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Ten Guaranteed Steps to living a life you love while Profiting From The Current Economic Conditions!

As we approach the end of yet another year, simple reflection makes a big difference in the quality of life.

 ONE

Take care of yourself - physically, mentally, & emotionally by taking care of those around you.  Surround yourself with positive energy and conversation.

TWO

Use the financial skills you’ve learned to budget, manage cash flow so you spend less than you earn, then save for reserves and your future.

THREE

Do not take yourself or your circumstances to seriously.  Live your life with the Mantra “This too shall pass” - Life happens in unavoidable cycles, expect it.

FOUR

Review all insurance and investments against your plan for their performance and make calculated sensible choices, not emotional, panic or fear driven reactions.

FIVE

Debt management - Acquire appreciating assets that generate income in excess of their cost - credit card balances paid in 30 days or don’t use them - Look for discounts to preserve cash then put that savings away.

SIX

Stay close to family & friends - every day make 5 people feel better after being with you than before - take the time to listen, then teach other how to feel as good as you do.

SEVEN

Be healthy - calories in, calories out.  Pay attention to your body when eating, not the emotional urge to eat.  Exercise to control fatigue, stress, and metabolism - Walk, talk, and breathe to reduce stress & eliminate illness - If you get flu shots, time to get them.

EIGHT

Keep a positive aspects or appreciation log, write in it several times daily.  You will discover you have a lot to be grateful for.

NINE

Without Integrity, nothing works.  Maintain a context for living your life that excites & empowers you and then every moment concentrate on living inside that framework.  Be whole and complete with yourself and others.  Do what you say by when you say you will - It makes all the difference.

TEN

Celebrate accomplishments both yours and others, large or small.  Teach and remind others to do the same.  Remember, an accomplishment is something you declare.  There are no rules, other than self imposed, for what an accomplishment is.

I like this story, it makes us all think about what’s right and proper.

Jason called me on Tuesday this week asking for some advice on whether he should lend a friend of his some money.  The friend (who we’ll call Sam) it seems has several properties that are worth less than the mortgage amounts he owes.  Several are rented, and Sam’s income from them is less than his payments.  Yes he did buy them in the past few years when everybody was doing the same and yes he figured values would continue to climb as they were at the time he purchased them.  They didn’t, unwise investment assumption for Silicon Valley real estate or for that matter property anywhere.

In his search for cash flow relief and to stop the burn rate of his dwindling savings, Sam hears about ‘Loan Modifications’.  He investigates and finds an attorney backed modification company, one of many appearing on the landscape of public opportunities for the financially stretched, and is told he may be able to reduce the financing on all of his properties to 80% of CURRENT value.  WOW!  Sam does some quick numbers in his head and figures that would make his property positive cash flow and reduce his debt by nearly 50%.  Sam has a good high paying job in a profession that will not experience lay-offs any time soon, and has excellent credit.  By the way, the money Jason was asked to lend Sam was the $14,000. the modification company requested to “see what could be done”, no promises but if it didn’t all turn out Sam would get a refund.

 In his book Capitalism and Freedom, Milton Friedman asserts that the great achievement of capitalism has not been the accumulation of property or wealth but rather the opportunity men and women have to develop and improve themselves.  He further states that great advances have never come from centralized government edicts or direction but come from individual genius or even minority beliefs within a social climate that promotes variety and diversity for all.

Let’s define integrity as being whole and complete inside, or with a background of, a context or way of being in life that produces workability for all involved.

And we’ll consider ethics a philosophy encompassing right conduct and good living behaviors where at best all benefit, and at least nobody is harmed.

INTEGRITY AND/OR ETHICS appropriate, you make the call!

If the lenders agree to reduce Sam’s mortgages and possibly even his interest rates, they take a big hit financially.  Would you do it if you were Sam?  Is this a break in integrity or ethics?

What if the lender passes the losses on to our central government as part of our recent bail out plan.  Would you do it if you were Sam?  Is this a break in integrity or ethics?

Would you lend the money to Sam if you were Jason?  Is this a break in integrity or ethics?

MY BUSINESS:

Being committed to transforming peoples experience of personal finances I confront more & more issues like these every day.  They are difficult to advise but my yardstick is always does anybody get hurt or loose as a result of my advice and more important, will my client win?

Please give me your thoughts & let’s discuss it.

Dan