Money Matters

This month, since it is tax season and money is on our minds, we'll focus on handling those pesky financial matters. Money, investments, bills, savings….For many of us, these are not words that bring feelings of security and relaxation. For many of us, we try not to think about money very much. Not thinking about it very often is OK, once you have the basics taken care of, once this part of your personal foundation is under control. Otherwise, ignoring your money is one of the worst things you can do.

Here is a story from one of my recent life planning workshops to bring this point home. An attendee (I'll call her Kathy) was a woman approaching retirement age. During one exercise, participants look at their current financial situation and then anticipate where they will be five years from now. Kathy said she didn't want to think about it. She said, "It's just too depressing. In five years, I'll be sixty-five years old and I'd like to retire."

All of us in the session came to learn that Kathy had a major problem…she had absolutely no money saved, not a dollar, not a nickel! Needless to say, we were all deeply affected by her acknowledgment. Our thoughts flew to consider her situation five years from now. What would she do? How would she live? We hear frequently how little Americans save. In fact, the average American has $8000 in credit card debt.

At that workshop, these statistics took life and everyone in that classroom was made to confront their own fears about money.

So, what happened to Kathy? I wish I had happy news. I wish I could say the workshop had a positive impact and she went on to make major changes in her life. I asked her to learn the specifics of her social security benefits and to start saving immediately, even if it was a very small amount. She said she had thought about saving, but what good would saving $25 a month do? (She felt that was all she could spare.) She said it all seemed so useless. She said she just didn't want to think about it.

Kathy did not return to the workshop for the second night.

How are you like Kathy?

THIS MONTH'S ACTION STEPS

Following is an excerpt from a program every new client of mine begins with called "The Clean Sweep Program." What follows is the portion concerning Money. The Clean Sweep Program is a checklist of 100 items which, when completed, give you more personal freedom. The 100 items are grouped in 4 areas of life (Physical Environment, Health and Emotional Balance, Money and Relationships) with 25 in each group. These 4 areas form the cornerstone for a strong and healthy life and the program helps you to clean up, restore and polish these key aspects. It's your first step to establishing a firm Personal Foundation.

Your assignment: See how many of the 25 items below you can check. Your goal is to work on this list until you complete 25 out of 25.

1. I currently save at least 10% of my income.
2. I pay my bills on time, virtually always.
3. My income source/revenue base is stable and predictable.
4. I know how much I must have to be minimally financially independent and have a plan to get there.
5. I have returned or made-good on any money I borrowed.
6. I have written agreements and am current with payments to individuals or companies to whom I owe money.
7. I have 6 months' living expenses in a money market-type account.
8. I live on a weekly budget which allows me to save and not suffer.
9. All my tax returns have been filed and all my taxes have been paid.
10. I currently live well within my means.
11. I have excellent medical insurance.
12. My assets (car, home, possessions, treasures) are insured.
13. I have a financial plan for the next year.
14. I have no legal clouds hanging over me.
15. My will is up-to-date and accurate.
16. Any parking tickets, alimony or child-support are paid and current.
17. My investments do not keep me awake at night.
18. I know how much I am worth.
19. I am on a career/professional/business track which is, or will soon be, financially and personally rewarding.
20. My earnings are commensurate with the effort I put into my job.
21. I have no "loose ends" at work.
22. I am in relationship with people who can assist in my career/professional development.
23. I rarely miss work due to illness.
24. I am putting aside enough money each month to reach financial independence.
25. My earnings outpace inflation, consistently.

©1998 Coach U, Inc. All rights reserved. May be freely duplicated by Coach U students and licensed users ONLY

If you are interested in more ways to improve your finances, ask me to send you a copy of my Top 10 Ways to Cut Your Monthly Expenses.

Have a financially rewarding April.

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