April 2004

Women and money

by Dr. Madeline Behrendt

My first career was as a model in Paris for a top designer. As his models, we were showered in gifts and pleasures. Prosperity attracts more prosperity, yet since chiropractors are not treated like models yet, we need to create our own financial freedom.

While money is not gender specific, some experiences are. Women can be financially vulnerable because we impact income to care for children or parents. Since generally women live longer, we need money longer.

Often girls are not nurtured to develop the skills for real estate and investment income. As adults, many women may have full closets but not full portfolios, and they discover that not being serious about money can be very expensive.

The most important professional people in a woman's life are not her hairdresser, manicurist, or that cute Vespa dealer. Her best friends are her accountant, stockbroker, and real estate broker. And for D.C.s who dream of developing professional lives beyond practice, a firm financial foundation gives you the freedom to spread your wings.

Let the following comments about money stimulate a discourse about your financial reality.

***  Start good habits early. I could write an entire column on students and money, but here are the cliff notes: Do not live in the future by racking up unnecessary debt and assuming you'll pay it off once you start practicing. Respecting money is a habit, so practice it every day. You cannot take a vacation from reality for three‑and‑a half years without consequences.

***  Sharing office space. In concept, I'm a big fan. I'd love to see chiropractic offices have multiple shifts and be open 24 hours a day. For female chiropractors who want to have a family and work part time, this can work out great. In reality, you may need to do some sifting to find the right fit.

***  Invest! Invest!! Invest!!! In "The Automatic Millionaire," author David Bach describes people who became millionaires on an annual income of $55,000. Investing is not about the big hit. It's about automatically and steadily putting a portion of your income away, not touching it, and letting time work for you. Don't think you need thousands of dollars. You can start with $50 per month. Bach also describes "the Latte factor," something every person needs to identify in his or her life. It's not hard to learn about investing. You survived chiropractic school and national/state boards ‑‑ you can do this!

***  Accountability. I can tell you some very rich people know exactly how much they spend on haircuts each year ‑‑ they know where their money is. Learn how to set up financial records, then sit down once a month and account for every dollar that has passed through your hands. Evaluate your finances to see whether they are meeting your goals.

Is there a problem in spending or income, or both? If you're not making the money you want, what needs to change in your actions, mental realm, choices, and environment to support the prosperity you want to achieve?

A benefit of accountability is that it interrupts fantasy, which is where women often go when they are down and vulnerable. Fantasy spending is very expensive. Reality is better.

***  It can all go away. I know you think this only happens to other people, but I strongly encourage you to protect your assets. Being a stellar human being who serves others does not shield you from misfortune or evil. Today we have protection tools (start with CBS insurance). Use them so no one can wipe out your years of hard work. Prepare for life's twists and turns.

***  Tithe. A prosperous mindset gives to others. Don't be ashamed if you can't give a lot. At first you may give time instead of money ‑‑ still, give.

***  Own. For single women, buying a house can have emotional baggage attached to it. Give yourself permission to value your money. How much is renting costing your portfolio? Independent ownership doesn't mean you are giving up on relationships or having a family, it means that you are smart. The New York Times reported that single women now lead men as owners of second homes, whereas not long ago these women were forced to have their fathers sign off on the mortgage!

***  Get professional help. I always had an accountant. As a business owner, are you set up in the best way to minimize taxes? Do you know the deduction percentages for health insurance, car, student loans? Are your retirement/sole owner 401‑K plans set up?

Chiropractic is as healthy as its practitioners, as choices made from prosperity are different from those made from poverty. And lives are different.

Grow your financial expertise, independence, and abundance. Don't let your money become subluxated.

See you at the WCA Summit in a few days ‑‑ I can't wait!

(Dr. Madeline Behrendt is chair of the WCA Council on Women's Health and associate editor of the Journal of Vertebral Subluxation [JVSR]. An author and speaker, she is committed to connecting women to chiropractic and chiropractors to women, and may be contacted at drmadeline@drmadelinedc.com)