As I noted in the previous article, women are more reluctant than men to seek financial advice from consultants and advisors. One reason that women hesitate to learn more about their finances is that they feel they cannot afford a consultant or an advisor. Another reason is that women don't know who to trust, and they don't know the questions to ask. Finally – some women don't feel they make enough money to deserve a professional opinion about their finances.

If you are nodding your head in the affirmative at this point, then you also might agree that you entertain a degree of financial illiteracy. Don't take this information the wrong way – you can hold a doctoral degree and still be financially illiterate. Plus, no single person can know everything about how to handle finances. Tax laws seem to change every year, your life situation may change just as often, and ways to save and spend money to your advantage are always in flux.

But, chances to increase your financial literacy are everywhere these days. And, if you take some time – say, about three to six months – you can increase your financial literacy dramatically. Here's how it works:

1. Read More Financial News: Instead of shopping, spend some portion of each day reading something about money, even if it's only the headlines of the business section in your local paper. After a while you may want to learn more information, and you can start right here at BUYandHOLD. Educate yourself with Nancy Dunnan in her column at Under the Oak, and Brian Trumbore's Week in Review and Wall Street History should get you started. After this, head online to find other free financial news at sites like CNNMoney, Bloomberg, Forbes or CNBC. You can skip the last suggestion if you can get CNBC on your television. By the end of summer, you might be obsessed with learning more about the economy, especially during an election year. Once you get over the fear of learning about money, you might find the subject more fascinating than Britney Spears' latest escapade.
   
   
2. Talk About Money: This task might be one of the hardest things for many women to accomplish. But, when I ask you to talk about money, you don't need to spill the beans about your inheritance or the fact that you're so broke that you're dreaming about siphoning gas from your neighbor's gas tank. What I'm asking is that you have a conversation – at least one per week over the summer – with a person who seems to know more about money than you. Pick their brains, discover their opinions about investments, and listen closely to what they say. Compare what these individuals say to what you know from your reading. Don't be afraid to ask questions when you're confused – people who know money LOVE to talk about it. And, most of these people are willing to teach others what they know.
   
   
3. Talk With Friends: I'm a woman, so I know that women rarely talk about how they feel about money. But, if you trust a friend or two, then talk with them about any personal issues you might have with money. Your friends may shed some light on why you can't seem to save money or why you keep giving your money away (to strangers or to your kids). If you don't have friends, find a therapist to bounce money issues around with. There's no shame in learning more about yourself – even if you need to pay for the updates.
   
   
4. Attend a Financial Investment Seminar: Since you have the paper handy, look for a local investment seminar that you can attend over the summer. You might find one at the local college, at a bank or credit union, or you might find one online. Some investment firms will offer short evening programs for the financial newbie in an effort to draw business in the door. Just because you attend a seminar offered by a business doesn't mean you need to bring your financial matters to that business. Think of the seminar as a form of shopping, where you're trying on a coat to see how it fits. Try to attend more than one seminar if possible so you can learn how different speakers approach the subject of beginning investment strategies.
   
   
5. Revisit the Experts: By “experts” I mean those people you talked with in step #2. Find out who they use as financial planners or advisers. Ask them what they like about these planners, and ask them why they use them. Do they use these advisers for retirement planning? Or, do they use them for compiling an investment portfolio? Do they have an ongoing relationship with this adviser, or is it a sporadic visit just to catch up on changes in financial situations?

That last step is important, because you need to know why you want to use a financial planner or adviser yourself. At this point, you may talk yourself out of this step, because you may feel you don't make enough money to spend money on an adviser. But, frankly, everyone needs to plan for retirement, so isn't that worth one visit? Beyond this, here are a few other reasons to seek financial help:

1. You feel out of control with your money. A financial planner can provide some help and guidelines that will help you get back on track. Personally, I need someone to provide those guidelines, as I rarely listen to what I say to myself...
   
2. Have you changed jobs? Do you need help with rolling over your 401k? Such an event is an excuse to seek professional financial help. If you like the way that a planner has handled this event, you may trust him/her enough to manage more of your financial affairs.
   
3. You won the lottery or you received an inheritance, and it's enough money to worry whether the IRS will tackle you in the street. A financial planner can help you divert some of this money into tax-free investments and help you plan on how to save that money for your future.

If you don't feel comfortable talking about money with a man (this is if you're a woman), then find a female financial consultant. I will warn you – some consultants won't talk with anyone who doesn't have a hefty sum set aside. But, many advisers are willing to help the average-income earner. As a last step, check with your bank – they may have some suggestions for you as well.

In the next article, I'll provide you with some questions that you can use when you interview that financial adviser. This is a job interview, after all – you're hiring someone to help you become more financially savvy.

Until Then,
Linda Goin