The best thing about getting older is that you move into yourself more fully. When I was younger, I lived in only a part of myself...the rest was occupied by a person who others thought I should be. As time has passed, I've kicked those non-me parts out and taken full residence.

I just passed another birthday, and I find myself taking stock of the "state of the person" named Susan when a birthday is near. Having just completed that process, these are the things that I noticed:

• I thought I'd feel a lot older than I do by this time. There are certainly parts that don't work as well, and some landmarks that used to be above the mid-line of my body have shifted south (thank you(?), gravity) but all in all I am healthy, happy and moving pretty darn well.
• I no longer look to the future to fulfill my dreams. If not now, when? I have been operating from a plan to incorporate all that I've thought of doing later into my life now.
• I know without a doubt that I'm in charge of my life. I don't need permission or approval from anyone else to create a full life.
• I wouldn't be who I am today unless I'd experienced everything I have to-date, so there are no regrets for what has happened to me and the choices I've made.   I'm not saying I've done everything perfectly but that I've accepted what has gone before and have made the choice not to judge the results.

 I took stock of where I was and decided that I felt comfortable in my skin and with my future. Having the opportunity of a birthday to do this, I got to thinking how this "taking stock" process is very similar to what happens to my clients just prior to hearing from them for the first time.

Sometimes clients wait months or years before taking stock of their situation and finally connecting with me (!) and the waiting nearly always comes at a price. If you're thinking of taking stock, today's article is especially for you!

As for me, I am looking forward to another year of being fully myself! 

Until next time,

Susan

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It's worth taking stock of where you are with an eye to the overview because you can put solutions in place now that will facilitate how easily your finances can operate. The actions you take today can make that future a whole lot better.

Most new clients tell me that they wished they'd called me years before they actually did. Many have said that they thought about getting in touch years before...they had gotten my contact info, a referral from a friend or professional, or read my newsletters...and didn't take action.

The financial cost of avoiding action is easy to measure: often a loss in potential savings or interest charges. But what about the price of a lost opportunity or the expense of an argument with a partner or loved one? You can't put those costs on a spreadsheet, but the emotional price can feel very heavy. That's why I am passionate about what I do - it is about more than the money and money management.

And yet, I find that many people worry that managing their money will be difficult and make them feel deprived. Or that working with someone like me will bring up negative judgments about their financial behavior.

The truth is, healthy money management is just a tool - and when your day to day money steps and skill are in place, money management won't feel like imprisonment, it will liberating!

So what makes up healthy money management? We hear bits and pieces, many times about savvy investment strategies. Have you wondered what those day-to-day money steps and skills are?

These are the areas that I check out with my clients when we work together:

• Bill Paying: this happens every month, so why not make it seamless. If you develop a bill paying routine, you don't have to think about it much. There are many routines that can work well: pay bills as soon as they arrive, pay bills the first Saturday after a paycheck, pay bills the 1st and 15th of the month...it doesn't have to be complex, just predictable and routine.
• Spending Mindfulness: you want to know your normal spending habits. What do you usually spend on groceries, eating out, errands, the kids, the pets...the flexible spending that makes up such a large part of our lives? Most people can rattle off their bills and fixed expenditures, but what about everything else? The overview perspective is critical.
• Respecting the Power of Irregular Expenses: there are expenses that don't happen monthly...car servicing, registrations, taxes, vacations, birthdays, holidays...and the health of your money life can be greatly affected by how you handle these. You need to have a tested system in place to handle them or you will experience cash flow blips on a regular basis that will feel very defeating.
• Understanding Your Credit: if you owe money, how much, at what interest rate, and what is it costing you per month to carry that credit (interest costs plus pay-off)? What are the kinds of expenses that end up on credit cards? You also need to be mindful of your credit score and what factors influence it because that score is used by others to evaluate you...potential employers, landlords, insurance agents, as well as potential and existing creditors. Here's something else to think about: Did you know that although the old advice was to close accounts you're not using, the new advice is to leave them open? How long you've had an account and the available credit balances are both factors in credit scores.
• Safety Nets: there are three major levels of this. The first level is an account that accumulates the money for irregular expenses so that when they show up it isn't a cash flow nightmare. The second level is an account that handles the unexpected (layoffs, medical difficulties, and whatever else life has up its sleeve) called emergency savings or prudent reserve. The third level is money for the future-you who can't work anymore, often called retirement savings. When these are being seen to, then you might also want to have college savings (if you have kids). The trick is that you need to be saving for all of them simultaneously. (I know, simple but not necessarily easy.)
• Money Conversations: unless you can talk with your partner about money in an easy and constructive manner, you will have difficulties reaching your goals and staying in financial serenity. As a financial counselor and coach, I take it as a given that couples have two different money styles, so communication is vital in order to bridge those differences and stay on your selected objectives.
• Financial Template: this is a series of accounts, assigned tasks, and financial skills that keep your money life ticking along with very little intervention.   Everyone involved is on board and aware of what is expected so the system works without taking up unnecessary time or energy.
• Financial Team: you need experts to help you get all these pieces together. Members of your team could include a bookkeeper (or money tracking program), tax advisor (or software), an investment advisor (or online research and subsequent plan), a financial counselor to help you create the financial template (or online websites and collaborative planning with your partner and family), communication experts (therapists, counselors or workshops) and appropriate attorneys so that all necessary documents are in place (estate documents, guardianship agreements, etc.).

So, looking over that list, how do you rate your financial health? Do you have the components I've described in place to make your financial life smooth and flawless? If the components are in place, are you using them so that the system works without drama, effortfulness or crisis?

Or maybe you see an area that needs some help. Perhaps it's time for a check-up. Are you ready for a new financial "prescription?"  

Let's use the free hour consultation that I offer to new clients to take stock of the healthy money "you." The money-doctor is In. Email me today or call me at (415) 479-1290 to schedule your "appointment." I look forward to hearing from you!