March 24, 2017

WTOP Interview: Top 10 Money Mistakes Women Make

LISTEN NOW: Stop sabotaging your finances and take control by avoiding these common money mistakes.
Nina Mitchell, Principal, Senior Wealth Advisor & Co-President, Colony Sports & Entertainment

Interview Transcript:

Shawn Anderson: Sometimes things happen to your money that are beyond your control, but in many cases we are the ones making mistakes that are sabotaging our financial plans?

Hillary Howard: Joining us to help learn from our mistakes is Nina Mitchell; she’s Senior Wealth Advisor and partner at Her Wealth from Bridgewater wealth in Bethesda, good to see you.

Nina Mitchell: Pleasure to be here thank you.

Hillary Howard: You recently read a book called ''nice girls don’t get rich'' and it got you thinking about money mistakes. One of them is putting everyone ahead of you and your finances, if you don’t pay much attention to something, it doesn’t thrive.

Nina Mitchell: Well this is a big one, you know when we put our finances last, we miss out on opportunities to really grow our wealth and kind of secure our financial future. Time really is money and maybe by being too cautious or afraid of the stock market or not investing regularly, you're going to miss out on compounding and just the opportunity to really grow your money continuously for the long-term. As we know having money gives you financial security and hopefully you can be financially independent.

Shawn Anderson: The term financial literacy gets talked about a lot, go in a little more of what that really means?

Nina Mitchell: That's just really being knowledgeable and confident about your finances and there’s a lot of ways to do this. I mean every woman needs to have a basic finance 101 and you know it doesn’t take a lot of time commitments; read articles, listen to podcasts, attend seminars, talk to people, talk to your financial advisor if you have one. I know at our Her Wealth blog we write a lot of articles about investing and finance and so look at that.

Hillary Howard: Give us some more avoidable mistakes that we should be conscious of?

Shawn Anderson: One of the big mistakes is that women tend to be perfectionists, and so therefore they kind of overanalyze their decisions and they kind of get paralyzed.

Hillary Howard: I've done that.

Nina Mitchell: We want to get it right before we actually implement, and so we have to just understand there’s really no perfect investment strategy. And it's more important to get into the game as I say. And you can do this by investing in a well-diversified portfolio with stocks, bonds, real estate, money strategy funds. And you just have to accept the market ups and downs and be in it for the long-term. You can’t fear every market downturn and in terms of just compounding is really your friend. And Einstein has a great quote; Einstein said ''compound and interest is the greatest mathematical discovery''. The more time you give your money, the more time it’s going grow and the reinvested earnings keep on growing.

Shawn Anderson: Very good thanks Nina.

Nina Mitchell: Thank you.

Shawn Anderson: Nina Mitchell with Bridgewater wealth in Bethesda, you can read more about the top 10 money mistakes women make at WTOP.com/search Her Wealth.

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Shawn: Now you hear all kinds of deals about leasing cars, how can you negotiate a better deal if you want to lease?

Nina: Okay, well many people don't realize that they can actually negotiate the sticker price on a leased car in the same way that you would do that if you're buying a car. And since when you lease -- when you're, you know, your lease payments basically cover the depreciation, the difference between the sales price and the residual value. So it's definitely in your best interest to try to reduce that sales price as much as possible because then you'll pay you know, smaller dollars over the life of the lease. Make sure you pay attention to the down payment at the lease signing. And so here's an example, you might see an ad that says you know, lease payment is only 1.99 a month and that sounds like a great deal for thirty six months. The catch is, is that it might require a $3,600 down payment. So, if you amortize the down payment, then actually that 1.99 special, becomes 2.99. So, you really have to kind of look at total costs. 

And then lastly, dealerships use the term, money or lease factor, when they're calculating your financing costs and a lease factor is not the same as an interest rate. So, you have to make sure the dealer converts that lease factor into a comparable interest rate so you know what your financing charges are. 

Shawn: At the end of the day, does one method wind up being more expensive more often than the other, or can we tell that?

Nina: You know what, it really depends on how long, if you're going to hold the car for a long time, you're better off buying. But if you know, and if you're not, if you just really enjoy driving and you want to have a new car, then go ahead and lease. I mean, there's pros and cons to both, to be honest with you, it's not one size fits all.

Shawn: Alright Nina, great. Happy Thanksgiving to you. Alright, Nina Mitchell is with The Colony Group, for more go to wtop.com and search Her Wealth.

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Nina Mitchell, Principal, Senior Wealth Advisor & Co-President, Colony Sports & Entertainment

With over 25 years of finance, tax and investment advisory experience, Nina advises an elite group of professional athletes, executives and high net worth individuals. She is a driving force behind Her Wealth, Colony's initiative to empower women with financial knowledge, resources and confidence.