We are officially mid-way through 2014. True, this isn’t a newsflash. But did you know this a perfect time to do a financial review?
I know, I know, your mind is set on relaxing and having “hot fun in the summertime!” Who wants to (strategically) think about their money right now?
Yet, this half-way point represents a perfect time to do a review of your money and money-based goals. The slower pace is an invitation to pause, evaluate, reflect and perhaps press “reset.” Something you’re likely doing professionally, anyway.
Even if you’re not steeped in a traditional “corporate” work environment, you might be engaged in a mid-year performance review process of some sort. So, why not do the same when it comes to your finances? Why not take a pulse check and compare where you are vs. where you thought you’d be by now – six months into the year?
This makes July the perfect time to apply the concept and exercise of a mid-year workplace performance review to your finances.
A financial review allows you to identify opportunities you may have overlooked up to this point and/or to identify tweaks that will enable you to course-correct for the six months ahead.
Here’s a three-phase “looking” process, along with questions, that will:
- ensure you stay conscious about what’s going on with your money, and
- also potentially set you up to experience (even more) financial success and finish the year strong.
Looking at Now
- Pull your banking, investment and credit card statements – what are your current balances?
- What habits are you practicing daily, weekly, monthly?
- How do you feel – excited, energized, lethargic, dismayed, or something else?
- What goals did you set at the beginning of the year?
- What habits did you commit to changing or developing?
- How do these measure up to where you are now? Are you on/off track?
- What mistakes (in action or judgment) did you make?
- What did you accomplish?
- How proud do you feel about the progress you’ve made? How disappointed do you feel about where you’ve fallen short?
- As a result of the two phases above, do you need to change any goals or any of the parameters you’ve established for achieving them – in other words, is a “reset” in order?
- What new goals or habits would you add to your plate for the next six months?
- If distractions and unexpected commitments threw you off-course, what do you intend to do to minimize how these may negatively impact you moving forward?
- What would make you feel most satisfied when 12/31 arrives?
Performing a financial review is not only helpful for confirming what has happened and shedding light as to why your results are what they are, but it can also serve as a preview for what’s to come.
This exercise can help you objectively assess and adjust the choices you’re making and provide insight as to the ones you’d benefit from making. Additionally, it can highlight if the systems, processes and framework you have in place are as supportive of your efforts as you think they are and need them to be.
Are you dreading doing this financial review because it’s summer; because you don’t want to face what you’ll discover; or both?
Well, remember this: it’s perfectly fine for you to be in vacation mode…your money, not so much! Your money should be working for you 24/7/365.
Second, if you’re concerned about how long this will take, then break it down - carve out three (3) 30-minute windows – maybe during lunch – to address each phase noted above.
Finally, focus on the power you’ll gain from the insight you’ll discover as a result of having a meaningful conversation “with” your money.
Need another incentive to perform a mid-year financial review? Just like any other relationship, your money won’t grow as much as it could without your purposeful attention, direction, and action.
p.s. you’ve completed your mid-year financial review…need help? Join the Financial Intimacy Lounge and let your membership help you finish the year stronger! Click here to learn more to begin your membership, now.
p.p.s. mark your calendar for the next Financial Intimacy Hour session – “The Digital Revolution of Personal Finance: Do Your Apps Know You Better Than You Know Yourself?” Wednesday, 16 July at 1:15pm. Invite available soon.
“My husband lost $100 million.”
Nope that isn’t a typo. Yes, my jaw dropped, too!
This was told to me by the wife of a couple who will appear on “Untying the Knot” – a new reality series on Bravo featuring Vikki Ziegler-Payne as the host and mediator. Vikki is a divorce attorney, a dear friend of mine, and a guest teacher in the Master the Language of Love + Money program.
It’s been several weeks since the premiere party and yet I am still dumbfounded. $100 million…lost…I can’t relate.
Risk creates wealth
I was relaying the story to a friend and expressed my curiosity about wanting to know “the story.” After all, there must be a story, right?!
Very matter-of-factly, he said: “He lost it the same way he earned it.” (I gave him my Scooby Do Huh? look.)
My friend went on further to say this person’s husband was a risk-taker and explained how anyone who has created wealth of any means – but especially to the tune of $100 million – didn’t do it without taking some risks.
Then, he punctuated his point with this:
“Not everyone can be broke.”
In a flash, the gossipy side of my curiosity was replaced by an immense interest in wanting to understand more about how this woman’s husband thought about risk. Specifically, I wanted to know:
- what decisions did he consider “normal” that others viewed as risky and vice versa;
- did he rely on data, instincts or a combination to make decisions;
- when did he realize things were about to go awry;
- what was he feeling and thinking as things were unraveling; and
- how (and when) did get he break the news to his wife. (From my conversation with her at the premiere party, I got a sense of how she reacted…)
When it comes to risk, a common tendency of our culture is to just focus on the two opposite ends of the spectrum, much like a see-saw, where one end represents being conservative (or risk-averse) and the other being speculative (or risk-friendly).
I bump up against this notion often with coaching clients and workshop attendees, and I frequently need to remind people that the prospect of losing money isn’t the only risk with which you must contend. You also need to consider risk in the form of any opportunity costs – and when it pertains to money that is the cost of being so conservative you don’t keep pace with inflation.
But a) there’s a broad spectrum of risk-takers, and b) there’s a lot of space in the middle. And, in my opinion, where you fall on the continuum is in direct proportion to the degree you feel comfortable wading in the water of uncertainty – whether that is about money, career choices or matters of the heart…
Traits of a risk-taker
Choosing to create your own business typically means you’re a risk-taker.
This kind of risk-taker usually has a higher threshold for uncertainty, and is slightly more comfortable with the prospect of going or being broke – relative to someone who hasn’t chosen the entrepreneurial path.
“If money is your hope for independence, you will never have it. The only real security that a man will have in this world is a reserve of knowledge, experience and ability.” Henry Ford
But, being a risk-taker doesn’t have to mean being reckless and/or impulsive.
Nor does it mean you’re unafraid – it just means you have the fortitude to do it (whatever “it” is) anyway.
Likewise, being a risk-taker in one domain of your life doesn’t mean that you are such in all areas of your life.
In much the same way you may view and approach money monolithically, you may discover you do the same with risk. And just as it is beneficial to peel away the layers of money, the same is true when it comes to risk. So, with this in mind…
- How do you define risk – and not just with regards to money? Is your definition holding you back, or helping to propel you forward?
- What does being a risk-taker mean to you?
- How comfortable are you with uncertainty – with the unknown?
- What role does comfort play in moving you from one end of the spectrum to the other?
- Where in your life do you play it safe (aka “playing not to lose); where in your life are you a risk-taker (aka “playing to win)?
I bet your answers will reflect what is true for our culture at large: you and I have an interesting (and complicated) relationship with risk.
There’s the infinite list of and excitement about what could go right if the risk pays off.
But there’s also the matter of failure, which many attempt to avoid at almost all costs – often forgetting that some of the best lessons come from failures.
Closely related is the fear of embarrassment – shame, guilt, and the preoccupation with what others may think – often prevent us from taking calculated leaps.
For some, the mere thought of going broke (or losing it all) is unfathomable. Actually experiencing it is really unimaginable!
“To dare is to lose one’s footing momentarily. To not dare is to lose oneself.” Soren Kirkegaard.
I certainly know what it feels like to be broke and wonder, “How the hell am I going to pay my rent?” But I’ve never lost it all; I’ve never gone bankrupt; and I’ve never gone hungry or without basic necessities – even during the leanest of times.
Admittedly, I have no idea how much was left over after this couple lost $100 million. But, it’s a dollar amount I can’t imagine losing. So, does that mean I don’t have what it takes to earn $100 million?
Here’s the existential question I’m wrestling with: What, if anything, is the relationship between what you’re willing to lose to what you have or can have?
I’ve been ruminating on this for the past few days – wondering if I would have made different choices if, when things got tight, I would have been able to withstand wading in the waters of uncertainty a bit longer — could I have stood on the edge of brokenness a bit longer…
Granted, none of us can re-write the history of our choices and the consequences thereof. But it’s kinda of enlightening to use takeaways from real-life experiences like this couple’s to learn how to make smart, risky decisions. Especially if they are decisions you won’t regret – regardless of the outcome.
When clients come to me, it is always because they have a question they haven’t been able to answer satisfactorily on their own. The question either begins with, “How do I…?” or “Why do I…?” or “What should I…?”
Their question is usually about an aspect of their money they don’t understand or that they dislike. And, usually there’s more to their question than what meets the eye.
That’s why I thought a recent Charles Schwab ad was awesome. The commercial features a little boy, who with childlike wonder, peppers his father with a series of questions after a visit to their investment broker. The son stops his father in his tracks with this question: “Why not?”
The commercial ends with the father having a quizzical look on his face (because he can’t answer his son) and a voice-over saying, “Are you asking enough questions…?”
I love this commercial for several reasons:
- It challenges the notion of what is considered passive behavior when it comes to money and who is likely to be passive
- It highlights what you don’t know you don’t know
- It reminds us that wisdom can come through unlikely channels (like children)
- It makes a case for how curiosity can unleash your financial power
Money is the trigger
I use my curiosity to help my clients tap into theirs.
It’s how I get them more engaged with their money; it’s how I get them to embrace what they don’t understand or what they dislike.
It’s how I get them to go beyond first base and to see that most money questions are less about the money (in an absolute sense) and more about money in terms of what it will enable them to do.
It’s how I help them to feel more confident and powerful about their financial choices and results.
What is curiosity, really – other than a) an optimism that you’ll get your question answered, coupled with b) just enough skepticism to never stop at the first answer.
Ironically, when you use curiosity as a tool for managing your money, you’re protecting yourself.
Curiosity will ensure you’ll never go too far astray as you navigate financial challenges and opportunities and as you convert ideas and dreams into a plan of action.
Think about the financial choices you’ve made to date. Now imagine if you had applied a tad bit more curiosity to your process. What might be different?
Or, consider a current financial question or challenge you have and imagine how curiosity could help you produce even better results than you currently envision – whether that’s saving or earning more; investing with greater confidence; spending strategically; being on the same financial page as your sweetie. How do you feel?
Hopefully you feel more confident and powerful. Not because you got immediate answers, but because you asked more (and different) questions than you would normally!
On the off-chance you actually feel more tense than powerful, don’t resist it. It just means you need to ask even more questions – like the fictional character in the Charles Schwab commercial.
Questions coupled with a healthy dose of optimism and skepticism can help you unlock your full financial power – and, thus, positively influence your financial choices and results.
So, if I were on the Charles Schwab ad team, I’d make a complementary commercial with the father and son going back to the broker to get answers to the questions the son asked!
p.s. how might being a member of the Financial Intimacy Lounge help you unlock your full financial power? Click here to learn more and to join.
What happens when you find something boring – even when you know it is good for you? You typically avoid it, right?
For many people, managing their money fits this bill. It is akin to watching paint dry – that is how painfully b.o.r.i.n.g. it is for them. Does this describe you, too? Sure, you might enjoy earning money (who doesn’t?), but when it comes to all the other aspects of it…well, that’s another story.
However, has it ever occurred to you that the reason you find money boring has little to do with money?
Money isn’t boring; you just need to be more curious!
Curiosity as a tool
Heidi Johnson, of FridayPrize.com, advocates following your curiosity over following your passion to discover “work worth doing.” During a recent conversation with her, not only did I think she was onto something with her message, I realized that the practice of curiosity is probably one of the most under-utilized skills for making and having more money.
Think about it: how much of your success, personally and professionally, is because you had the mindset of curiosity. You wanted to go beneath the surface and discover more; you were open to new experiences and decisions?
With this in mind, here’s me taking a stab at illustrating how dialing-up your curiosity can actually get you excited about all aspects of money in ways you may not have imagined before. Why does this matter? Because excited and open is a useful combo that will make sure you:
- are less haphazard in your approach to money
- position yourself to make better choices
- ask for help when you need it
- miss fewer opportunities to grow your money
- amplify your efforts to experience life more on your own terms
When you practice more curiosity, you…
1) Listen more. When you’re a great listener, you pay attention both to what is said as well as what isn’t said. You hone in on clues of all types.
When it comes to money, “listening” takes the form of paying attention to the feedback money is giving you about the quality of the choices you’re making.
2) Are comfortable admitting you don’t know it all; in fact, you see asking questions and asking for help as signs of strength. The process of and then getting answers is what fuels you!
When it comes to money, this means reading articles, blogs and books; taking classes and courses; speaking with family, friends and colleagues; and working with professionals to get help closing your knowledge gaps, or to get guidance you didn’t know you needed.
3) Think like a scientist. Curiosity is at the core of what a scientist does, right? Inquiry, research, find some answers, dig a bit deeper. Repeat. This is the spirit of experimentation.
When it comes to money thinking like a scientist means creating a process to develop the results you desire and honoring this process just as much as you do the results.
4) Have a plan; you have a strategy; but you are fluid about your tactics.
When it comes to money, this means not freaking out when the market drops or when you make a choice that turns out to be a mistake. Why? Because you a) prepared for the unexpected, b) know growth and success are not linear, and c) you have a plan and a strategy – aka a map – for rebounding with as much ease as possible.
5) Peel away the layers until you see the real problem; not just what’s obvious.
When it comes to money, especially when you’re struggling with debt, this means figuring out if what you really have is an earnings problem.
The problem with thinking money is boring is that you unwittingly succumb to one of the biggest financial handicaps you can have. It is a sentiment that locks you in and can cause you to forget that life is about stages and with each stage comes new challenges and new issues.
In my opinion, one of the biggest appeals to using the mindset of curiosity as a tool to manage your money is that it invites you to live more by-design (rather than by-default).
To me, curiosity is inherent. But it can also be developed with intention. And, I have come to the conclusion that it is a skill your money needs you to have!
Curiosity…use it more and let me know if your financial results improve as I suspect they will.
On this beautiful Saturday afternoon, you and your friends may not be lounging about, sipping a cool, refreshing beverage and talking about “identities” and “emotional intelligence” and “financial intimacy.” But the truth is every financial and career choice you make is a reflection of how you see yourself and your degree of self-awareness.
So is how you define and experience the American Dream.
If you were with us on Wednesday for the in-person presentation of this month’s Financial Intimacy Hour, you know we had a phenomenal time. If you weren’t and you’re curious about what you missed, click here to grab the replay.
Leading up to the “American Dream? Rethinking Race, Gender and Financial Success,” I wrote several posts talking about trends impacting our economic and employment landscapes. Trends that will certainly affect you and your livelihood if they haven’t already.
- I shared stats like 4.4 years; 42 million people; $12 trillion; and the “browning” of America. Combined, these data points tell an intriguing story about where we are in our cultural, economic, and employment history.
- I talked about why bridging emotional intelligence and financial intimacy is a must-have if you want to effectively and proactively manage your career and your finances.
What I didn’t reveal here as clearly as I did that night was why I felt this conversation was an important one to have – right now.
As you probably know, I am an observer. Noticing patterns that others miss or discount is one of my strengths.
And a pattern that caught my attention can be summed up with these five words, “When things get back to…”
It feels like I’m hearing this sentiment more and more, especially from some clients and prospects who lost a job, significant money, or both as a result of the 2008 crash and the Great Recession that followed. And…they still haven’t recovered (or not as completely as they’d hoped.)
Their longing to get back to the way things were is deep. Understandably, yet still unfortunate, the desire to get back to the comfort and safety they once felt is so strong, they are missing the signals that indicate a new reality has formed, a new normal is afoot.
They are stuck in a time warp and not adjusting too well – emotionally, psychically or financially.
As someone shared with me, the aftermath of 2008 felt like a game of “musical chairs and when the music stopped I didn’t have a place to sit.”
What a perfect metaphor for what so many (perhaps even you?) are experiencing. If you ever played musical chairs, you know it sucks when the music stops, the seats are all gone and there’s no room for you in the circle. And this is precisely why I wanted to talk about the American Dream in the context of race, gender and financial success.
I wanted to explore how the above-mentioned trends reflect your identity through the prism of your personal finances and the American Dream. Especially if you feel slightly uprooted.
How do you see yourself; how do you want others to see you; and how does the reality of where you are today relative to where you’d thought you’d be compare? If the mirror is reflecting back anything other than what excites you and has you wishing things were as they used to be, click here to grab the replay of “American Dream? Rethinking Race, Gender and Financial Success.”
My conversation with Dr. Atira Charles will not only increase your emotional and financial self-awareness, but you’ll also have specifics steps to help you shift from longing for how things were to being excited about what is and can be. And because the principles we share are universal, you’ll get something from this even if what has you feeling a bit nostalgic has absolutely nothing to do with money or your career.
Enjoy…and then let me know of a major takeaway!
This current work + money series culminates with an in-person event next week. I’m so excited for, “American Dream? Rethinking Race, Gender, and Financial Success,” on Wednesday, May 28th because the evening is all about you and your dreams – the ones you’ve fulfilled as well as those you’ve abandoned by choice or circumstance.
If what you’re doing today is totally unlike what you dreamed of doing as a child and you feel something is missing, you should join us.
If you’re one of the many that was RIFd (the new term for being downsized) and your period of unemployment has led you to the conclusion that working for yourself is a better, more secure option, you should join us.
If you’re working but have found yourself in the new-classic situation of being over-qualified but under-employed, you should join us.
If you’re just plan curious about what more you can do to live the American Dream in your signature way, you should join us.
If you’re looking to refresh your tool-kit and add to it ideas, tools, and strategies that will help you more effectively manage your career and your money, you should join us.
With my guest, Dr. Atira Charles, we’re talking about you, your work and your wealth, and sharing tools and strategies to help you redefine and recalibrate your reality to match your American Dream.
Dreams begin with…
What do you remember about what you wanted to be when you were a child?
Are you doing that work today?
When I was about four or five years old, I remember wanting to be a nurse.
By eight or nine, that shifted: I wanted to be an oceanographer and work with Jacques-Yves Cousteau.
In high school, I decided I wanted to be a shoe designer. The inspiration: my part-time job at the mall.
In terms of “work type,” I obviously am not doing any of these things today. But I am living out the essence of each of these professions by:
- helping people have a healthy relationship with their money;
- connecting with people by way of my fascination with human behavior, zeal for life, and natural state of wonder and curiosity; and
- using the principles of design as a discipline (or tool) to help people find viable solutions to fulfill their desires and solve their problems and challenges.
Do you see what you wanted to see?
In large measure, the American Dream is about who you are and what you do? It’s about how you see yourself; it is about your identity. This matters to you as the dreamer and affects those whom you love and who love you.
So, when someone asks – “What do you do? or “What have you been up to lately?” or “How’s business?” – it can trigger a range of emotions about where you are relative to your expecatations. Because deeply embedded in how you feel about your reply is how you see yourself and how you want others to see you.
Therefore, these questions can take you on an existential journey and prompt you to wonder: “What am I doing with my life?” or “What does it all mean?” Especially at this time in our cultural, economic, and employment history when so much about how you and I live and work has shifted. Today’s framework is much different than our parents!
As I said last week, personal finance is a career issue. Given stats like 4.4 years, 42 million, and 83%, it’s hard to imagine that you haven’t had to redefine your identity and/or reconcile the reality of your life with the “dream” you thought it would (or could) be.
With my guest, Dr. Atira Charles, our goal is to help you answer these questions so you can live the American Dream on your terms. Think of the evening as an opportunity to learn more about yourself, and turn that insight into an enhanced sense of personal power and fulfillment. After all, self-awareness is a critical key to maximum effectiveness.
I hope to see you next week if you are in the New York City area. The session will be held at my alma mater, Fordham University’s Graduate School of Business (at Lincoln Center), on Wednesday, May 28th at 6pm. The event is free, but you must register to attend. Click here to register.
Don’t live in the NY tri-state area…then, I’d appreciate you sharing this post with a friend, colleague, or family member who does.
And if you read this far but didn’t watch the above video, what are you waiting for? Check it out to get a glimpse of what you’ll experience during this in-person event to explore how emotional intelligence + financial intimacy affect your life and lifestyle.
Special note: Today is the final day to join the Financial Intimacy Lounge Membership at the Charter Member rate of $47 a month. To lock in this special rate, click here. Tomorrow the rate increases to $97 a month.
Each day you are making or producing something that someone else is consuming, experiencing or interacting with.
This is why, when I had the good fortune to hear Russell Simmons speak at an event sponsored by Credit Suisse, the following statement really resonated with me:
“You can’t make a good record worrying about the money you’re going to make. It’s all about the melody.” Russell Simmons
You don’t have to be an artist to be creative. And, you don’t have to be a musician to embrace his statement. It’s application extends far beyond the music industry and it is perfect for this installment in my work + money series.
What Comes First
Last week I shared two stats that shed light on two trends affecting today’s economic and employment landscapes: 4.4 years and 42 million. (If you missed it, click here.)
Here’s today’s staggering number: 83%.
According to the Society of Human Resource Management, 83% of HR managers said personal finance problems had an impact on employee performance. Not surprisingly, money pressures:
- distract employees
- keep people feeling trapped and without options
- create a great deal of stress
- tend to narrow your scope of vision and seduce you into focusing on what’s not present vs. what could be.
Couple this with the growing practice of companies rescinding offers because of negative feedback from credit checks and reports and the obvious just becomes even more so: personal finance is a career issue.
If you’re worried about money, it’s hard to be creative.
If you’re worried about money, it’s hard to perform at your peak.
If you run a business and are worried about money, it’s hard to keep clients and attract your ideal prospects.
The reality of personal finances being a career issue doesn’t just pop up when times are financially challenging. It’s just as relevant when you are experiencing financial success, too.
So whether the goal is to deal with a financial problem or to make more money, the way out of financial problems or to get to the next level isn’t to focus on the money!
This is why I thought Russell’s statement was such a gem. His words…
- perfectly describe the relationship between work + money.
- silently instruct you on what to do if you’re having financial problems.
- invite you to focus on doing great work and letting go of being attached to how the effort connected to any one endeavor will payoff.
Your Money, Your Career…and the American Dream?
With about fourteen words, Russell taps into the key elements of the American Dream: work, money and freedom. We get a glimpse of the magic that happens when you operate with the mindset of money being a by-product of – not simply the end goal.
And while how you desire to experience the American Dream may differ from Russell’s, it’s pretty safe to assume he’s living his!
But, are you living yours?
Are you proactively managing your career choices, which undoubtedly affects your personal finances?
Are you effectively managing your personal finances so that you have the time, creative and financial freedom to work how you want, when you want, where you want and why you want?
When it comes to the American Dream, it wouldn’t behoove you to parse out the elements of work, money, and freedom. Therefore, you can’t ignore the need to increase your emotional intelligence (read: manage your career well); you also can’t ignore the invitation to deepen your financial intimacy (read: manage your money more effectively).
It also wouldn’t serve you to overlook other factors that affect how you experience the American Dream: race and gender.
As such, I invite you to join me on Wednesday, 28 May for a fascinating conversation exploring the many layers of the American Dream.
“American Dream? Rethinking Race, Gender, and Financial Success” is the focus of this month’s Financial Intimacy Hour, which is being hosted by my alma mater Fordham University’s Graduate School of Business.
During this in-person event, I’m interviewing Dr. Atira Charles and we’re going to make certain you have the emotional intelligence and financial intimacy skills to effectively manage your career…and your money. Especially if – in this ever-evolving economic and employment environment – you’re wondering about the future of your American Dream.
The event is free! So, if you live in the New York City area, click here to learn more and to register.
p.s. May 15 at 11:59pm EDT is the deadline to become a Charter Member of the Financial Intimacy Lounge (which means a 50% discount off the monthly fee). Join us today to become a part of a dynamic community of individuals who get that personal finance is a career issue and want to avail themselves of resources to help them manage their money (and career) choices, well!
You and I tend to bifurcate many aspects of our lives. Probably because it helps us wrap our hands around the complex issues we often face; probably because it helps to make our choices seem a bit simpler. This “separation” is really evident when it comes to your money and your career decisions.
Yesterday, I presented a webinar for the National Urban League aptly titled – “Your Money, Your Career: Leverage Your Personal Power for a Healthy Relationship with Money.” Of course, I shared with the participants my signature exercise, The Financial Wheel. I also shared what I describe as “8 No-Matter What Habits.” This combination was by-design; it gave participants the tools necessary for being both the CFO (of their finances) and CEO (of their careers).
I’ve used this space before to talk about the importance of donning your CFO hat. Over the next few weeks, the conversation I want us to delve into is why you also need to don your entrepreneurial hat.
It is time to become the CEO of your career (like, really!) – even if it is your intent to work as an employee your entire career.
The numbers – 4.4 years and 42 million – are the reasons why.
Catching up with the shift
According to the most recent data available from the Bureau of Labor Statistics, the average worker today stays at his/her job for 4.4 years.
In the investment world, when you’re evaluating a company stock or mutual fund manager or general economic activity, 5-years is a commonly used metric. It provides a gauge for how a stock or mutual fund performed during the ups/downs of a business/economic cycle.
So, 4.4 years is really significant! It is signaling that…
…the average worker is not even staying with their employer a full business cycle!
Making this an important number that should matter to you, as it’ll likely affect you directly – if it hasn’t already.
(Let’s do an informal, totally unscientific poll: How long have you been with your employer? How about the one before now? Leave a comment below to let me know.)
Here’s another important number for you: 1/3
One in three Americans (roughly 42 million) are estimated to be freelancers. By 2020, freelancers are expected to make up 50% of the full-time work-force. This statistic is courtesy of WorkMarket.
I shared these stats yesterday and will again next month when I present a similarly themed webinar for Prudential’s Women in Pension group. And, I’m sharing them with you today because these numbers serve as a wake-up call if ever there was one!
On their own, these stats are staggering. Together, they prove this isn’t a fad! They really speak to a shift that has been afoot for awhile, but that I don’t believe, when I reflect on conversations I have with my clients, colleagues, and friends, people have caught up to.
Sometimes, it seems as if instead of these numbers being indicative of a trend toward our future-state, folks are viewing them as, “this is what it’ll be like until we return to pre-2008 times.“
Sorry folks…that ain’t happening.
What these numbers – 4.4 years and 42 million – mean and why they should matter to you is that it is critical that you be more proactive, strategic, and intentional regarding your money and your career decisions. For you, managing this dynamic intersection requires more deft today than perhaps at any other time in our employment and economic history.
And, it means you probably need to become more comfortable donning an entrepreneurs hat – even if you work as an employee , whether that’s in academia or for a non-profit organization or for-profit corporation.
But lest you think you’re the only one needing to shape-shift, think again: employers need to adapt as well. The rules and expectations of employer/employee engagement have changed. And they, too, are learning how to navigate the future – now.
p.s. there’s still time to become a Charter Member of the Financial Intimacy Lounge (which means a 50% discount off the monthly fee). Join us today to become a part of a dynamic community of individuals refining their money skills and increasing their financial and life success.
I’m gearing up for tonight’s Financial Intimacy Hour with my guest Lori Anne Douglass, Esq. We’re tackling that topic I talked about last week – the one most would prefer to avoid.
I addressed how estate planning isn’t just for the rich or just about death, and how it is really an act of love. If you missed that post, click here.
As timing would have it, on the day I published that piece I had dinner with a friend I hadn’t seen in awhile. In the process of catching up, I, naturally, invited her to join us tonight. And, she – a single mother, homeowner, and business owner – shared she didn’t have a Will.
My reaction: GASP!
Her response: “Why do I need a Will; won’t everything automatically go to my son?”
She’s not alone in this sentiment. According to a new Rocket Lawyer-Harris survey, 64% of Americans don’t have a Will.
But, ironically, not having one isn’t really the biggest mistake my friend is making (and many others like her): ONLY having a Will is!
At a minimum, there are three other documents that you need in addition to your Will. This is an oft overlooked misstep.
And so is having an outdated plan.
Depending upon what source you reference, the number of people without an estate plan ranges from 50%-70%. But perhaps you fall in the 30%-50% range of people who actually DO have one. If true…
…is the plan you have the one you want to have?
Both Paul Walker and Philip Seymour Hoffman had estate plans created – in 2001 and 2004, respectively. However, their tragic and untimely deaths put this common estate planning blunder of not having a current plan front-and-center for a number of “costly mistakes” articles.
Above, I’ve just shared two obvious and not so obvious estate planning mistakes. During my conversation with Lori Anne tonight, we’ll flush out a few more. Of course, along with what to do instead and why these actions are important.
Admittedly, I have no clue what in the world “conscious uncoupling” means, but I do understand the need for having a conscious approach to estate planning.
- It’s how you organize your personal + financial affairs.
- It’s how you address the mistakes you know you’re making AND become of aware of the mistakes you don’t realize you are.
- It’s how we each contribute to the dismantling of the misconception that the estate planning process is only for a certain few or relevant to a narrow set of circumstances.
- It’s how you ensure you don’t fall prey to the “someday, one-day” mentality that can grip you and lull you into procrastination mode until it’s too late to be thoughtful, intentional, and strategic.
- It’s how you get to know yourself even more intimately. Estate planning invites you to ask yourself some probing questions and take stock about what and who is most important to you. (See, I told you it was about love – and that includes self-love!)
- It’s how you put on your big girl or big boy pants and take the reins to control how you experience life and money – and not just sit on the sidelines “taking” whatever comes your way. I realize you may not take a passive approach in other areas of your life, but for some, money makes them a little gun-shy. If this is you, let’s stop this pattern now, shall we?
Thinking of estate planning as an act of love isn’t a matter of semantics for me. Nor is looking at it as a testament of self-love. I truly believe this and want others to hop on the bandwagon with me. And that includes YOU!
I am SO excited for tonight, and if you haven’t registered I hope you’ll accept my invitation to join Lori Anne Douglass, Esq. and me at 8pm EDT for this month’s Financial Intimacy Hour.
I promise it’ll be a lively experience. And, I promise you’ll know more at the end of 60-minutes than you did at the beginning.
Estate Planning: It’s Not Just for the Rich; It’s Not Just About Death; It’s About Love & It’s for You!
Whew…you read pass the looong headline line!
Estate planning. It’s often considered boring, scary, the “thing” to avoid, or just perceived to “not be for me.”
So, that you’ve read this far is a win. And, I’m glad.
Because it’s time for us to have “that” delicate conversation, and in the process bust some estate planning myths and make certain you have some important facts.
Diss the myths
Estate planning isn’t just for the rich. If you have $2 dollars to rub together, you need an estate plan.
Estate planning isn’t just about death. Although that can clearly be what triggers the fulfillment of your wishes. But so can a prolonged illness that leaves you less-able or disabled.
Estate planning is hard.Yes, it isn’t emotionally easy. It is uncomfortable, asks you to wrestle with all sorts of fears, and “forces” you to confront mortality, less-ability, and disability – including your own – in ways that often surprise you.
But what I’ve come to understand and personally embrace is that estate planning is really an act of love.
It’s how you have the last word – your way. It’s how you express your love to those near and dear. It’s how you control what happens to the possessions that are important to you and how you share the money you leave behind – even if it is just $2! It’s also how you control the quality of your care if you experience a prolonged illness. Viewed in this light and estate planning becomes a no-brainer.
Know the facts
However, let’s face it: estate planning can also be downright confusing!
Heck, I work in financial services and learned things I didn’t know I didn’t know as my mother and I put together our family’s estate plan.
This is one of the many reasons, I’m excited about the focus of April’s Financial Intimacy Hour. Register here.
My guest is Lori Anne Douglass, Esq. – partner at Moses & Singer and head of the firm’s Trust and Estates group and Matrimonial and Family Practice. I couldn’t think of a better person to help us push through the emotional blocks of estate planning and help you and me get our heads out of the proverbial sand, take action and be powerful in a realm that can often render us feeble if caught off-guard or ill-prepared.
Yes, we’ll cover the basics and make sure you’re prepared with definitions of key terms.
But lest you think this is going to be a “traditional” estate planning conversation – think again.
First, there’s Lori Anne’s personality. “Boring” is just not a word you’d associate with her. That’s just not how she rolls. You’ll see But here’s a clue: she’s working on a book, “How to Raise a Child You Love With a Person You Hate.”
Second, we’re going to tackle this 21st century style. Meaning: deal with modern-family dynamics of estate planning courtesy of modern-day realities. Like:
- 40.8 percent of children are now born to a single parent;
- Over 50 percent of U.S. households are now headed by a single individual;
- Non-traditional partnerships are increasing in number;
- Marriages involving a non-U.S. citizen are increasing;
- 16.1 percent of U.S. households are now multi-generational, almost as high as in 1940;
- 78 percent of middle-aged adults believe that they’ll be responsible for caring for an aging family member.
The above stats are an abbreviated list of factors courtesy of research from the Pew Research Center.
Add to this the Supreme Court’s ruling to strike down the Defense of Marriage Act and the fact that estate planning is critical for and affects women more profoundly then men, you see we have the makings for a full-bodied, colorful, and creative conversation about life.
And, more specifically, how to use a tool that can ensure you have the last word (literally and figuratively) – your way.
Join Lori Anne Douglass and me next Wednesday, 30 April at 8pm EDT for this month’s Financial Intimacy Hour.
Let us help you push through the unease if that’s your issue, or lack of awareness if that’s your challenge, and help you address the financial + legal matters that constitute estate planning.
We want to make sure you have what you need to do estate planning right, have peace of mind, and show your love.