An Introduction

Follow the video series developed to begin your journey to Build Your Own Financial Map #BYOFM:

Build Your Own Financial Map – Ep 1

Feedback, questions and shares are greatly appreciated! Let me know how I can help you get started today.

#Homebuyer Bootcamp 2017

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Is 2017 the year you buy a home? Join me in Fishers or Broad Ripple for three fun sessions to get you financially fit in our  Homebuyer Bootcamp .

In January, EXPLORE your dream home “must haves”,  the puzzle pieces that influence your options and the roadmap to get you where you want to be.

In February, EVALUATE your rates, ratios and percentages and how you can make them even better to work in your favor. Run different scenarios to see how location, property type and programs can impact your options.

In March, EXECUTE your plan as we help you put the final pieces together and give you the tools to make it from an offer to closing as smoothly as possible.

Limited spaces available! Register today by emailing dmorris2@firstmerchants.com .

 

Living Lean in 2017

If you had to take an inventory of everything you own, what would that look like? How does it make you feel?  Does it truly reflect your character and values?

One of my favorite quotes from The Little Prince, by Antoine de Saint-Exupery is “you become responsible, forever, for what you have tamed”. So simple, yet so profound. The same holds true for what you possess. Each piece represents an investment of time and labor, as well as ongoing time and cost in storing, protecting and maintaining.

In the early 1990’s Lean Management became popular in manufacturing and business management. The idea of reducing wasted resources – time, talent, inputs and costs – in order to zero in on what truly adds value to a product or service, offers many interesting lessons. Here are three for you to consider:

  1. Clarify your priorities – Make a short list of what matters most to you at this point in your life. Another way to think about it is to describe your perfect day. What activities would you be doing? Who would you be with? Where would you be?
  2. Identify your burdens and obstacles – Track how you are spending your time and resources. Take an inventory of what you have/do and label each with how valuable and necessary it is for you. Include activities where you volunteer, have a membership or make a contribution.
  3. Take Action – Start with the most obvious and easiest by donating, selling, gifting or recycling. If it does not add meaning or value to your life then let it go. Cancel memberships; take time off from groups that are not moving you forward. Be protective of your time, energy and talent.

Kick off 2017 with a Lean, Agile mindset. Be focused and intentional on doing what matters most to you.

Finding #FinancialWellness

If you are feeling like you’re barely treading water, this message is for you.

As you wrap up another day, crossing off items on your to-do list, how much progress have you really made? Think about each item on your list. Was the activity well thought out, delivered at the best time, with a clear purpose of moving to the next step of the plan?

Invariably we often find ourselves making calls, replying to emails and attending meetings without being fully prepared or present. Unfortunately this means that we are not being our best and we are not making the kind of impact we are capable of making. In a sense, we are cheating ourselves out of enjoying deep satisfaction in our work and short-changing ours peers and friends in experiencing our full potential.

This same behavior translates into the way we manage our finances. We do the activities required to stay on top of our obligations, checking off items on our to-do list. On the surface, things look decent, but we really don’t know how we’re doing or whether we’re making any progress at all.

Consider blocking off 30 minutes each week to schedule deep thinking time specifically focused on how you manage your finances. Start with one area of your management process. Break down this one area into the smallest increments possible. Write down each piece and identify aspects that could be merged, improved or even eliminated.

In your next session, start researching the aspects you’ve identified. Once you have two or three alternatives or improvements, prioritize them and create a plan of action to begin implementing your changes. The goal of this exercise is to establish intentional processes that will guide your activities and clarify the purpose of your actions.

I work closely with individuals and group to improve their financial wellness. You are invited to follow me on twitter @dmorrisandco . If you want more information, please add a comment.

Helping people find their #financialwellness one day at a time.

You Manage. I Manage. We All Manage.

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At some level we are all managers. Whether we manage people, products, procedures or time, it is part of our daily fabric. On the most basic level managing is comprised of thousands of micro decisions. Our decisions can be made based on desired outcomes, fulfilling the expectations of others or part of a larger well thought out strategy.

Our unique management style flows out of who we are – Skills, Priorities, Interests, Community and Experiences. The clearer we can be about each of those areas, our focus and results will improve. Tracking activity with details about the place, time and our mood can offer valuable insights.

I define “managing” as executing goals by maximizing whatever human, natural, physical and capital resources are at my disposal, in the most efficient and cost-effective means possible, with a focus on continuous improvement across the entire experience. This requires on going creativity, innovation and development. It also requires an understanding and appreciation of the ever evolving landscape around us.

Managing well requires quick thoughtful action when there’s a disruption. It is imperative to continuously improve skills, re evaluate priorities, build new relationships and learn from past experiences. Travel light. Pivot frequently. Invest yourself in shaping that which only you can influence and control.

 

Buying a home? What do you really want?

As the Architect of your Own Finances, consider how home-ownership fits into your personal portfolio. In my previous post, I have shared that your personal portfolio is an ever-changing collection of Skills, Priorities, Interests, Community and Experiences. It is the unique SPICE that you bring to relationships and decisions. This evolves over time, so take a quick inventory of your personal portfolio to help clarify your next steps.

Skills – What types of skills do you have in maintaining a home? Do you enjoy cleaning, repairing, landscaping, and learning new skills needed to care for a home? Ask family or friends about some of the skills they’ve had to learn as a homeowner. Check out local hardware/home improvement stores for free workshops and online DIY videos.

Priorities – What is most important to you right now? How does your housing decision fit with your priorities and values? Think of how your living space impacts your health, social activities, finances, carbon footprint, flexibility and productivity. What changes could impact each of these areas in a positive way?

Interests – What do you really love doing for yourself? What type of living space would promote those interests? Do you want large windows to fill your rooms with light? Do you need privacy to practice music all hours of the night? Would you like to share a space or rent out a room? Is location more valuable than size or appearance? Start a list to use as a framework of what you really want.

Community – Identify people in your network that have the expertise or skills you may need. Consider bartering with friends for tools/equipment you may need occasionally. Look into possible discounts or special promotions you may qualify for based on existing relationships with your bank, insurance company or employer. What connections would you like to develop further and how will your housing promote that?

Experiences – This is what really makes a home. It should be your safe place, a sanctuary when you need to decompress. As you think about past experiences, use that to clarify what to look for and what to avoid. Imagine how your living space contributes to the experiences you want to have.

In every decision there are trade-offs. Take time upfront to consider what you are willing to give up in exchange for those things that really matter to you at this specific time in your journey. Realize that your living space should reflect your individuality. Happy house hunting!

Building A Strong Foundation

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Last Spring, I posted a piece called “Becoming the Architect of Your Finances“. It outlined the 5 ingredients that make up your Personal Portfolio; an ever-changing collection of Skills, Priorities, Interests, Community and Experiences. You can call it your “secret sauce” or your “art”,  I prefer calling it “S.P.I.C.E.” – the seasoning you add to whatever relationship or situation you’re in.

Your Personal Portfolio – each of these 5 ingredients – provides a framework that offers insight to the resources that you currently have at your disposal. It also highlights areas that are lacking or need reinforcing. Let’s examine each ingredient and the characteristics that will contribute to building a strong financial foundation.

Skills – One of the most important Skills in building a strong financial foundation is being really great at tracking.

In the same way that reaching your fitness or health goals requires tracking activity and nutrition, financial wellness requires tracking your numbers and results, as well. It takes work on the front end to develop a system that works for you, but will result in reduced stress and greater confidence in making good financial decisions.

Here are a few key numbers that will be important towards tracking your financial wellness:

  • 10% – Automatically set aside out of each paycheck or payment you receive. In the beginning, the funds will be used to build your Emergency Bucket.  Do this first and keep doing it as long as you have income coming in.
  • 25% – 50% of your annual living expenses. Your Emergency Bucket needs to grow and remain within this range. It will ebb and flow, as unexpected expenses come up and funds continue to be added.
  • 100% – Automatically contribute the minimum necessary to get a full match from your employer on your 401k. This will reduce your taxable income and build your retirement fund over time. If you don’t have a 401k, contribute at least 3% of each paycheck or payment received towards an IRA or ROTH IRA.  Start early and keep doing it as long as you have income coming in.
  • 30%/40% – Maintain monthly housing/rent expenses below 30% of gross income. This includes insurance, taxes and association fees.  Keep your total housing expense plus recurring debt payments under 40% of gross income.
  • 30% or less – Total balances on credit cards/ lines of credit as a ratio of the total credit available.  By maintaining low balances on existing lines of credit, this will improve your overall credit rating.
  • 740 – A credit score of 740 or better will get you the best interest rates and discounts, when you do need to borrow funds for a car, education or home purchase.
  • 12 months – The minimum length of time since you made a payment late – over 30 days late. The longer you have no late payments, the better your overall credit score and ability to borrow funds when needed.

To begin, you’ll need to identify where you are right now in each of these areas. That will provide a road map of what adjustments you will need to make. Start with one or two goals and re evaluate at least once a month to track your progress.

Tracking your progress towards stronger financial measures is critical. Next, I’ll share some insights on Tracking behaviors and activities that lead to a stronger financial foundation.

Step 2: Know How You Behave

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In my earlier post “Where to Begin? “, I shared two critical steps in self-evaluation: first, “Know What You Value ” and second,  “Know How You Behave”. In this post I’ll clarify the second step in the process.

Hopefully you’ve taken time to read and contemplate on the first step. Knowing what you truly value can become a grounding force, preventing you from straying too far off course on your journey. What are those principals and truths that are core to your story? I encourage you to revisit them often, especially during times of personal growth and transition.

Once you have a good sense of your values, let’s take a critical look at your actions. In a well balanced flow, actions should mimic core values. Not because they are well practiced, rehearsed or memorized. That would be considered manipulative and deceitful. Our actions, especially those that are spontaneous and reflexive, provide insights into our strengths, as well as our shortcomings.

Set aside some time to make some notes. Think about some of the interactions you have had with different people over the past few days. You might want to divide your notes into segments of your relationship to each of them. For example, interactions with loved ones, interactions with coworkers, interactions on social media or interactions with workers at places you patronized. As I mentioned in my previous post, be as transparent and genuine as possible in recording your actions. This is for your growth.

As you recall each interaction, think about your body language and the language used. What impact did the environment and circumstances of the interaction have on your actions? Did the time of day or your mood affect the interaction? Jot down patterns or inconsistencies you uncover. You might find it useful to carry around a journal for a few days to take notes as things happen, to better identify patterns and trends.

Let’s filter what you have discovered about your personal actions, how you behave, with your earlier notes on the five to ten core values/beliefs that represent your true self. There will be a disconnect. That’s where the opportunity lies.

Take a few final minutes to consider what are the “triggers” – environmental, physical, social, etc – that spark those actions that are not in line with your story. Think about where they are coming from and challenge whatever fears, insecurities or limitations you uncover. Choose two or three actions to modify, reduce or eliminate over the next several months. Create a plan of action, involve at least one friend and track your results at least weekly.

Your actions do speak much louder than your words. Pursue living true to yourself, in spite of your circumstances and moods. Please share any feedback you may have.

Step 1: Know What You Value

In my previous post ” Where to Begin? “, I shared two critical steps in self-evaluation: “Know What You Value” and “Know How You Behave”. In this post, I’ll share some insights on clarifying the first step.

Know What You Value – The first step in personal growth is identifying “YOU”.  Although you may share some similarities with friends or relatives, your story is your own. Every experience, the books you’ve read, the movies you’ve watched, your relationships – all of these have contributed and helped shape who you have become.

A useful tool in clarifying those beliefs and values that define you, is called “Mind Mapping”. This is a way to uncover the repetitive underlying themes in your life.

First, set aside some time and a place where you can avoid distraction. Get comfortable. Have your favorite writing tool on hand- paper, post-it, white board, etc. Spend a few minutes thinking about your story; those moments that are deeply impressed in your memory, turning points, times when you felt vibrant.

Next, begin jotting down events, words, or even images that represent your story. Don’t be concerned about putting anything in order or in any particular fashion. Avoid editing your thoughts at this point. This is for your eyes only. Take your time and dig deep.

Once you feel ready to move on, take a few moments to think about the core values and beliefs you would like to be evident in your life. What are the words you would like to be used to describe you? What will you be when you are fully living as you hope to? Begin to write down the words, values and beliefs as they come to mind.

How’s it going so far?  Need to get up and stretch?

The next step is to examine the two pieces. Where do they line up? What patterns do you see emerging? Are there glaring gaps between the two? Really take time looking at what you wrote and consider what underlying beliefs led to some of your actions/decisions or prevented you from taking action. You may decide to sit on this for a few hours and come back to it.

Finally, after analyzing your thoughts, identify five to ten key beliefs/core values that represent your true self. Write them down on a fresh page and write a short definition for each. Keep it in a visible spot, to remind you of what is critical – especially when considering how you invest your limited time, energy and talent.

Where to begin?

Self evaluation can be intimidating. It is through this process, though, that all sustainable  self-improvement must begin. Unless you are able to clearly identify the behaviors and actions that have brought you this far, your best intentions will not provide the results you hope for.

Keep it simple and very clear.

There are two main parts to self evaluation – Know What You Value and Know How You Behave. Wellness resides where these two core drivers intersect. They evolve over time and it is important to re-evaluate your position on a regular basis. I recommend doing this at least once a year and during any major life change.

Know What You Value – There are plenty of things each of us enjoy or would like to experience. Dig deeper and you will find very specific beliefs and ideals that you hold sacred. Where do you draw the line and take a stand? What key words define you? You may even craft a personal motto or saying.

Mind Mapping can be a great exercise to identify key themes, recurring patterns and find connections. Look for five to ten important insights that reflect your personal identity. Consider when these became important to you and what your life will look like when these key themes are being lived out daily.

Know How You Behave – Now you need to track how you are actually living in this moment. What are your routines and habits? Take time to track your activity for at least a week to ten days. How does your day flow? What distracts you? How do you deal with interruptions or unexpected changes? The better you can be specific about your actions, feelings and reactions, the better you will be able to clarify what needs to change.

Once you have these two core drivers identified, you will be able to see how well they are aligned. Identify two or three areas that are causing the greatest friction – where there is a large gap between What You Value and How You Behave. Begin working on these areas by creating a 30-day action plan to draw them closer in alignment to each other.

Need help? Check out my Life Coaching page!

Share your story. I’d love to hear your feedback.