Why Celebrations are Important

PIC_Feb 6th_ARTICLE_Celebration pic with DanaOK, so you might be thinking to yourself – Beth, we just wrapped up the holiday season full of celebrations, and you want us to celebrate AGAIN?

Yup, I do. Celebrating is a lost art form as far as I’m concerned, and to be quite honest I’ve personally had to train myself to do it more often to acknowledge not only the big things but also the little things too!  Yes, I’m a “celebrator-in-training” just like many of you might be.

As I’ve found over the last few years (and more specifically over the last 6 months if I’m being honest), like attracts like which means success attracts more success and celebration attracts more celebration.  In other words, the more you acknowledge something great, the more the Universe will say “oh, he/she gets excited about that – we like excitement – let’s give him/her more of that!”  (Yes, I’m going a bit spiritual here with some “Law of Attraction”…so bear with me if that’s not usually your “thing,” ok?)  Celebrating raises the positive vibrations surrounding you and encourages more of the same positive results to be delivered to you.

As an example in my own life (since I always find it helpful if someone shows me how to do something new that I’m trying to learn), I’m thrilled that January 2014 was the best month EVER in my business and that I found 6 brand new and amazing clients to work with in the months to come!  I started my celebration this past weekend with some much needed “down time” to relax and really let everything that had happened this month sink in and then I celebrated with friends and family (see the pic of me having a celebratory cocktail with a good colleague last week in the picture!).  I also played hooky earlier this week to sneak off and see a movie by myself during a snowy day when I didn’t feel like working.  And this is just the beginning of my celebrations – I really want to anchor what this last month felt like, because I want more of that type of amazingness (so that’s probably not a word but who cares, I’m excited!)!

As it relates specifically to your finances, sometimes the road to financial freedom and financial independence can feel long.  Truth be told, that road is paved with small steps taken over time to build up your financial skill set and financial health – proactive money management skills and a well thought out financial plan doesn’t just come together overnight!  On your lengthy financial journey, there are likely some things that you can celebrate and acknowledge for yourself, so let me get you started with a few ideas:

  • You opened your latest statements for the first time in a long time (bank, credit card, etc.);
  • You reconciled your checking account;
  • You listed out all of the debt that you owe with corresponding details (interest rate, due date, min. payment);
  • You put together a Net Worth Summary (Assets – Liabilities);
  • You looked at one month’s worth of cash flow (income and expenses) to get a better understanding of how you use your money;
  • You got a raise at work;
  • You started a savings account;
  • You saved up for something in advance and paid for it outright;
  • You paid down (or paid off) a piece of debt;
  • You had a money conversation with someone important to you (spouse, friend, co-worker, etc.);
  • You reached out to a financial professional for help with something (taxes, investments, insurance, etc.).

The ideas above may not feel like much (and clearly there are many more examples that I could include), however I’d like to encourage you to see each step on your journey to financial freedom as something worth celebrating.  And, of course, I believe in celebrating in moderation or within appropriate parameters given your individual circumstances!  Sometimes the best celebrations don’t need to cost much (like the movie I snuck off to see) or they don’t cost anything (like the dream car I’m going to go and test drive this weekend just because I can…it’s free, at least for now!).

And lastly, when you’re wanting to truly acknowledge and anchor successes in your life (in any area, really), I’m also a big fan of having a “success journal.” What is that, you ask?  It’s a chance for you to write down each of the successes (big and small) that you have along the way because sometimes we forget our successes and we need to go back and read them to be reminded of the good that we’ve done!  I keep a success journal by my bedside and each night before I go to sleep I list my top 5 successes of that day (financial and other).

So what have you done recently to improve your financial health that you would like to celebrate?  And if you haven’t done anything lately, is there something small that you can do to get yourself started and in action?

Start small, take action, celebrate and document your success along the way…and then rinse and repeat!

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Building a Powerful Financial Team

As I’ve continued to interview the experts for The Financial Health Telesummit, one theme has consistently come up that I realized I haven’t written about yet – the importance of having a strong financial team to support building and strengthening your financial foundation.

One expert even put it like this – why do we expect ourselves to ask for help in all of the other areas of our lives (i.e. car repairs, house repairs, etc.), yet we don’t always think to ask for help (or feel ashamed to do so) when it comes to our money?

I couldn’t agree more.  Having a strong financial team in place is a critical component of becoming financially literate and powerful.  Even someone like me (who was raised in a household where proactive money management was taught and who is a CPA herself) has people on her own financial team – a CPA (who specializes in taxes because I don’t), a financial advisor, insurance professionals, and attorneys, just to name a few.

So, who are the key players to a solid financial team and why do you need them?  Great question!

  • CPAs – Certified Public Accountants (or CPAs) are individuals who are trained in understanding the specific rules and regulations in a variety of different areas (i.e. audit, tax, etc.).  In terms of the most commonly used CPAs for individuals and small businesses, CPAs who specialize in understanding taxes are often the most helpful.  CPAs can help you keep more of the money that you make by helping you to legally take advantage of each and every tax deduction for which you’re eligible.  I typically recommend considering working with a CPA in two instances: 1) you simply don’t understand how to effectively fill out your own taxes and would be better served by having someone to help you with them (many people fall into this category) or 2) your particular situation is complicated and you may miss an opportunity to reduce your taxes because you are not a tax expert.

 

  • Insurance professionalsLicensed insurance professionals can help you to manage your risk in a variety of different areas, with different types of insurance including (but not limited to): property, casualty, life, disability, health and long-term care.  Each person’s situation will be different in terms of the amount and type of insurance that they need, and having someone who can help to ask you the right questions and make decisions with you on what serves you best can prove to be very helpful to protect you and your loved ones.

 

  • Estate planning attorneys – Attorneys who specialize in estate planning are often looking to help you with drafting legal documents such as wills and trusts in addition to other specialized legal documents that you may need to protect your assets or your loved ones.  These attorneys may also specialize in certain areas of the law (including family planning or elder care) as they seek to understand your particular situation and help you legally document your wishes and communicate those wishes effectively with your loves ones and with the courts.

 

  • Financial advisors/planners – Financial advisors and planners help you to take a look at the entire picture of your financial health from insurance, to investing, to looking forward to retirement to see what your income sources will be.  These professionals are great at helping you to understand your entire picture and to assess any “gaps” that you may have in your financial plan (short-term or long-term), so that you can patiently work through and address those gaps to be able to sleep well at night.  They also help you to focus on protecting and growing your financial assets.

And now that we’ve addressed who the key players are, another question I’d like to address is this – where do I find someone that I like and how do I know they’re the right person for me to work with?

If you’re not sure who to reach out to for help, I recommend 2 approaches: 1) ask a financial professional that you have an existing relationship with to recommend someone to you, as they often have a close knit group of people they know, like and trust and would be happy to connect you with; or 2) ask people around you (friends, family) who they work with and would recommend.  As you’re considering who to work with, I also recommend interviewing more than one person in each category so that you can find the professional best suited to your situation and who aligns well with your personality.

In terms of how to know whether someone is the best person for you to work with, there are usually 3 key things to assess from my perspective: 1) there’s a sense of ease in your conversations with the professional (i.e. you feel as if you can trust them); 2) it feels as if the professional is talking with you and not at you (if they’re talking too technically or with too much financial jargon and they seem to be annoyed when you ask questions, it’s time to excuse yourself and look for someone else); and 3) they have a service mentality vs. simply seeing you as dollar signs (if you get that icky “pushy” feeling from someone, it’s time to find someone else!).

In the end, there are a lot of fantastic professionals out there waiting to serve you and get you in the best financial shape of your life – you just need to know who to look for and how to find them!

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How to Realign Your Finances in the New Year

It’s everyone’s favorite time of year to talk about resolutions, and one of the biggest ones is typically in the area of money and finance.

But there’s a problem with resolutions from the way that I see it – the energy of the word “resolutions” is just so damn HEAVY.  In fact, I really dislike the word “resolutions” (and I would actually say that I hate it if my 3-year old nephew wouldn’t tell me not to say “hate” because it’s a bad word…Auntie Beth has been humbled a few times on her vocabulary lately by her favorite young men.)

Don’t get me wrong – I fully encourage anyone to make a commitment to learning more about proactive money management and to gain clarity about how they’re using their money on a day-to-day basis, while saving money and getting out of debt.

It’s simply that I prefer to think about new possibilities instead of resolutions. Inspire yourself instead of feeling heavy about making what can sometimes be a scary change if you’ve never learned how to manage your money.  Ask yourself this question – what would life be like IF I knew how to intentionally, authentically, and proactively manage my money?  My guess is that this question will get you thinking in a more positive manner about why you want to improve your financial knowledge (instead of simply feeling like you “should”).

Also, be realistic – I find that people are often looking for a one-trick-does-it-all solution.  I’m here to tell you sadly that it’s not there…sometimes it took you a while to get into the situation you’re in, and so the reality is that it might take you a while to get yourself out of it.

So if you’re looking for a way to begin connecting with and realigning with your finances in a more powerful way, here are 3 steps to help you get started on improving the state of your personal finances:

 

1)    Assess the level of your financial health – Depending on whether you’re looking to build, protect, or grow your financial assets, you may require a different level of expertise or support.  While the majority of people I meet (i.e. 70% of people living paycheck to paycheck) often need help with learning the systems and structures of an effective money management system so that they can build a stronger financial foundation, sometimes people may need help with protecting what they already have (i.e. insurance, estate planning, etc.) or growing what they have (i.e. financial planning).

If you’re looking to protect or grow what you have, the best bet is to ask colleagues, friends or family members for a referral to a trusted professional.  However, if like most people you’re at the beginning phase (building) of understanding your financial situation, then the next 2 steps will help you to get the information you need.

2)    ASK: Where am I now? – When I’m trying to share with clients and people I meet how they can get started on improving their finances, the first thing I explain is the concept of using a “financial GPS.”  It’s similar to the GPS that we use in our cars, it’s just for finances – and without this you are forever trying to get to a destination that you can’t efficiently get to (remember how the shortest distance between two points is a straight line?)!  When you’re programming a GPS, you need to type in a “point A” – for your finances, this means that you need to understand where you currently stand before you can really make any impactful decisions about how you can get where you want to go.

In order to determine your financial “snapshot” (or point A, if you will), there are 2 main steps to take: 1) understand your Net Worth (Assets minus Liabilities) and 2) understand your monthly cash flow.  For the cash flow, I recommend summarizing at least 3 months of recent cash flow in order to have a solid base of information about your money map (i.e. income and expense details).  (PS – I know that pulling together this information can seem scary sometimes, but take it one small step at a time…and keep breathing, it will be worth it in the end!)

3)    ASK: Where do I want to go?  As you know, the next part of programming a GPS is to set your destination…or point “B,” if you will.  What are your goals (financial and otherwise) in the next year, 5 years, 10 years, or beyond?  Do you want to focus on eliminating debt?  Saving more?  Taking a trip?  Starting a college fund for your child?  Deciding how you want to consciously use your money as a tool to achieve your goals is a really important part of designing a financial plan that works for you and your life.

 

With these 3 steps, you’ll be able to better understand what I like to call your level of financial alignment.  In other words, are you using money in a way that truly supports what you want in your life? Or, are you doing as many people do and spending unconsciously without thinking about whether you’re spending on things that matter to you (what I like to call being “financially authentic”)?  Being financially aligned and authentic can have a tremendous positive impact on eliminating financial struggle and strengthening your financial foundation as quickly as possible.

In the end, while the steps are simple they will take some time, however I promise that by understanding the “point A” and “point B” of your personal financial GPS that you’ll move more efficiently (in a straight line!) toward your goals.  As I always say, money is a tool that when used powerfully and to your advantage can provide you with more choice and the ability to contribute in a bigger way…is 2014 your big year?

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Money Management Interviews to Start 2014 Off Right

Please enjoy these 2 interviews that I did in November that will help you to learn more about how to live a financially authentic life.  I hope you learn something new to help you start 2014 off on the right financial footing!

The Magic of Life – Blog Talk Radio with Max Ryan (November 13, 2013)

Breaking Free – with Marilyn Shannon (November 25, 2013)

 

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How to Assess and Improve Your Level of Financial Health

When I first started working as a financial coach, many people would mistake me for a financial advisor or financial planner.  They thought I was someone who would help them learn how to invest their money for retirement.

And while financial advisors and financial planners are dear colleagues of mine and are very talented professionals, my work is very clearly in a different space where I’m helping people with their budgeting and money management skills so that they can focus on getting out of debt and saving money with the hope of building a financial plan to support their goals.

So in order to help people better understand what I did (and what I didn’t do), I created what I like to call “The Financial Health Spectrum™” which includes the 3 phases of Build, Protect, and Grow your financial assets.  These 3 phases simply reflect different levels of financial health, and while none of the phases are “bad” there is an increasing level of financial health as you move from the “Build” phase through to the “Grow” phase.  In helping people to understand what type of financial support they need, I encourage people to take a few minutes to assess where they fall on this spectrum so that they can properly identify which financial expert can help them with their goals and with improving their level of financial health.

In order to help you determine where you might fall on the Financial Health Spectrum™, let me explain each phase a bit further along with the respective professionals that you might want to connect with:

1)    Build phaseThis phase is typically where the 70% of people living paycheck to paycheck who are feeling out of control when it comes to their finances will land.  When building your financial assets, you’ll be looking to do such things as establish a budget (or what I like to call a “savings and spending plan” because budget is such a restrictive word), develop more proactive money management skills, get out of debt, and save more money.  To me, this phase is about improving your financial stability and strengthening and repairing your financial foundation so that in the future you can grow your financial assets. In this phase, you might look to work with someone who can help you increase your income, decrease your expenses, or perhaps do both!  This is the phase where I work with my clients, and some other colleagues who can help you in this phase include CPAs, money mindset coaches (to help you understand if you have money beliefs that are holding you back in some way), and salary negotiation coaches (so that you can maximize your earnings).

2)    Protect phaseThis phase is generally exemplified by wanting to either insure assets (property and casualty insurance, life insurance, health insurance, disability insurance, or long-term care insurance) or planning to have your wishes known about what to do with your assets in case anything happens to you.  Experts in this phase include licensed insurance professionals who can help you determine the right type and amount of insurance that you need and estate planning attorneys who can help you with drafting all necessary legal documents such as wills, trusts, family planning/guardianship paperwork, health care directives and proxies, and also Medicare/Medicaid paperwork.

3)    Grow phaseAt the end of the spectrum, once you’ve strengthened your financial foundation and protected the financial assets that you do have, you’ll also want to think about putting your money to work for you and growing it through investments and other financial vehicles (i.e. annuities, etc.).  The financial professional you’ll want to consider in this phase is a financial advisor or financial planner who will take the time to understand your future financial objectives and design a plan customized just for you to grow your money over time to achieve your goals.

As mentioned before, there is no “right” or “wrong” phase to be in, these phases are simply an opportunity for you to recognize where you’re at right now and determine the next steps that you’d like to take for yourselves to improve your financial health.  I also encourage people to think about moving along the spectrum as a longer-term process since strengthening your financial foundation and building financial independence is often a multi-faceted journey that takes place over time and with attention to progress (and not perfection).  It is also important to note that you may be in more than one phase at the same time (i.e. saving for retirement while looking to more proactively manage your monthly cash flow and put the proper legal paperwork in place).

So if you’re ready to get more information on how you can assess your financial health, make sure to stay tuned for more details coming soon on “The Financial Health Telesummit” coming in January 2014.  It’s a free event that you can attend from the comfort of your home phone, computer, or your favorite listening device (iPod, iPhone, etc.) with some of my favorite colleagues and financial experts who will help you to decide on the next steps to take in improving your financial health!

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