The Impact of Attitude!

While attending a women’s conference in Ontario, California, I had the luxury, yes, the luxury, of meeting Chellie Campbell. Here is a woman who has provided financial stress reduction workshops for over 20 years to business owners. She is also the author of two books and is wildly successful. This woman is in my industry, yet there she stood before me looking ever so professional, but wearing gold tennis shoes and gold fingernails. Immediately I was attracted to her just by her boldness to wear what she wanted. As you know in our industry the standard uniform is a black or blue suit and a pair of black heels. She didn’t look anything like that. She had a smile on her face. I could feel her positive energy. That’s what I want to talk to you about today.

While listening to the presentation, it became very clear to me that we were two peas in a pod. Her attitude is one of joy, prosperity, and peace. This woman didn’t appear to have a care in the world. She continued to explain herself. Her life was filled with challenges, as many of ours are. She had a thriving business that nearly failed. She came face to face with addiction and beat that. Her relationships failed; she had to find new ones. She even had to file bankruptcy at one point,(the bane of all financial planners), but yet she stood before me, glowing, and was a huge success.

How was she able to overcome all these financial and personal disasters and still be so positive? Here’s how she did it then and continues to do it now… she intentionally guards her positive attitude through positive affirmations and choosing to hang around “her people.”

Jack Canfield says, “The power of positive thinking… takes you to where you want to be.” The icon of positive thinking, Norman Vincent Peale, opens his remarkable book, The Power of Positive Thinking, with the following, “Believe in yourself! Have faith in your abilities! Without a humble but reasonable confidence in your own powers you cannot be successful or happy. But with sound self-confidence you can succeed. A sense of inferiority and in adequacy interferes with the attainment of your goals, but self-confidence leads to self realization and successful achievement. Because of the importance of this mental attitude, this book will help you believe in yourself and release your inner powers.” Mr. Peale has sold more than 5 million copies of his book around the globe. Apparently Chellie isn’t the only one who bought into the power of positive thinking.

Check your attitude towards your finances today. Don’t waste another minute. Sweep out any negative messages you’re currently telling yourself. Replace them with positive messages like, “Money just flows to me.” “I live in abundance.” Check your current relationships and choose to spend time with folks who are positive and supportive of you. They will help reinforce the new, confident you.

Check out www.StartSmartAdvisor.com for more ways to empower yourself and win at the game of finance.

© 2010 Start Smart Advisor™, Inc.

Forget New Year’s Resolutions and Vow to ‘Get Real!’

 

 Was ringing in the New Year something special for you this year? Did any resolutions resonate with you? I sat down the Monday before New Year’s Day to ponder what I wanted out of 2010. With that in mind, I tried to come up resolutions for this year and realized I couldn’t because the whole “resolution idea” just didn’t feel “real” to me, and I sense a lot of you probably feel the same way. Personally, in my near 5 decades on the earth, I have never reached a single resolution with the intention set at the beginning of the year. After a lot of soul searching — three nights of it to be exact—my big “ah ha” was that I didn’t want to resolve to hit a punch list of goals, I wanted to approach my life differently.

2010 for me is going to be all about getting real. 2010 is going to be a big year for me: I’m launching a new start up, I’m determined to live my dream, and I turn 50! Yes …now you know my age, but that’s all part of my plan for 2010. I’ve always confessed to be a holistic financial planner, but as an entrepreneur, it proved difficult to follow my own advice. Or at least I thought so. Chalk it up to “maturing,” but it became clear that with a few tweaks of my current lifestyle, I could live my dream and reach a lot of my personal and financial goals naturally, while becoming a “real” mentor for my clients and followers to emulate. So here’s my “Get Real in 2010” plan. Feel free to adopt and modify if it excites you.

Step One: Perform a personal audit on spending habits and get them back to lean and mean. Commit to 30 days of intense honesty in the spending department.

Step Two: Based on the results of the 30-day spending audit, create a cash flow statement  so you can see how much discretionary income you truly have.

Step Three: With “real” numbers to work with, create a budget that is both challenging and rewarding for both business and lifestyle. This is a necessary step for monitoring success. Here is where you cancel the non-read subscriptions, the gym membership you never use, etc. and then update your cash flow statement for an accurate view of your revised discretionary income.

Step Four: Prepare a Balance sheet so you can see where you’re currently at financially. Set goals that address debt elimination, wealth aggregation, and charitable giving for the year. Monitor quarterly.

Step Five: Learn and utilize the TVM (time value of money) principles. For example, take the time to run the numbers for retirement planning or think about the opportunity cost of purchasing a “want” or a “wish” a little bit more before spending freely. Remember to keep your goals close by to help keep in line with your “real” financial plans and accelerate your success as opposed to sabotaging it.

Step Six: Address the “WAM factor” or “what about me” facet to successfully acquiring financial goals. We all know that financial matters can be so stressful that ignoring them altogether becomes a habit many adopt. By addressing the WAM factor, money matters become more of a game than a nightmare. Keeping your emotional self engaged and excited will be easier if you check-in more often and actively, and I emphasize actively! Drive your petit demons away with some physical activity—walk the dog (or yourself) and enjoy your surroundings. If you don’t think there’s anything to enjoy, look again. Sometimes it’s that little flower that finds its way between the sidewalk’s cracks that makes my day.

 Small rewards that don’t involve spending money and invest in your well-being are a great way to play the game successfully and build sustainable momentum.

So that’s it. I’m getting real in 2010 and going to take my own advice and perform these six steps. Come join me, follow me, share your comments, or whatever you like to enhance your financial health and wealth now! And may a purposeful and fulfilling 2010 bring the health, wealth, and happiness we all seek in abundance!

© 2010 Start Smart Advisor™, Inc.

Brown bag or bust!

With the New Year rung in, resolutions abound. We promise ourselves to do this and to not do that while so much of what we choose to do involves our money and our health. Self-sabotage is generally the main culprit when attempting to achieve goals. It rears its ugly head when we don’t have a plan in place that’s easily implemented. For 2010, vow to make self-sabotage no longer acceptable in your life, and pro-actively work against it.
 
In my practice as a CERTIFIED FINANCIAL PLANNER™ Professional, my aim is to bring my clients simple solutions for seemingly impossible goals. So often I hear, “I’m tapped out!” or “What am I going to do? Get another job?” or “I can’t possibly afford to do that!” However, in many cases, I’ve had the sad realization that for the person sitting across from me, resisting change now to improve one’s position in life outweighs the joy of actually achieving the goal in the future. This self-defeating attitude can be overcome by getting clear on what you truly want for yourself and frequently reminding yourself of the goal.

The suggestion I’m about to make is a simple step towards realizing three main goals the majority of us share—to save more, exercise routinely, and weigh less. Is choosing to brown bag lunch to work at least four times a week a possibility for you? Think about it. You could make a significant dent in, if not realize your resolutions by making that ONE change. Let’s look at a hypothetical situation:

If we were to have chicken or tuna salad sandwiches, green salad with grape tomatoes and cucumber slices, and an orange for lunch; and celery sticks with peanut butter and an apple with cheese for mid-morning and afternoon snacks, respectively, and substitute water for your beverage of choice, you could actually lose weight, eat healthier cuisine, and save money! The key is to make simple food that you enjoy.

Here’s the math behind it:

One loaf of high quality bread - $4.00
1 lb. of high quality lunch meat or canned fish - $7.00
Lettuce - $2.00
Grape tomatoes - $4.00
Cucumber - $1.00
Oranges - $4.00
Cheese - $4.00
Apples - $3.00
Celery - $2.00
Peanut Butter - $3.00
TOTAL $34.00

This is the estimated cost for high-quality, non-sale groceries. If you took advantage of discounts, coupons, local produce, and bulk purchases that make sense, you could bring the cost down to $5 or less per day, while still catering to your tastes and preferences.

Now let’s compare that to the cost of eating out. In an effort not to pick on any establishment, I’ve chosen to list a few eateries I know to be packed to the gills with patrons during business lunch hours and to use their lunch specials prices.

So here goes …

Cheesecake Factory ($8 lunch, $2 soda, $1 tax, $2 tip)  - $13.00
Elephant Bar ($6 lunch, $2 soda, $1 tax, $2 tip)  - $11.00
Applebee’s ($9 lunch, $2 soda, $1 tax, $2 tip) -  $14.00
Yard House ($10 lunch, $2 soda, $1 tax, $3 tip) -  $16.00
TOTAL -  $54.00

The difference between brown bagging vs. eating lunch out is $20 per week. If you saved it, (just a suggestion), you could accumulate nearly $1,000 over the course of 49 weeks (52 weeks minus 3 weeks for vacation). I’m sure you could find lunch ingredients for less than $34 for four days, but I wanted to make a point …

…if you spend a little extra at the grocery store to get foods that you enjoy, homemade meals are so much better than going out for lunch, and they can be interesting, even exciting, with a little creativity and effort. Here are some ways how:

Choose exotic snacks, perhaps spicy soy nuts or peanut butter pretzels and celery Make soups with pastina, barley, or mini ravioli’s for a heartier version combined with a simple salad with croutons and a pear (I love this combo, especially with a little feta on the salad!)

Reward yourself for brown bagging it with a mini-chocolate snack. Milky Way, Snickers, 3 Musketeers all have bite-size versions at the local market. Or …indulge with a piece of good dark chocolate and a Clementine orange for an afternoon snack. (Might I say, “Pure decadence! Savor the delicious combination of tastes and fragrances as they linger on your tongue and fingertips.”)

A BONUS:  With the time saved from not having to drive, park, order, wait, and then eat, you can find a quiet spot walking distance from your work station, preferably outside with greenery, eat your meal or snack and then take a 5 to 20 minute walk. You’ll feel so much better and stronger, both physically and mentally.

This relaxing, self-indulgent lifestyle can be yours. All you have to do is simply choose something different for yourself. Invite your peers to join you. Visualize your goal whenever your attitude needs a boost, such as what your version of a successful retirement looks like, or the vacation you’re saving for, or if you don’t have an emergency fund, the feeling of security and self-love that results from taking care of yourself and those you love. It’s truly worth the change in behavior.

So in closing, I challenge you to start smart and brown bag the majority of your lunches if your habit is to eat out during the week. Your net worth could go up while you slim down …not a bad trade off. Let me know your comments if you take up the challenge. I’m interested in hearing how it’s going and how you feel about the changes.

The Real Purpose of an E-Fund!

When I teach my personal finance or investment classes, stories are the medium to drive the lesson into those hard-headed students of mine. I’ll make up names to protect the innocent and share as many personal stories as possible to bring the reality of a given situation into focus. So today, you are getting a personal story.

As most of you know, financial advisors are always touting the necessity of a savings account solely for emergencies. I call this an “e-fund.” Generally speaking, if one is an employee, his e-fund is recommended to be three to six months of expenses. In the case of a self-employed individual, six to twelve months of income is recommended to safely avert financial disaster.

In my experience of my clients and myself, I didn’t ever have a dramatic example of how important the e-fund really is …until last fall.

In September last year, I was in a terrific car accident. We were fully insured as was the person who hit me. However, it became clear very early on that this was a financial disaster for my husband and me. Injuries aside, we needed a new car. To cut to the chase, my 10-year old Cadillac, in excellent condition and with brand, spanking new tires, keys, & tune-up, was worth a whopping $7,000. That was it! $7,000! Having a car payment was not our modus operandi, and to add insult to injury, my husband had his heart set on another Cadillac. Neither of us saw this one coming. We were heart-broken. My class quickly learned that being “fully insured” still meant I’d be responsible to buy a new car—many of them believed, admittedly naive, that insurance would take care of it. But it didn’t!

Just when they all thought their professor was going to pass around a hat to buy a new car, I sprung the fact that we had an e-fund. Thankfully, it was substantial enough to buy the new car, but would deplete it significantly. One suggestion was pretend to have a car payment to build it back up, which makes great sense (they’re learning).

The point was made: without those savings, we could have been in a world of hurt having to get a car loan at significantly higher interest rates than a few years ago. Or worse yet, having to get a car my husband really didn’t want (all married folks will understand that statement .)  So, lesson learned. My students are now thinking much more broadly about the uses of an e-fund. I hope you do too. It can be the difference between starting smart or not at all.

Happy saving!

© 2010 Start Smart Advisor™

Living your dream is your choice!

2009 had two significant events that nearly derailed me—I lost my beautiful and inspirational mother to cancer, and had a terrible car accident that left me quite injured. At one point, I questioned everything. Was I successful? Was I truly making a contribution to my clients and my community? If I couldn’t continue as a financial planner, what would I do? Was all the effort worth it? Did I feel good both physically and mentally? Were my “friends” really my friends? Was my life’s “dream” still my dream? For most of the year I felt alone and isolated even while surrounded by friends and family. I often felt lost and disillusioned. (I know. I’m the only one who’s ever felt like that!)

Enter Timothy Ferriss, author of the Four-Hour Work Week. In his remarkable book (available at Amazon.com), he asked two questions that hit me like a bolt of lightning:

1. If you had a heart attack and could only work 2 hours a day, what would you do, what would you delegate, and what would you let go. And if that wasn’t enough,
2. If you had a heart attack and you could only work 2 hours a week, what would you do, delegate, and let go?

This was an incredible answer to my dilemma with my injury. All I did was substitute “heart attack” and enter “car accident” and that was my life, my doctors’ orders. Immediately, I banished all thought of not being able to remain a financial planner. At that very moment, I started living my dream, injuries and all, using Tim’s tips, suggestions, and strategies.

The key to living our dreams is PASSION. What are you passionate about? What is it that you would scale a mountain for to shout from its top …”Now hear this …”? You might want to give some serious thought to this. I know I did. It’s all I could do while recuperating.

I sorted out quite a lot by asking myself the following questions:

• Did I want to?
• Was it an obligation?
• Does it serve me?
• Could I delegate it?
• Could I eliminate it?

It really is true that most of what we do is for ourselves even though we swear we “have to do it” in the name of our jobs, children, spouses, and friends. Decide to make different choices with your actionable time. By running your tasks, errands, meetings, relationships, reading, etc., through this filter, you’ll be amazed at how much you will be able to eliminate completely or delegate to someone else. This enables you to complete more work in less time, thereby freeing up time to work on things you are truly passionate about.

My recuperation started while working my financial planning business an hour a day until I could work longer. If you would have told me six months ago I would only be able to work 20 hours a week, I would have had a conniption fit and spiraled downward by the weight of self-imposed anxiety and guilt. But that didn’t happen. Instead, I learned how to put me first; something I could never do before. I’ve got more time to spend on the things I value most—my faith, my husband, my friends, and my clients. I never thought I would say that two of the most disturbing incidents in my life enabled a life-changing discovery I am truly grateful for. But then again, doesn’t the phoenix arise and fly out from ashes? Now I truly understand the beauty of the mythological lore.

How does this relate to financial planning? Well for starters, time is a priceless resource. This plan allows you to reclaim your time so you’re free to do what you were meant to do. By decreasing the hours spent on earning an income, yet maintaining or even increasing revenues, your income per hour rises. That makes good financial sense. Again, as a holistic financial planner, I like to look at the client’s life as a whole. This methodology feeds personal values and increases resources that guide and direct our investment policies and decisions, no matter if you’re an entrepreneur or employee. That’s why I’m sharing it with you. So what if it wasn’t all my idea, I learned a lot from Tim. So can you.

I challenge you to use this filter to weed out extraneous expenditures and activities. After a few weeks, take a little time to assess the changes and discover how much more time and resources you have and the impact of those results.

You can live your dream now if you live your life by intentionally choosing what to spend your precious time on and what not to. I choose faith, family, friends, and clients. How are you going to start smart in 2010?

Let me know by commenting below.

© 2010 Start Smart Advisor™, Inc.

The value of creating relationships

This past Friday I was so fortunate to spend a couple hours with some of my favorite clients. It was a joy to finally have some good news on the portfolio returns to report to them, and needless to say, they were quite relieved. But that wasn’t the highlight.

The highlight was the conversation we had. We were able to discuss the matters most important to them, but it didn’t stop there. We were really getting to know each other even more. At one point in the conversation, Pam (not her real name) made the comment that if Plan A didn’t work out, she’d simply revert to her Plan B. However, knowing her as well as I do, and her husband, I was a little shocked at her flip remark. I asked her if she was really serious about Plan B and she replied, “Yes.” My response was an emphatic, “Oh NO you won’t!” A little wide-eyed she sheepishly asked, “Really? Why?” Knowing her, I was able to tell her, “You don’t want to do that. You’ve told me over and over that taking that route would signify defeat, and we have so many options to choose from that would thrill you. We will not slink back because it’s easy. Making a different choice that serves you better is just as simple as the making one that deflates you of your energy.” After all, they have the resources to do whatever they want with planning and proper execution at the right time. I thought her husband was going to fall off his chair.

And that’s the key folks. When working with an advisor, you need to work with one you can really talk to, trust, and reveal your true needs, wants, and wishes. Knowing Pam and Ted (another fake name), I knew that the last thing they wanted to do was return to where they had come from. My flat refusal to entertain Plan B reinforced the fact that I am on their side, working towards their achievements of their goals. Both Pam and Ted felt reenergized by the realization that there were other options and were grateful that I reminded them of all the choices they could make beside the one they didn’t want to realize. My reward was Ted telling me that his last broker never had conversations with them, he just reported to them what we was going to do without asking how they felt about any of it.

Times are difficult now and can be confusing when faced with situations we weren’t planning on. There is a bevy of choices one can make if: 1) they know what they are, and 2) have the knowledge to make an intelligent and informed choice. Working with an advisor who takes the time to really know you, understand your motivations behind your goals and fears, can alleviate useless worries and anxieties and enable the realization of your dreams if you just take the time to find the advisor that fits with you. You can find a CFP® near you through the FPA and CFP® Board of Standards links available on my Resources page. You’ll be glad you did.
Don’t hesitate to comment or contact me with any questions or concerns. Until tomorrow …have a great day and happy reading.

© 2009 Start Smart Advisor™, Inc.

For more info: Here’s the link to an FPA article on why a CFP® is the best choice when working with a financial planner: http://budurl.com/6xdp.

Independence Day …are you experiencing financial freedom?

Happy July 4th!

Today is our nation’s independence day, the day we proclaimed ourselves free as a country. I love this day. It’s always full of celebration. Whether it be hot dogs and hamburgers or wine and cheese, we always finish with fireworks. When I watch those fireworks, I think of our national anthem, especially the part where we sing, “bombs bursting in air.” I’m always so grateful for the men and women who sacrificed themselves so that I could have the power of vote. To me, the vote signifies freedom.

As a CERTIFIED FINANCIAL PLANNER™ Professional, or CFP®, I suppose I should somehow bring us to the subject of financial planning. It won’t be painful. I promise. Let’s just take a moment to think about independence and freedom and how they relate to our personal financial situation. Do you know your financial independence date — the date when you no longer have to work? Have you actually thought about what it would feel like to be financially free? I encourage you to think about this seriously.
In order to achieve financial freedom, the equation is quite simple. You simply need to make more money than your expenses. For some people they limit their income solely to their job. However others try and find several revenue streams, including passive income. For the latter group, their goal is to have their passive income eclipse their expenses so they are financially free to spend their time doing what they love as opposed to working.

If financial freedom is something that you crave and are willing to make sacrifices for, I encourage you to find a mentor or advisor to guide you in this endeavor. It is completely and totally possible for you to achieve especially with guidance. Remember advice is cheap, mistakes are costly. The choice is yours!

© 2009 Start Smart Advisor™, Inc.

For more info: Today I would like to suggest two books for your reading pleasure. The first is written by Robert Kiyosaki entitled, “The Cash Flow Quadrant.” The other recommendation is called, “The Millionaire Next Door,” by Thomas Stanley and William. Danko. Both can be found at Amazon.com. Enjoy some summer reading!

Estate planning celebrity style

With the passing of so many celebrities recently, Michael Jackson, Farrah Fawcett, David Carradine, and Karl Malden, there’s been much more talk about proper estate planning or the lack of it. How does one take care of their estate when they’re a celebrity? How are they able to keep everything private? The answer is simple… estate planning. Some of the celebrities who passed away without proper estate planning were Heath Ledger, Jerry Garcia, Anna Nicole Smith, and Elvis, to name merely a few. Apparently Mr. Jackson did some planning, but didn’t update his documents in over seven (7) years. Hmmm. You think that served him and his surviving children? And what about poor Brittany? Remember the commotion when she was declared incompetent and hauled away in an ambulance? Sure the paparazzi made the event a total spectacle. But Brittany’s lack of personal planning created the real nightmare during a real low point in her young life that affected her infant sons, her career, and everything in between.

When celebrities neglect this step, disaster strikes and we all get to witness the train wreck. When we screw up and omit this step, no one sees it except those directly involved. As a financial advisor, I want to ask you, “What have you done to protect your family and estate?” Many of you are probably thinking, (lol), “I don’t have anything to plan for. I don’t have an estate. What do I have to protect? And why would I need estate planning celebrity style?”

Well, to respond to your thoughts there, you may or may not have something to plan for. However, the size of your estate doesn’t excuse you from executing basic estate planning. It is this plan that makes sure your family and financial goals are met after you die. Now I should disclose right here that I am not an attorney, so this should not be considered legal advice. But, it is general information that’s required in order for you to retain your own estate planning attorney and take care of this. So if you own a home, (and it doesn’t matter if you have a mortgage or not), insurance policies naming others as beneficiaries, and other assets, chances are you need some estate planning. If you have children, you definitely need estate planning. If you own a business, you certainly need to speak to your attorney about it.

And if you’re not thinking along those lines, but have done estate planning in the past, now is a good time to dust off that binder, refresh your knowledge of facts, and review your personal documents. You may find you need an amendment or another document that was either overlooked or now needed due to changing circumstances.

There are several documents that can make up one’s personal estate planning. I will list the main elements here in this article and then explain each one in subsequent articles. Here we go:

• Revocable living trust
• Revocable living trust amendment
• Certification of revocable living trust
• Community property agreement
• Last will and testament–Pour over well
• Financial durable power of attorney
• Healthcare durable power of attorney
• Living will or Directive to physicians
• Letter of direction for distribution of personal property
• Information for survivors
• Planning for catastrophic illness or incompetency
• What to do when someone dies
• Working copy of RLT

To properly protect yourself and family from probate fees, creditors, and predators, you will need some, if not the majority, of those documents. Again, I will explain what each document is and why you need it throughout the series.

Here is my disclosure one more time …I am not an attorney, so you’ll want to retain one to help you take care of you and your family. By gaining insightful and useful information, you will better understand why this type of planning is essential and how to go about getting just what you need. I look forward to this series of articles and hope you do too.

© 2009 Start Smart Advisor ™, Inc.

Setting your course to financial freedom

Welcome to my first blog on the Start Smart Advisor website. I’m so excited to have this opportunity to share with you some of the knowledge that I’ve been able to gather for nearly 10 years as a professional financial planner and over the last 40+ years (now you have a clue as to how old I am) in finding ways to make my financial goals and dreams come true. In this blog is my intention to share with you ways to balance your life and your finances so that you can reach your financial goals and dreams and ultimately financial independence.

Financial planning for many has been akin to going to the dentist — an unsavory and painful experience. However in my experience it’s quite the opposite. By having a plan, I set boundaries for my financial life. Once those boundaries have been set, it makes it so much easier to stay on the course that I’ve designed. I like to think of it as staying on a paved highway towards financial freedom instead of wandering off the path aimlessly, finding myself lost in the weeds and bushes of debt, and feeling frustrated, hopeless, and like a loser.

With a little planning, you can make most anything a reality without breaking the bank. Pinnacle moments in our lives, such as getting married, having a baby, purchasing a home or car, sending your children to private school or college, or taking a dream vacation, can all be achieved if only given a little thought beforehand and the time to make it happen. Knowing what your goals and dreams are makes it easier to stay on track without getting sidelined. The goal of this blog is to help you formulate a plan and stick to it. You decide which path you like to take. The choice is yours.

© 2009 Start Smart Advisor