Volume 1, Issue1 August 2006

Welcome to ‘Momentum'!

After meeting the umpteenth person that felt intimidated by the thought of talking to a “financial planner” I knew I needed reach out and help dispel some misconceptions. Some people don't even know what a financial plan is, others are embarrassed to because they think they don't have enough money or what questions to ask. Even more importantly, “How will I ever get there? It is too late for me!” If this is you, then ask yourself this, “How do you eat an elephant? Answer, “One bite at a time.” So let's have some fun and make money doing it. We are allowed to do both after all!

I chose this name Momentum because I truly believe that the word captures the essence of living life. Once we get momentum in our lives, it enables us to be confident and realize our potential for unlimited possibilities!

Each of us has dreams and aspirations. With even a small commitment these can be realized. This commitment is a plan or "road map" so to speak. The combination of the two will create an energy and force of its own. This is your momentum.

By educating people about finances I can help people achieve their goals and live the things they have passion for. After all – isn't that what we all want – a reason to get out of bed in the morning – to be able to spend our time and money on our passions!

Every month Momentum will include Investment and Insurance articles, as well as really interesting articles from other sources and some for just pure fun!

I would love to have your feedback of your impression of this, my first issue. Suggestions are welcome!

Enjoy and live 'On Purpose!'

ONE MOMENTUM THOUGHT
A sailor without a destination cannot simply hope for a favourable wind!

Shari Molchan

Are you behind with retirement planning and are embarrassed to admit that you don't understand all that financial ‘stuff' or are do you feel that you are to old to start , and so far behind, you'll never catch up?

Why is it some people that are successful in the rest of their lives, are no good at managing their money?

In my experience with my clients, I find that they may have had financial planning or advice that has not filled them with confidence. They have felt that in order to succeed they have to alter their life completely, or even worse have the belief that someone else will do it all for them. Some have and lost a lot of money.

So no wonder if you are nervous.

Very few people have the discipline or circumstances to achieve goals that they may have been told by other advisors.

It's no wonder that most people end up feeling hopeless and give up, falling back into their old habits. Managing your money ends up suffering the same fate as quitting smoking or losing 20 pounds.

Wherever you are now, and whatever age or stage of life you are at, you can build a plan that will work with your situation and your goals. It is never too late.

What's your motivation to make a change?

•  Finances out of control

•  Doing Ok but not sure if it is going to be enough?

•  Don't know where all the money goes that you make?

•  Confused about all the financial information out there?

•  Used to save but cannot find the money anymore?

•  Want to get on track?

•  Just beginning and want to do it right form the start?

If you are going to be successful – it won't be because everybody thinks you are. It will be because you have set your own goals and built a roadmap. You have taken and planned the steps to make it happen.

The wealthiest people are not those who have the most ‘stuff'. They are the ones that have managed their lifestyle to who they are and what they want to achieve. It is both tangible and intangible results – mostly a peace of mind to be able to do their passions.

What is your financial attitude? It controls the way you spend.

Let's find out if you are a Spender, Builder, Giver, or a Saver.

Let's take this short quiz;

1.

A) I love to shop!

B) I only shop when I need something

C) Sometimes it is okay – but I would rather shop for other people

D) Do not like shopping!

2.

A) I can use my credit card and not worry if I can afford it

B) If it is an investment – why not use the credit card – I'll pay later

C) I let my kids use my credit cards

D) I can build up a credit rating with a credit card – and it is better than carrying

cash

3. If I go out to dinner with friends

A) We split the bill evenly

B) Sometimes I pay – sometimes they pay, it all works out

C) I crawl over the table to grab the bill

D) We ask for separate bills

4. If I see something I like

A) I buy it

B) Buy it if I was planning on it

C) Buy one for me and someone else – after all it is a good deal

D) Most of time, I talk myself out of it

5. If I won a large amount of money on the lottery

A) Never think about money ever again

B) Use it for doing something important

C) Spend it on friends, family, my favorite charity – but I will keep enough to live

on

D) Pay off my bills and mortgage, and then make sure my family was also taken care of

 

6. If I did not have any money in the bank I would

A) Use my line of credit and credit cards – that's why I have them

B) Use credit for leverage opportunities

C) Worry what other people may think of me

D) Have anxiety attacks

7.

A) I do not know where I spend my money each month

B) I know how much money I have available – but, if something good came up….

C) I want my money to go to family or charity – I want to make a difference

D) I have a handle on all of my accounts and investments

8. I love to use my money to

A) Live life to its fullest

B) Follow my passions and stretch myself

C) Help others and make them happy

D) Save for a rainy day and the future

9. When I go shopping for something I need

A) I come home with more than I planned

B) Get in and get it and get out

C) Take a look around - I might find something for someone else

D) Check flyers and shop around to get the best price

10. When I give to charity I

A) Give to the ones closet to my heart

B) Give to the ones that mean the most to me

C) Give more than I should because others need it more than I do

D) Pick a couple and give them a set amount each

11.

A) It is important to get a new car every 3 years

B) If you buy the right car it is a good investment

C) The whole family should each have a car – saves a lot of time

D) A car can last for years if you take really good care of it

12. When somebody has a new car I ask

A) Did you get it fully loaded?

B) What kind of car is it?

C) Do you like it – are you happy with it?

D) Did you check the Lemon guide and the Consumer reports?

13. How do you choose your RRSP?

A) What RRSP?

B) My retirement plan is to sell my home/ business/ property

C) I have a financial advisor to takes care of all that!

D) Very, very carefully

14. When I go on vacation

A) it's all about being pampered

B) Work out a way to get some use out of it

C) Take my friends or family with me

D) Look for the best deals for a low cost

Add up all the As, Bs, Cs, and Ds you have. The highest score is your type. Now most people, including myself, are not one type entirely, but one attitude will govern you. So by knowing which type you are, this will give you an idea of why you spend money in certain ways and how that affects your passion list for the future.

 

Here are the 4 types:

A) SPENDER

Motto: You only live once

Dead giveaways: new car, latest gadgets and toys, vacations (mostly purchased with credit card or loans)

Spenders want to keep up with the ‘Joneses' (They are the Joneses). There house is decorated by a designer or themselves – because they love to shop for ‘neat' things. They will know where to get the best and latest ‘in' things that you cannot do without. They like money because they can use it to ‘buy' things. They need something tangible rather than something abstract like savings. Now this does not have to be an object – it can be going to the best restaurants, traveling, going to courses, even shopping can be a form of entertainment.

Danger for Spenders is they spend everything they have – and then some. They have the hardest time saving money. If you are a spender and do not pay off your credit cards every month, or have what seems to be a permanent ‘line of credit' you could get in trouble.

Attitude adjustment: Once a spender makes up their mind and buys into taking their savings and expenses right off the top and then they can spend the rest, they are on their way to success.

Famous Spender: Elton John. He has 15 Bentleys – and is known to have spent 1.1 million dollars in one day. He travels with 2 truckloads of possessions wherever he goes.

B) BUILDER

“Make it so”

Own their own business, have big projects on the go, workaholic.

For builders – money is a tool. They use it, and sometimes risk it to turn their plans into reality. They get joy in the creating. Self made millionaires are an example of this type, but builders can also work in mindless jobs, and pour all their time and energy into restoring cars, painting, or hobbies. Most entrepreneurs are builders too.

Danger for builders is they may be so intent on building that they don't leave room for any errors or miscalculations. An entrepreneur may expand their business without creating a cushion, or a car collector who spends the savings account on a collector car. They also may tend to start projects and not finish them, which may lead to selling at a loss.

Attitude Adjustment: Developing a plan and portfolio is like building. Once they get interested in using their creativity, they are onward and upward.

Famous Builder: Bill Gates.

C) GIVER

“ Al ways better to give than receive”

Are on more than one committee, their kids or grandchildren are well dressed, they get a lot of mail from charities.

We cannot get along with out the givers in this world. They are the volunteers, donors to charity, and great friends. They feel good taking care of other people. They buy gifts for their friends and family that they would not buy for themselves. They will deny themselves for their kids. They put time, energy and money into what they believe in. They get a lot of pleasure in making other people happy.

Danger for givers is they can get into trouble when they ignore their own needs. If they are helping their kids get into their first home at the expense of their own retirement income, they could end up as a burden to their kids in the long run.

Attitude Adjustment: Once they understand that if they take care of themselves they can better take care of others, they are happy to get on the program!

Famous Giver: Elvis Presley. He would give his buddies Cadillac's; he bought Graceland for his mom – gave countless to charities, and died not a very rich man. In fact Priscilla Presley had to open Graceland to the public to make ends meet.

D) SAVER

“A bird in the hand is worth two in the bush”

Bag lunches, passbook printed bank accounts, gold appliances.

If we did not have savers in this world, who would the rest of us borrow from? They can get to where everyone else wants to get but in less time and for less money. Other types cannot figure out how they do it. Savers can spot money wasting activities and avoid them. This leads to us thinking that they are cheap. They are not impulsive and they are most often very organized. Some are good investors – but some are too conservative and do not want to risk anything.

Danger for savers is being too conservative. This can effect their investments to not grow as much as they could. Sometimes they postpone spending and it is too late to enjoy the fruits of their labour. How many stories from ago have we heard of a saver who never spent anything and always went without – then retired and lived for less than 5 years.

Attitude Adjustment: Once savers reach the ‘enough' number for them so that they can meet their security needs while still having fun along the way, they can relax and feel better about spending.

Famous Saver: Hetty Green the witch of Wall Street lived from 1834-1916. She inherited several million dollars at age 21, and turned that into a 17.3 billion empire when she died. She was famous for going to the Laundromat when the hem of skirt got dirty and asking to wash only the bottom. She would refuse to have birthday candles lit on her cake – she would wash them off and return to the store for a refund.

Money is with us all day every day, and our attitudes are so deeply imbedded that we do not even know we have them. A good clue is to describe your parents – are you like them? What were or are there spending habits. This was a big one for me. Mine were classic spenders. There was plastic on the couches in the living room, only to be removed when company came over so they remained looking new, Club Med holidays every year, (just the 2 of them), new cars, and lots of entertaining guests.

Our attitudes control how we spend our money. Our passions are what we spend the money on. Husband & wives can have the same attitudes but the wife might want to spend on gardening and the husband on golf. So my job is to help couples to save some money, not double spend on their passions. Our attitudes can stay with us for all our lives. But there are some ideas and myths out there that we want to hang on to because it will either give us hope or give us an excuse to keep on doing nothing.

There Is Magic In Your Attitude.

I am sure you've seen a magician perform various magical tricks on television, in a theatre, or at a community fair. Did you ever wonder or try to figure out how they performed the tricks so that you could create similar acts of magic?

I believe there is a magician within each and every one of us and the magic we are able to perform is far greater than making cards disappear. It will enable us to fulfill our desires, put happy smiles on our faces, and experience the feeling of turning impossible challenges into possible successes.

The real magic within you starts with a choice of believing - believing in your abilities and talents to perform life enhancing initiatives. How? A positive attitude.

When your attitude is positive amazing things happen. You raise the effectiveness of your abilities, enabling you to create and achieve magical results.

by Michael Bortolotto The Rubberband Man

 

 

Lifestyle Harmony

Do you know what the new buzzword is? We hear it at the gym, yoga or giving birth, it is breathe. We often forget to do it and yet it is one of the biggest stress releasers.

Breathing is supposed to be natural. Have you ever watched a baby breathe? They take big full relaxed breaths. As we grow older and encounter stress we gradually forget to breathe properly, not breathing properly is an unconscious way of coping with stress.

Breathing is used for women giving birth as a way to deal with the pain. In yoga participants are reminded to breathe to relax the tight muscles and aid the body in greater flexibility. It is also used in meditation. A number of years ago I had problems going to sleep, suffering from busy brain then I learned about breathing and when I go to bed I take a few deep-relaxing breaths to let go of the day and before I know it I was off to dreamland.

There are a variety of different techniques, I urge you to try a few and see what works for you. However, it may take a while to remember, just like learning a new skill. Below are a few exercises.

•  Just start to become aware of your breathe, notice the depth of it or how it feels.

•  Sit in comfortable position, inhale deep and comfortably, hold 1-3 seconds and then exhale 4-6 seconds, hold 1-3 seconds, inhale 4-6 seconds and then hold again repeating the pattern 5-6 times.

•  Do the above and imagine letting go of all the stress and tension with each exhale and then inhaling and imagine something positive or relaxing. Al lowing the body to completely relax.

by Tammy Phye

we would love to hear from you!

What's your favourite place to take out-of-town visitors to in the mid-island area?

We will publish the results in our next newsletter.

email us at

Momentum Newsletter

Myth Information

Q and A - Ask Shari