Remember how Columbo used to leave a room, stop at the door, turn around, and say, "Oh, yeah, one more thing....."? Well, I have one more thing related to yesterday’s blog! By the way, this was prompted by an article I read over the weekend, published by a pro-brokerage house magazine. I was planning on covering this later, but I got inspired!!
The other thing I want you to talk with you about is broker/advisor compensation.
Now, although I run a fee-only practice, I am not wholesale against the concept of charging a commission. If you have a small amount of money that I put in a diversified mutual fund, we reinvest the dividends, and you dollar cost average into it, I may not trade in your account much. Taking a one-time 5% commission and then letting you hold your money in that fund for four or five years works well for you. You might even save money over my annual fee.
(I actually get around this problem by helping very small future clients open an account at an online firm like TD Ameritrade, Schwab, Fidelity, etc. Then, they can hold that money there and come back to me when it's a larger account. This way, they don't pay the commission or the fee.)
Part of the financial reform involves lowering the annual fees (called 12(b) 1 fees) that brokers receive in the years after they sold you the product. They get the commission in year one, then each year after that as long as you own the product, they get 12(b)1 fees. Not a problem, but the issue is sometimes brokers don't disclose the 12(b)1 fees, or for that matter the amount of commission received.
The issue isn't how you get paid; it's in the transparency of the advisor’s model and how much he or she gets paid.
For example, a common practice is for an advisor to claim he or she is fee based. Now, this doesn’t mean that they don’t take commissions; it means they can take commissions or fees, on different parts of your portfolio. If you want to work with someone who takes no commissions, you need to work with a fee-only advisor.
What do you do? First, ask your advisor how they are compensated: fees, commissions, or both. Then, ask them how much compensation they will receive from any source for the transaction they are proposing. Be careful that they disclose all money received, as annuity companies pay the advisor directly. That’s why you have a surrender period. The surrender period ensures the annuity company gets their money back. Ask how much of an annual fee the investments carry. If the numbers seem high, ask if there are cheaper, equally effective investments. Don’t hesitate to take time to think about it. If you work with a fee-only advisor, you should regularly get an itemized invoice explaining how much fee was charged. Check this amount against your statement to make sure the fees were taken accurately.
This isn’t a “fee versus commission” fight. In my mind, that’s the wrong fight. The right fight is for transparency. The second right fight is to require fiduciary conduct on the part of anyone who manages your money, all of the time. If someone is a transparent fiduciary, how they are compensated ceases to matter.
Be Prosperous!
Peggy
Peggy Doviak
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Tuesday, February 2, 2010
Thursday, January 28, 2010
Tools and Taxes
Greetings from the Arctic! As I sit working, ice is accumulating on all the trees, the grass, the now, finally, the roads. How happy am I that technology lets me work wherever I am?
No, I'm not talking about hammers and screwdrivers today! I'm talking about the tax impact of different kinds of accounts you can use to save for retirement.
Basically, the tax treatment of your investment accounts take one of three forms, and they each have advantages and disadvantages.
1. You put the money in the account in pre-tax dollars. This means that you don't pay any tax on the money until you withdraw it during retirement. The idea is that you have more money to grow for all those years, and that helps your compound rate of return. (We talked about that a couple of days ago.) Then, once you are in retirement, you are supposed to be in a lower tax bracket, so when you take the withdrawal, you pay fewer taxes than if you had paid taxes back when you were working. This is the most common way to save for retirement. The only thing to ask yourself is whether or not you believe you are in a higher tax bracket today than where you will be in retirement. And this assumes that you do, in fact, retire. I'm beginning to think that for some people, retirement is actually no longer a major goal. Of course, health issues can interfere, but I really believe this demographic is changing quickly.
2. You put the money in a Roth IRA in after-tax dollars. If you wait until you are 59 1/2 and the account has been open for five years, when you take the distributions, you pay no tax. Withdrawals are totally tax free. I love Roth IRAs and will be devoting an entire blog to them in the near future.
3. You put the money in a normal, taxable account in after-tax dollars. Then, rather than paying income tax, you pay capital gains on the realized gains of each investment. A realized gain is a position you actually sold for a profit, not a position that you still hold. Also, if the investment pays any dividends, these are also taxable. Capital gains tax takes two forms: short term and long term. Short term capital gains are for those investments you have held less than a year. The short term capital gain rate is your ordinary income tax bracket. Long term capital gains are for those investments you have held longer than a year. Capital gains tax rates have been very low and are expected to increase, probably in 2011, but only to 20% on most investment portfolios. The advantage to this kind of account is the access to the funds and the lower tax bracket than ordinary income taxes.
What to do? I can't tell you. But I would suggest looking at your financial situation and deciding whether or not you would be wise to diversify the tax treatment of your invested money.
Be prosperous!
Peggy
No, I'm not talking about hammers and screwdrivers today! I'm talking about the tax impact of different kinds of accounts you can use to save for retirement.
Basically, the tax treatment of your investment accounts take one of three forms, and they each have advantages and disadvantages.
1. You put the money in the account in pre-tax dollars. This means that you don't pay any tax on the money until you withdraw it during retirement. The idea is that you have more money to grow for all those years, and that helps your compound rate of return. (We talked about that a couple of days ago.) Then, once you are in retirement, you are supposed to be in a lower tax bracket, so when you take the withdrawal, you pay fewer taxes than if you had paid taxes back when you were working. This is the most common way to save for retirement. The only thing to ask yourself is whether or not you believe you are in a higher tax bracket today than where you will be in retirement. And this assumes that you do, in fact, retire. I'm beginning to think that for some people, retirement is actually no longer a major goal. Of course, health issues can interfere, but I really believe this demographic is changing quickly.
2. You put the money in a Roth IRA in after-tax dollars. If you wait until you are 59 1/2 and the account has been open for five years, when you take the distributions, you pay no tax. Withdrawals are totally tax free. I love Roth IRAs and will be devoting an entire blog to them in the near future.
3. You put the money in a normal, taxable account in after-tax dollars. Then, rather than paying income tax, you pay capital gains on the realized gains of each investment. A realized gain is a position you actually sold for a profit, not a position that you still hold. Also, if the investment pays any dividends, these are also taxable. Capital gains tax takes two forms: short term and long term. Short term capital gains are for those investments you have held less than a year. The short term capital gain rate is your ordinary income tax bracket. Long term capital gains are for those investments you have held longer than a year. Capital gains tax rates have been very low and are expected to increase, probably in 2011, but only to 20% on most investment portfolios. The advantage to this kind of account is the access to the funds and the lower tax bracket than ordinary income taxes.
What to do? I can't tell you. But I would suggest looking at your financial situation and deciding whether or not you would be wise to diversify the tax treatment of your invested money.
Be prosperous!
Peggy
Monday, January 25, 2010
Retirement Spending
There is a common rule of thumb that suggests you will need about 80% of your current expenses during retirement. Although a convenient assumption, if you think about it for a minute, it likely isn't true. Some people dream of a retirement with cruise ships, warm water, and fruity drinks. Others, look forward to spending a week or two at the lake. Some want vacation property; others just dream of Sunday dinners surrounded by children and grandkids.
Your vision for your retirement will determine how much money you will need.
Now, there are some trends about retirement income. Low income individuals need nearly as much in retirement as they make while working because their monthly expenses consist of paying all the necessary bills with little money left. If someone rents, not owns, and has little "spending" money, they will have virtually no difference between working and retirement.
Middle class families often see a decline in expenses, as houses are paid off, working expenses minimize, and retirement plans are modest.
However, upper-middle to upper class families may actually see an increase in retirement expenses, as the desire for living the good life leads to second mortgages and expenses.
Just be careful not to accept immediately a vision of your retirement provided by someone who doesn't know you!
Be prosperous!
Peggy
Your vision for your retirement will determine how much money you will need.
Now, there are some trends about retirement income. Low income individuals need nearly as much in retirement as they make while working because their monthly expenses consist of paying all the necessary bills with little money left. If someone rents, not owns, and has little "spending" money, they will have virtually no difference between working and retirement.
Middle class families often see a decline in expenses, as houses are paid off, working expenses minimize, and retirement plans are modest.
However, upper-middle to upper class families may actually see an increase in retirement expenses, as the desire for living the good life leads to second mortgages and expenses.
Just be careful not to accept immediately a vision of your retirement provided by someone who doesn't know you!
Be prosperous!
Peggy
Wednesday, January 20, 2010
How Are You Doing?
For Christmas, Santa brought my husband and me a Wii, with "Fit Plus." Now, every morning, I turn it on and a virtual balance board asks me how I'm doing and whether or not I've eaten breakfast. It congratulates me if I've lost weight and encourages me if I haven't. Today is my Wii update to you.
How are you doing writing down all of your expenses? Really good? Great--keep it up! Not so good? That's okay. You could actually start today and still be on track for nearly all the year. Don't give up! You can do it!
The hardest part of any lifestyle change is beginning. Your goal to gain control of your finances in 2010 is super! Don't let a little slump stop you.
(Now, don't you feel better?)
Be prosperous!
Peggy
How are you doing writing down all of your expenses? Really good? Great--keep it up! Not so good? That's okay. You could actually start today and still be on track for nearly all the year. Don't give up! You can do it!
The hardest part of any lifestyle change is beginning. Your goal to gain control of your finances in 2010 is super! Don't let a little slump stop you.
(Now, don't you feel better?)
Be prosperous!
Peggy
Thursday, January 14, 2010
Frisbees, Airline Miles, and Debt
When I was in college, walking between classes, there were always tables set up with young people in brightly colored t-shirts tossing around Frisbees or offering free pizza. The only requirement for obtaining the shirt, disc, or dinner was to sign up for the credit card they were offering. They promised low interest rates and the lure of using more money than you had. Many students were lured by this (which is why you have exactly the same memory as I, even if you live in another state).
The number one reason that students have to drop out of college isn't bad grades; it's that they cannot afford to stay any longer. They have applied for too many cards, spent more than they can afford, maxed out student loans, tapped loved ones dry, the minimum wage job they have isn't enough.
As we age, the promotions don't go away; they just change. Now, I get credit card applications with the promise of enough free miles to take a trip if only I will apply.
I have credit cards. My favorite offers free miles, but my husband and I pay it off every month. If you want to rent a car, you have to own a credit card. Using credit responsibly is not a bad decision, but the trick is understanding the difference between good credit decisions and poor decisions.
Taking a loan to purchase a home is very common. If the home is within your budget, you pay a sizable down payment, and every month, you pay off both principle and interest, you are likely okay. (I've seen situations where the person wasn't okay, but usually one of the criteria wasn't really met.) Taking out a student loan to pay for a college education is an investment in yourself and your future. However, buying a bigger house to impress others or using student loans for Friday night parties with friends is a poor use of credit.
Often, if you break down your credit card purchases, you will find they are spent on the discretionary items in your budget. Borrowing money for discretionary spending creates nightmarish situations. If you can't afford to pay for it this month, just wait a month. Don't put it on a card with the idea of paying it off over time. Save the credit for those items that really matter, where you can obtain a long-term accomplishment or gain. The Frisbee just isn't worth it!
Be prosperous!
Peggy
The number one reason that students have to drop out of college isn't bad grades; it's that they cannot afford to stay any longer. They have applied for too many cards, spent more than they can afford, maxed out student loans, tapped loved ones dry, the minimum wage job they have isn't enough.
As we age, the promotions don't go away; they just change. Now, I get credit card applications with the promise of enough free miles to take a trip if only I will apply.
I have credit cards. My favorite offers free miles, but my husband and I pay it off every month. If you want to rent a car, you have to own a credit card. Using credit responsibly is not a bad decision, but the trick is understanding the difference between good credit decisions and poor decisions.
Taking a loan to purchase a home is very common. If the home is within your budget, you pay a sizable down payment, and every month, you pay off both principle and interest, you are likely okay. (I've seen situations where the person wasn't okay, but usually one of the criteria wasn't really met.) Taking out a student loan to pay for a college education is an investment in yourself and your future. However, buying a bigger house to impress others or using student loans for Friday night parties with friends is a poor use of credit.
Often, if you break down your credit card purchases, you will find they are spent on the discretionary items in your budget. Borrowing money for discretionary spending creates nightmarish situations. If you can't afford to pay for it this month, just wait a month. Don't put it on a card with the idea of paying it off over time. Save the credit for those items that really matter, where you can obtain a long-term accomplishment or gain. The Frisbee just isn't worth it!
Be prosperous!
Peggy
Wednesday, January 13, 2010
Emergencies in Retirement
First, sorry for the gap yesterday. I got caught up doing other projects--my bad.
Many times, I'm afraid we think of an emergency fund in terms of younger peoople with less job stability, less money in savings, and more monthly bills. However, emergency funds aren't only for the young. Do you need an emergency fund during retirement? Yes, you do. Even if your house is paid off, you pay cash for cars, and you don't carry a credit card balance, you still need an emergency fund during retirement. Two areas loom over your plans--healthcare and a stock market decline.
A reserve fund for healthcare can assist if an unexpected illness has treatments not covered by insurance or if your out-of-pocket is high. If you rely on your investments for monthly income, the worst thing that can happen is the need to sell securities to generate monthly cashflow in the middle of a market turmoil. (Now, by this, I am not saying that buying and holding through anything is correct. A buy and hold strategy actually needs to be implemented as carefully as a trading strategy, but that's a conversation for another day.) Not holding enough cash forces the selling of stocks, bonds, or funds at times you might not want.
How much reserve fund do you need? Well, the healthcare component has a lot to do with the quality of your current insurance (both health and long-term care). Holding at least the deductibles might be wise. The investment emergency fund is much more complicated. I like to hold at least a year of monthly distributions in cash, but I cannot advise you what would work for you in this blog. Everyone's needs are different, and you might need two or three years. I recommend you talk with a CERTIFIED FINANCIAL PLANNER (TM) certificant to help you with this decision.
Retirees are often looking at their life savings in front of them and a significant number of quality years ahead. Planning for financial emergencies at this time can help with your quality of life and your ability to sleep at night.
Be prosperous!
Peggy Doviak
Many times, I'm afraid we think of an emergency fund in terms of younger peoople with less job stability, less money in savings, and more monthly bills. However, emergency funds aren't only for the young. Do you need an emergency fund during retirement? Yes, you do. Even if your house is paid off, you pay cash for cars, and you don't carry a credit card balance, you still need an emergency fund during retirement. Two areas loom over your plans--healthcare and a stock market decline.
A reserve fund for healthcare can assist if an unexpected illness has treatments not covered by insurance or if your out-of-pocket is high. If you rely on your investments for monthly income, the worst thing that can happen is the need to sell securities to generate monthly cashflow in the middle of a market turmoil. (Now, by this, I am not saying that buying and holding through anything is correct. A buy and hold strategy actually needs to be implemented as carefully as a trading strategy, but that's a conversation for another day.) Not holding enough cash forces the selling of stocks, bonds, or funds at times you might not want.
How much reserve fund do you need? Well, the healthcare component has a lot to do with the quality of your current insurance (both health and long-term care). Holding at least the deductibles might be wise. The investment emergency fund is much more complicated. I like to hold at least a year of monthly distributions in cash, but I cannot advise you what would work for you in this blog. Everyone's needs are different, and you might need two or three years. I recommend you talk with a CERTIFIED FINANCIAL PLANNER (TM) certificant to help you with this decision.
Retirees are often looking at their life savings in front of them and a significant number of quality years ahead. Planning for financial emergencies at this time can help with your quality of life and your ability to sleep at night.
Be prosperous!
Peggy Doviak
Monday, January 11, 2010
Financial 911
Those of you of a certain age remember the television show, "Emergency." For those of you who don't, the title gives it away. It was a show with two good-looking paramedics who went on emergency runs to help people deal with unexpected events. We also have unexpected financial emergencies, and it's important that we plan for them as best we can.
In today's economy, if you aren't worried about losing your job, you're lucky. With one cold snap, pipes burst and carpet, appliances, and dry wall suffer. In that same cold snap, going to get the mail can be a treacherous adventure. (Sorry I'm focusing on arctic weather; it just seems so appropriate right now!) The one thing these emergencies have in common is a need for money.
Everyone should have a financial emergency fund. Last week, you began calculating your monthly expenses. Your emergency fund should be equal to three (if your world is extremely stable) to eight (Suze Orman's recommendation) months of these expenses. If this amount of money seems overwhelming, eat it like an elephant--one bite at a time. You don't have to save it all right now. Just make saving the emergency fund a monthly goal.
Where do you keep your emergency fund? The answer is really boring--the bank. Your emergency fund is NOT to be invested in the stock market, mutual funds, or annuities. The only acceptable investment would be in a money market fund. Don't even use a certificate of deposit (CD). Why am I being so picky? Your emergency fund must be safe and liquid (or quickly convertible to cash without loss of principal). Stock market investments aren't safe, even if they're liquid. Annuities (variable) are often not safe or liquid, due to investment subaccounts and surrender periods. CDs are safe (insured by the FDIC), but they aren't liquid--you can't immediately convert them to cash. Savings accounts or money market funds are both safe and liquid.
Don't have a financial emergency, even to meet the cute paramedics. Keep your money safe and sound and know that there is space between you and a financial disaster.
Be prosperous!
Peggy Doviak
In today's economy, if you aren't worried about losing your job, you're lucky. With one cold snap, pipes burst and carpet, appliances, and dry wall suffer. In that same cold snap, going to get the mail can be a treacherous adventure. (Sorry I'm focusing on arctic weather; it just seems so appropriate right now!) The one thing these emergencies have in common is a need for money.
Everyone should have a financial emergency fund. Last week, you began calculating your monthly expenses. Your emergency fund should be equal to three (if your world is extremely stable) to eight (Suze Orman's recommendation) months of these expenses. If this amount of money seems overwhelming, eat it like an elephant--one bite at a time. You don't have to save it all right now. Just make saving the emergency fund a monthly goal.
Where do you keep your emergency fund? The answer is really boring--the bank. Your emergency fund is NOT to be invested in the stock market, mutual funds, or annuities. The only acceptable investment would be in a money market fund. Don't even use a certificate of deposit (CD). Why am I being so picky? Your emergency fund must be safe and liquid (or quickly convertible to cash without loss of principal). Stock market investments aren't safe, even if they're liquid. Annuities (variable) are often not safe or liquid, due to investment subaccounts and surrender periods. CDs are safe (insured by the FDIC), but they aren't liquid--you can't immediately convert them to cash. Savings accounts or money market funds are both safe and liquid.
Don't have a financial emergency, even to meet the cute paramedics. Keep your money safe and sound and know that there is space between you and a financial disaster.
Be prosperous!
Peggy Doviak
Friday, January 8, 2010
Getting Help
If you watch television at two o'clock in the morning, you've seen the ads for companies promising to help you get out of debt, reduce your bills, and pacify the IRS. Well, this column is a warning. Most of those companies overstate in promises and understate in performance. Yes, some are legitimate, but it is really a "buyer beware" world. Where do you turn for debt reduction advice you can trust?
One of your best bets is to call Consumer Credit Counseling Services, the not-for-profit organization. They can help you devise a plan for managing your debt. Their website will end in .org, not .com. Websites ending in .org are not-for-profit organizations. Companies using .com are commercial endeavors. CCCS can begin to help you get organized. Not only are the commercial sites expensive and of varying levels of competence, but they can also completely destroy your credit, depending on what tactic they choose.
If you owe the IRS money, talk with a good CPA. The CPA can tell you your payment options.
Finally, never pay off credit cards with home equity lines of credit. Depending on your situation, some of the credit card debt could be relieved in bankruptcy. Don't risk your home to pay off your discretionary spending, even though the interest rate is better.
Now, everyone's situation is different, and it's possible that some of this advice won't work for you. However, for most people these are good initial steps.
Be prosperous!
Peggy
One of your best bets is to call Consumer Credit Counseling Services, the not-for-profit organization. They can help you devise a plan for managing your debt. Their website will end in .org, not .com. Websites ending in .org are not-for-profit organizations. Companies using .com are commercial endeavors. CCCS can begin to help you get organized. Not only are the commercial sites expensive and of varying levels of competence, but they can also completely destroy your credit, depending on what tactic they choose.
If you owe the IRS money, talk with a good CPA. The CPA can tell you your payment options.
Finally, never pay off credit cards with home equity lines of credit. Depending on your situation, some of the credit card debt could be relieved in bankruptcy. Don't risk your home to pay off your discretionary spending, even though the interest rate is better.
Now, everyone's situation is different, and it's possible that some of this advice won't work for you. However, for most people these are good initial steps.
Be prosperous!
Peggy
Tuesday, January 5, 2010
Try to Remember!
Yesterday, I gave you a task to write down everything you spend for a month. Today is your second day of that task, and I'd like to offer some suggestions on how to keep track of what you do.
1) If you have a "smart" phone, make a note to yourself.
2) After you finish shopping, call yourself and leave what you spent as a voice message.
3) Buy a little notebook, and carry it in your purse or pocket. That way, it's always with you.
Most people have trouble with this exercise when they are busy and make purchases early in the day. By dinner, that stop at Starbucks is a distant memory!
Be prosperous!
Peggy
1) If you have a "smart" phone, make a note to yourself.
2) After you finish shopping, call yourself and leave what you spent as a voice message.
3) Buy a little notebook, and carry it in your purse or pocket. That way, it's always with you.
Most people have trouble with this exercise when they are busy and make purchases early in the day. By dinner, that stop at Starbucks is a distant memory!
Be prosperous!
Peggy
Monday, January 4, 2010
Personal Cash Flow (We don't like budgets)
Yesterday, I told you that you would have an easy task today, and it's easy, but it will take you a little time to complete it!
I want you to write down every dollar you spend and what you spent it on for one month. I had a client return one time after completing this task, and $2,000 was labeled miscellaneous! Now, I don’t mind if just a little bit of money isn’t categorized, but $2,000 in misc. is a cop out. You need to be honest about how you spend your money. Remember that these are your cash flow decisions, so don’t worry about making me (or somebody else) mad. If you don’t do this honestly, it won’t work.
If you use an ATM card, the withdrawal isn’t the transaction, it’s what how you spent the money. So “ATM” isn’t a category either! If you have a weakness for $5 lattes, write it down. If you like electronics, write it down.
I don’t want you to judge yourself while you do this. There are no wrong answers, just an honest look at where your paycheck’s going. I told you it was easy. Tomorrow, we’ll figure out why this is so important…..
Be prosperous!
Peggy
I want you to write down every dollar you spend and what you spent it on for one month. I had a client return one time after completing this task, and $2,000 was labeled miscellaneous! Now, I don’t mind if just a little bit of money isn’t categorized, but $2,000 in misc. is a cop out. You need to be honest about how you spend your money. Remember that these are your cash flow decisions, so don’t worry about making me (or somebody else) mad. If you don’t do this honestly, it won’t work.
If you use an ATM card, the withdrawal isn’t the transaction, it’s what how you spent the money. So “ATM” isn’t a category either! If you have a weakness for $5 lattes, write it down. If you like electronics, write it down.
I don’t want you to judge yourself while you do this. There are no wrong answers, just an honest look at where your paycheck’s going. I told you it was easy. Tomorrow, we’ll figure out why this is so important…..
Be prosperous!
Peggy
Sunday, January 3, 2010
Budget--a four letter word
Okay, I know that "budget" is a six-letter word, but you know what I mean! Budgeting is an awful process, and yet most of us (me too) need to understand how we spend our money. Since we all hate the word, I propose a new term: Personal Cash Flow.
"Personal Cash Flow" sounds like a corporate process, not a way to keep me from buying those cute Valentine napkins at the discount store that I don't really need! And I think the term is more descriptive.
Your cash flow decisions are personal. At the end of the day, you will spend whatever you want to spend. I might give you some ideas. Your loved ones might have ideas, but it's your choice.
I think when we realize that we actually get to control our money decisions (rather than feeling "acted on" by our money), we begin to change our relationship with money and become more successful. A new task tomorrow (it's easy)..........
Be prosperous!
Peggy
"Personal Cash Flow" sounds like a corporate process, not a way to keep me from buying those cute Valentine napkins at the discount store that I don't really need! And I think the term is more descriptive.
Your cash flow decisions are personal. At the end of the day, you will spend whatever you want to spend. I might give you some ideas. Your loved ones might have ideas, but it's your choice.
I think when we realize that we actually get to control our money decisions (rather than feeling "acted on" by our money), we begin to change our relationship with money and become more successful. A new task tomorrow (it's easy)..........
Be prosperous!
Peggy
Saturday, January 2, 2010
Merging Cash Flows and Dreams
After too many hours of football, today it's back to work! My friends (who don't own their own business) say "Isn't it nice to take off whenever you want?" I tell them yes, I'm free to work any sixty hours a week I want! So today, I'm back at it. And probably tomorrow, the Christmas gets put back in the closets and attic.
Yesterday, I suggested that you list some of your goals and dreams, from short-term goals to long-term. Why is it important to write things down? I believe that writing things down makes them more real to us. It's easier to change our minds when we don't have written proof otherwise! Some of your goals may be very achievable and some of them may be difficult or seemingly impossible. That's okay. You might be surprised what you can do.
Now, without worrying whether or not you can afford it, put a cost or price beside each of them. Don't underestimate it. Just write it down. If you aren't sure what it costs, then look it up before you continue. Remember the old proverb that if you don't know where you're going, you won't know when you get there!
Be prosperous!
Peggy
Yesterday, I suggested that you list some of your goals and dreams, from short-term goals to long-term. Why is it important to write things down? I believe that writing things down makes them more real to us. It's easier to change our minds when we don't have written proof otherwise! Some of your goals may be very achievable and some of them may be difficult or seemingly impossible. That's okay. You might be surprised what you can do.
Now, without worrying whether or not you can afford it, put a cost or price beside each of them. Don't underestimate it. Just write it down. If you aren't sure what it costs, then look it up before you continue. Remember the old proverb that if you don't know where you're going, you won't know when you get there!
Be prosperous!
Peggy
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