30 percent of your credit limit.
• Avoid opening too many new accounts at once; new accounts lower your average account age, which makes up part of your credit score.
• Keep accounts open for as long as possible. Unless one of your unused cards has an annual fee, you should keep them all open and active for the sake of your length of payment history and credit utilization.
Check Your Credit Reports and Scores
As you take steps to build your credit, check your credit reports and score regularly. You’re entitled to one free credit report every twelve months from each of the three bureaus. You can also get your reports at AnnualCreditReport.com.
Your credit reports don’t contain credit scores, but you can get them in several ways. Here are some free options:
• Several credit card issuers — including Discover, Citi, and Barclaycard US — print your FICO score on your monthly statements and allow you to access it online. Discover goes one step further and offers a free FICO score to everyone, not just customers, at Credit Scorecard (www.creditscorecard.com).
• A few lenders — including Hyundai, Kia, Pentagon Federal, and Sallie Mae — also provide borrowers with ongoing access to their scores.
• Some websites offer free credit scores online, though they are typically VantageScores, rather than FICOs. But a good score on one scale is generally reflective of a good score on the other.
• Capital One offers a free VantageScore to anyone, cardholder or not (https://creditwise.capitalone.com).
If you are serious about taking back your power, there is simply no better way to do it than to start your own business. Given the new economic reality of our time, more people than ever have found that the “job” they thought was waiting for them doesn’t exist. If you have been out of the workforce for any significant period of time, you may realize that in order to have the flexibility you desire and the work you love after your divorce, you will need to create work that fits your needs.
Of course, if you are in the middle of a divorce, it probably isn’t the right time to start a new business. However, it is a good time to think about it and plan for it. If you want to maximize your independence in your new life, brainstorm now about what it will take to launch your own business. That way, when you negotiate the divorce settlement, you can get what you need. It is never too early to lay the groundwork so that when the divorce decree is final, you are ready to go. See chapter 5, “Launch Your Own Business” (page 131), for more advice.
It doesn’t matter what the motivation is to be your own boss. Many women have found out that it is very possible to earn what they need and enjoy themselves while doing it when they start their own business. Role models abound. As a mother of three, Melissa Kieling struggled finding a product to keep her kids’ lunches cool and safe until lunchtime. So she patented the idea for a lunch bag with a freezable gel built into its lining — and that idea grew into PackIt Personal Cooler. Five years later, PackIt had grown into a $14-million business with products that spanned the lunch, wine, baby, picnic, and shopping categories and with distribution that included more than forty countries internationally.
Don’t let inexperience stop you. Melissa’s business résumé was basically limited to school bake sales. At first, not knowing which steps to take nearly paralyzed her with fear. She overcame this by reaching out to other business owners who could connect her to experts in manufacturing, production, and sales. Each key person she met shortened her learning curve and gave her confidence.
Nusha Pelicano is a single mother, an IRONMAN competitor, and a franchisee with Orange Leaf, the frozen-yogurt company. Pelicano opened her first Orange Leaf location in 2010. Today, she has five locations and another store on the way. As these women will attest, starting your own business is a surefire way to create freedom and independence in your new life. Here are the steps to get started.
Take a Stand for Yourself
Change can only occur when you make a conscious decision to make it happen. I was not naturally entrepreneurial. I spent my career working for a large corporate law firm, until it imploded during the recession. What seemed like a catastrophic event was one of the best things to happen to me, in that it forced me to go out on my own and start my own law firm. This in turn brought me independence and the good fortune to find my voice assisting other women who are navigating divorce. Decide now that you will not blame your ex, the economy, or anyone for your situation. Rather, use this opportunity to create something that will meet an unmet need. When you do this, abundance naturally follows.
Brainstorm
Give yourself permission to explore. Be willing to look at different facets of yourself (your personality, social style, age) and listen to your intuition. We tend to ignore intuition even though deep down we often know the truth. Ask yourself, “What gives me energy even when I’m tired?” How do you know what business is “right” for you? There are three common approaches to entrepreneurship:
• Do what you know: Look at work you have done for others in the past and think about how you could package those skills and offer them as your own services or products.
• Do what others do: Learn about other businesses that interest you. Identify businesses you like and what you like about them.
• Solve a common problem: Is there a gap in the market? Is there a service or product you would like to bring to market? (Note: This is the highest risk of the three approaches.) If you choose to do this, make sure that you become a student and gain knowledge first before you spend any money.
Start Planning Now
Most people don’t plan, but planning will help you gain clarity, focus, and confidence. Start planning now, so that when the divorce decree is finalized, you are ready to go. As you write down your goals, strategies, and action steps, your business becomes real. For now, ask yourself the following questions:
• What am I building?
• Who will I serve?
• What is the promise I am making to my customers/clients and to myself?
• What are my objectives, strategies, and action steps to achieve my goals?
SELL BY CREATING VALUE
Even though we purchase products and services every day, people don’t want to be “sold.” Focus on serving others. The more people you serve, the more money you will make. When considering your customers or clients, ask yourself:
• What can I give them?
• How can I make them successful in their own pursuits?
This approach can help lead you to new ways to hone your product or service and deliver more value, which your customers
