No, Wait, Don’t Quit, You’ve Just Started

I recently read an article where the University of Scranton revealed the sobering news we really didn’t want to hear.

Many people, about 40% of American adults, make resolutions at the beginning of the year. They make them for all kinds of commitments, but the top ones, according to IQuanti and compiled from Google search data, involve getting healthy with weight loss and exercise programs, getting organized, and living life to the fullest.

Lofty objectives are set, to find that, by mid-February, people have parted company with 80% of their  resolutions, according to U. S. News. Apparently, January 12, is the most common day for resolutions to begin to waiver.

Overtime, according to the University of Scranton study, only eight percent of those who make New Year resolutions, fulfill them in a timely manner. Wow, what is going on?!

Perhaps it’s not in the making of the resolutions but in the motivation, payoff and real commitment to these resolutions.

With resolutions you have made, how specific were they? The more specific they are, the easier they are to stick to. Then building action steps to hold yourself accountable to are your best tools. But only make one action item at a time. Do not overwhelm yourself with “THE List” of action steps. Instead create the first step with a timeline, do it, report back, and add the next step. Your action steps will get you to your goal over time.

How is your commitment to your resolutions? Don’t quit yet, you’ve just started!

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This Year Money and I will Be Friends

Millennials, 81 million strong, are being scrutinized by researchers to learn about their financial habits and behaviors. One study, from a USA Today/Bank of America Money Habits Poll, found that one in five millennials are not saving money.

Another survey, hosted by Fidelity, found that over half the millennials had not started saving for retirement. Instead this generational cohort are wrestling with a different top financial issue: paying off credit card debt. As Fidelity also discovered, 4 in 10 millennials they survey worry about their financial future at least once a week.

Is this a case of one generation passing on habits and behaviors to another generation? Is this because money has become harder to understand? Is it because it is too easy to spend money?

I know that when I work with people on transforming their money behaviors and habits, there seem to be three main areas around money that cause major problems. They are:

  • the inability to communicate about money without a shroud of anxiety layered over the conversation
  • the feeling of being out of control when there is a constant barrage of decisions to make with your money
  • No reliable system in place to track, tweak and oversee money habits.

My initial recommendation, if money is a source of anxiety for you, is to step back and answer these four piercing questions:

  • What does money mean to you?
  • What do you want it to provide for you?
  • How far away are you from realizing question two?
  • Are you willing to do what you have to do to make question two happen?

These are not easy questions to answer, so give yourself the space to answer these fully for yourself. The responses you come up will not necessarily change your habits with money right away. What they will do is help you to become clear as to the purpose of your money so that you can then direct your attention to the areas of communication, control and systems around your behaviors with money.

As you pursue your mastery of money, make this your mantra for the year: “This year, money and I will be friends, and not part company as easy and as often as we did last year.”

Where Do You Stand on these Two Competing Views on the Future of Money

I recently read two books with similar names: The Evolution of Money, by Percy Kinnaid, published in 1909. and Evolution of Money, by Rupert Ederer, published in 1964. They both contained nuggets very appropriate to today as the authors wrote about money morphing from a value-based currency tied to gold, to one based on credit and good faith.

 

Here is a takeaway from Kinnaid’s book: “Money has evolved from concrete objects of intrinsic worth, used as standards of value, to paper representatives of ‘words’, originated to express the unit of value and its multiples and subdivisions.”  This is a profound change where promise and/or good faith  has replaced intrinsic value.

 

Ederer, in his book, wrote that extending credit would result in more good outflow in an economy which in turn would reduce gold’s supply and reserves. He added that taking us off the gold standard facilitated exchange and progressed the evolution of money to making money more functional and emancipating it from an imposed limit.

 

Ederer also wrote about and distinguished two theorists: the commodity theorists and the nominalist theorists. Broadly speaking, Ederer surmised that the commodity theorists advocate that the nature of money itself gives it value. They appreciate the present through the past, and value the origin of money, tying it to gold. The nominalists advocate that anything can be used for money. They appreciate the present by ignoring the past, and are divorced from money’s association to gold, believing money still has value. They point to the cultures where gold was never part of their money system and yet these cultures flourished.

 

Today, with traditional money, cryptocurrency, bitcoins and other types of currency in development, along with easing of credit, it is fascinating to listen to those on either side of money and its future value. Where do you stand? Should the future of money be based on solid ground like gold or shifting sand like new currencies, when it comes to “money” and its value?

A Look Back and a Peek Forward

As 2018 closes its remaining open doors , I reflect back on those who have made my year the satisfying one it has been. I appreciate your journey to elevating that which matters and to strengthening the world of legacy, life and money matters.

 

Thank you for your support of the work Focus and Sustain promotes.

Thank you for your commitment to significance and purpose.

Thank you for sharing your stories of success and the weighty challenges you faced and dealt with.

 You have given me great insight with the conversations we have had.

 

You have given me an opportunity to think more clearly with the questions you have asked and the stories you have shared of your own journey on creating, building and sustaining  strong legacy families, lives with purpose, and powerful money behaviors.

 

You have been an essential ingredient to making the circle of Strength and Significance mightier than it was when this year began.

 

As I peek into the year ahead,

 

I wish you a Meaningfully Focused 2019

Give Your Family Its Wings

Are you building your wealth only to see it gone by the time your great, great grandchildren are growing up and asking about their roots? Most families do not keep ancestral footprints. You can change that by creating a living and engaging family history, footprint, and legacy.

According to research done by The Williams Group, who researched families of great wealth,  70% of families with  assets and stories, values and meaning, will find their money gone by the end of the 2nd generation. Shocking? For those 70%, probably yes.

The research continued to find that 90% of families are unable to have their wealth pass on beyond the third generation, in other words, beyond their grandchildren.  Why is this?

Families survive and thrive not by money transfers alone, the above statistic evidences that.  Families stay together because of a “why.” This “why” is the glue that voluntarily keeps them unified. This “why” includes the history of who you are, where you came from, what shaped you. It is your family’s living legacy.

Consider this: the etymology of Legacy according to the Online Etymology Dictionary stems from the 14th Century French: “legate-body of persons sent on a mission”, and from the middle Latin “ambassador or envoy.” Give your family its wings by creating its legacy. This will keep them connected for generations well beyond your initial contributions.

You Need the Right Focus to Live a Life that Matters

As you may know, the concept of purpose and its practice is key to happiness. Purpose is difficult for many people to grasp because we are encouraged to be constantly on the go, and to fit in, neither of which speak to purpose. It is easy to wander through life and look back at an advanced age and wonder: “What happened? Why am I unsatisfied? What was my purpose?”

What is purpose? The Etymology Dictionary says that “purpose” stems from the 14th century Anglo-French purposer, meaning “to design.” However, purpose did not just appear then, it had already played an essential role in Asia, the Middle East and civilizations going back millenniums. Purpose is a cornerstone to living a life that matters.

Author and co-founding partner of the Australian company, Sonder, Jonathan Hopkins, wrote in a blog wrote: “Successful organizations (like Nike, IKEA, Ben & Jerrys, Lorna Jane, Apple) all have an idealistic purpose which is followed, worshipped and preached by its employees and customers alike. Without a powerful purpose, leaders will struggle to motivate their employees and customers will struggle to find a reason to connect with the organization.”

What is your purpose and how are you expressing that in your community?

A Profound Quote from 1688 to Mull Over

Back in the day, this day being 1688, the poet, philosopher, and author, Jose DeLa Vega, wrote a book called Confusion de Confusiones: Portions Descriptive of the Amsterdam Stock Exchange. It is considered a masterpiece and the oldest book written about the stock exchange, then, the “leading center of the world.” The book is rare with only a half-dozen copies known to be still in existence.

Confusion de Confusiones is centered around the following characters: the philosopher, the merchant, and the shareholder as they bring their questions and share their knowledge, and perspective of the market. There is a passage early in the book which I want to bring to your attention: “Truth is not hurt by being hidden. It is hurt by being altered. “…Truth is not violated by those who hide it, but by those who alter it…” This resonates strongly with me as I try to decipher what is fact, as I try to understand various views and perspectives of the same experienced or witnessed event, as I try to separate what is real from what is illusory.

In the spirit of honoring your journey into meaning and significance, relevance and understanding, I give you DeLa Vega’s words to mull overs as you build your life of significance, searching for that which resonates true for you.

Putting a Framework Around your $ Spending will Serve you Well

It is no wonder that people do not know how to use money responsibly. After all, money has no intrinsic value. But that is no excuse for us not to put value on our money.

Our mind works best when we can identify with that which we are thinking about or relating to. It is hard to do that with money as money can be used in so many ways and can mean so many things to it. When we do not take the time to understand the meaning of money to ourselves, it is easy for us to be pulled this way and that with money “opportunities.”

It is valuable to us to build purpose and meaning for our money. A framework around our money lets us make choices around that which we want to accomplish or express, and not be tossed about in the wind of money choices bombarding us daily.

Try this two-part exercise to note your response with money: Part 1: the next time you purchase groceries, use a credit  card and note your reaction to spending. You probably will not have much of a reaction as your card represents a promise to pay…later.  Follow that up with Part 2: Purchase groceries using cash. How did that make you feel? Note the difference you felt between the 2 mediums of exchange.

For most, using their credit card is more removed and less emotional while using cash usually produces feelings of doubt, loss, or withdrawal.

Have you ever seen someone eat too much? If not, you should. Why? Because it will teach you something about money. How do you stop? When you are full? When you have ingested enough for your body to efficiently use? How do you know when to stop eating? There are few boundaries to eating. It is the same with money. What stops you from spending? Put a framework around your money behaviors and habits. It will serve you well.

A Ridiculously Brief and Incomplete Historical Perspective of Currency

The ancient Chinese used cowrie shells as currency. Babylonia used barley in their towns and villages while silver (shekel) was used mostly in their cities. As I understand, silver and cattle were used by the Jews for much of their trade while Greeks used silver and ox. The Persian Empire used both animals and gold. Copper and bronze, as materials of trade, were introduced by the Romans, presumably, in the 3rd and 4th Centuries B.C. As you can imagine, trade was difficult on a mass scale or in long distances as animals and barley were cumbersome to move from place to place. Cowrie shells were a lot easier to transport but many villages and tradespeople did  not honor them. They were not valued n their own locales.

Because metal transport was heavy, metal currency stayed local.  Bronzed axes in Gaul and iron swords in Britain were common local metal currencies. By the 3rd Century A.D., the metals in the coins were so minimal that the coins’ value were minimal.  Except for gold. Gold’s value increased to the point when, by the 4th Century A.D., gold was the standard bearer for currency exchange. It too was heavy. As it was also difficult to transport, it was not yet in great quantity. But its value was known, its sources were searched, fought over, and hoarded.

Wampum was a common unit of currency between the English and Dutch in the new Americas. Tobacco notes were issued when wampum beads were discontinued. Metals, such as gold and silver, were hard to come by in the developing territory.

Gold eventually became the standard of measurement for most currency, and more specifically, paper money. Because Its purity could be measured, it had stability. Its size could be measured against its purity. This gave currency a standard and ease in “foreign” exchange, exchange beyond one’s borders. Until recently (the last hundred years), there was a direct ratio between  the amount of gold a country stored and the amount of currency it had in circulation. A modern country “back then” backed its currency by its gold. That is significant to think about. A strong country did not have more money in circulation than it had gold.   Today, that has changed. The gold standard has been removed. Most currency is pegged to the US dollar which, itself, is backed by “the full faith and credit” of its government. More money can be printed as its measure is based on faith and credit. As long as that good “full faith and credit” is supported, its money is valued.

3 Tips to Developing Money Stewards at Home

An effective way to view  money at home is to regard money education as a process rather than as a single event instruction. When money education is set up like this, money behaviors can be talked about, tweaked and managed more easily.

Here are 3 tips to get you started in developing money stewardship at home:

1        Begin by asking your family members what money means to them. Once the question has been asked, listen, without interruption to their response. It is critical that you not interrupt so your family members feel listened to. They do not want to feel this was a set up question for judgement and commands. When your children feel heard rather than feeling like they are being judged, they will more likely be candid with you in their response.

2        Put together an agreed to plan of action to develop valuable money habits in these areas: saving, invest, donating, earning, spending, what we at Focus and Sustain call the 5 S.I.D.E.S. of Money©. You will find your children are drawn more to one or two “sides” more than others. Explore these with them. Create limits and challenges for them to explore their interests.

3        Talk about money. Set up money nights where you talk about topics like: budgets for vacations, issues your children are running into, budgets, how to make money choices, etc.  Open  up the dialogue with welcomed feedback, with parameters around accountability, develop measurability to plans. All these will develop stewards to money at home.