look at when determining your loan amount and how you can work with motivated sellers to help finance that next deal.
	Feature Article: Use Exit Strategies to Reach Your Investing Goals Joseph A. Roche Planning your exit strategies will help you anticipate potential opportunities and problems and how you'll deal with them - as well as ensuring that you don't lose money on a deal. Real estate investor Joseph Roche discusses the six most common exit strategies, including wholesaling and lease options, and how and when to use each one to reach your investing goals.
	Feature Article: Getting Clear For a Great Next Year Sharon Teitelbaum, MA, PCC Lots of people set goals, but as experienced career coach Sharon Teitelbaum explains, that alone is not enough. Read on as Sharon offers five specific recommendations - recommendations which go beyond simply setting goals - to help you start or grow your real estate investment business in the coming year.
	Feature Article: Using Direct Mail Lists to Reach Potential Home Buyers Lois K. Geller Rookie real estate marketers spend 90% of their time on creative when putting together a direct mail campaign. Lois Geller explains why this is a backwards approach - and why you should focus on building a targeted list instead.
	Success Story: One Deal, $90,000... Dominic Kirchner II, Exit Realty Center Full-time realtor and professional investor, Dominic Kirchner II, received his Foreclosures Mass email one Friday afternoon. After reviewing the stats, he quickly downloaded the data and sent out inquiry letters to the people who had received foreclosure notices...
	Interview with the Expert: Incorporate Real Estate Into Your Financial Plan Judy Carryl-Young, Ameriprise Financial Services, Inc. Financial planners often see clients who want to put everything they own into real estate . . . sometimes with disastrous results. In this interview, licensed financial planner Judy Carryl-Young explains why single asset allocation may not be the best choice for you and how you can maintain your financial security by keeping a diversified portfolio.
	Feature Article: How to Become Financially Literate - Without Getting a Degree in Finance Ann Bellamy Think you need a finance degree to understand the real estate "numbers" game? Think again. Ann Bellamy, real estate investor and hard money broker, gives you seven tips on how you can become financially literate and comfortable with real estate investing. (Hint: Don't be afraid to take chances.)