Life and Career Skills

After helping a few friends with their 2010 resolutions, I realised thatwhat I take for granted as it relates to money management is not that obvious

for most people. Here are some reminders on how to manage your money.

1. Pay yourself first. Try to put away at least 10% of your pre-tax income into a savings account.

2. Spend less than you earn. While this seems obvious, most people are notorious for doing just the opposite. Stop spending and start saving.

3. Pay your bills on time. Avoid needless late fees and know how much money you actually have.

4. Avoid debt. Student loans and mortgages can be "good debt", but even then, make paying them off a priority.

5. Set a budget and live by it. Use a computer program or just a paper and pencil. Whatever works.

6. Set concrete goals. Know when you want to buy a new home, when you want to retire, and how much you are expecting each to cost you.

7. Have an emergency fund. Have at least three months' income in a high-yield savings account that can be easily accessed.

 

At a fundraising dinner for a school that serves children with learning

disabilities, the father of one of the students delivered a speech that

would never be forgotten by all who attended. After extolling the school and

its dedicated staff, he offered a question:

'When not interfered with by outside influences, everything nature does, is

done with perfection. Yet my son, Shay, cannot learn things as other children do. He cannot understand things as other children do.

Where is the natural order of things in my son?'

The audience was stilled by the query.

The father continued. 'I believe that when a child like Shay, who was

mentally and physically disabled comes into the world, an opportunity to

realize true human nature presents itself, and it comes in the way other

people treat that child.'

Then he told the following story:

Shay and I had walked past a park where some boys Shay knew were playing

baseball. Shay asked, 'Do you think they'll let me play?' I knew that most

of the boys would not want someone like Shay on their team, but as a

father I also understood that if my son were allowed to play, it would

give him a much needed sense of belonging and some confidence to be accepted by others

in spite of his handicaps.

I approached one of the boys on the field and asked (not expecting much) if

Shay could play. The boy looked around for guidance and said, 'We're losing

by six runs and the game is in the eighth inning. I guess he can be on our

team and we'll try to put him in to bat in the ninth inning.'

Shay struggled over to the team's bench and, with a broad smile, put on a

team shirt. I watched with a small tear in my eye and warmth in my heart.

The boys saw my joy at my son being accepted.

In the bottom of the eighth inning, Shay's team scored a few runs but was

still behind by three.

In the top of the ninth inning, Shay put on a glove and played in the right

field. Even though no hits came his way, he was obviously ecstatic just to

be in the game and on the field, grinning from ear to ear as I waved to him

from the stands.

 

In the bottom of the ninth inning, Shay's team scored again.

Now, with two outs and the bases loaded, the potential winning run was on

base and Shay was scheduled to be next at bat.

At this juncture, do they let Shay bat and give away their chance to win the

game?

Surprisingly, Shay was given the bat. Everyone knew that a hit was all but

impossible because Shay didn't even know how to hold the bat properly, much

less connect with the ball. However, as Shay stepped up to the plate, the pitcher, recognizing that the other team was putting winning aside for this moment in Shay's life, moved in a few steps to lob the ball in softly so Shay could at least make contact.

The first pitch came and Shay swung clumsily and missed.

The pitcher again took a few steps forward to toss the ball softly towards

Shay. As the pitch came in, Shay swung at the ball and hit a slow ground ball

right back to the pitcher.

The game would now be over.

The pitcher picked up the soft grounder and could have easily thrown the

ball to the first baseman.

Shay would have been out and that would have been the end of the game.

Instead, the pitcher threw the ball right over the first baseman's head, out

of reach of all team mates.

Everyone from the stands and both teams started yelling, 'Shay, run to

first! Run to first!'

Never in his life had Shay ever run that far, but he made it to first base.

He scampered down the baseline, wide-eyed and startled.

Everyone yelled, 'Run to second, run to second!'

Catching his breath, Shay awkwardly ran towards second, gleaming and

struggling to make it to the base.

By the time Shay rounded towards second base, the right fielder had the

ball . The smallest guy on their team who now had his first chance to be the

hero for his team. He could have thrown the ball to the second-baseman for the tag, but he

understood the pitcher's intentions so he, too, intentionally threw the ball

high and far over the third-baseman's head.

Shay ran toward third base deliriously as the runners ahead of him circled

the bases toward home.

All were screaming, 'Shay, Shay, Shay, all the Way Shay'

Shay reached third base because the opposing shortstop ran to help him by

turning him in the direction of third base, and shouted, 'Run to third! Shay, run to third!'

As Shay rounded third, the boys from both teams, and the spectators, were on

their feet screaming, 'Shay, run home! Run home!'

Shay ran to home, stepped on the plate, and was cheered as the hero who hit

the grand slam and won the game for his team

'That day', said the father softly with tears now rolling down his face,

'the boys from both teams helped bring a piece of true love and humanity

into this world'.

Shay didn't make it to another summer. He died that winter, having never

forgotten being the hero and making me so happy, and coming home and seeing

his Mother tearfully embrace her little hero of the day!

 

 

A wise man once said every society is judged by how it treats it's least fortunate amongst them.

 

May your day, be a Shay Day.

 

While I love the optimism of New Year’s Resolutions, unfortunately, the enthusiasm and hope often fades within months, and our efforts at self improvement come to a whimpering end. New Year’s Resolutions usually fail because of a combination of some of these reasons:

1. We try to do too many resolutions at once, and that spreads our focus and energies too thin. It’s much less effective to do many habits at once (read more).
2. We only have a certain amount of enthusiasm and motivation, and it runs out because we try to do too much, too soon. We spend all that energy in the beginning and then run out of steam.
3. Resolutions are often vague — I’m going to exercise! — but don’t contain a concrete action plan and don’t use proven habit techniques. That’s a recipe for failure.
4. We try to do really tough habits right away, which means it’s difficult and we become overwhelmed or intimidated by the difficulty and quit.
5. We try to be “disciplined” and do very unpleasant habits, but our nature won’t allow that to last for long. If we really don’t want to do something, we won’t be able to force ourselves to do it for long.
6. Life gets in the way. Things come up unexpectedly that get in the way of us sticking with a habit.

What Can You Do Differently in 2010?

1. Focus on one habit change at a time, so your focus and energies are not spread thinly.
2. Implement the habit changes gradually, so you don’t run out of steam.
3. Start out really, really easily, so it is not intimidating.
4. Focus on enjoyable activities, so you don’t need “discipline”.

If you stick with the method, you’ll do much better than you’ve done in the past with New Year’s Resolutions. You’ll focus on creating long-lasting habits rather than trying to reach a short-term goal that fails. You’ll maintain your enthusiasm for longer and not become overwhelmed by the difficulty of change. You’ll have habits that will change your life, and that’s no small feat.

I have so many friends and family who are in debt, but continue to live life like there is no tomorrow. I know it is hard to recognise if you have a debt problem. Once you have, it can feel like the end of the world and panic measures set in so it's beneficial to spot the signs early on. Life will be different for a while. For example, can you only afford to make minimum payments on your credit or store card repayments? Do you regularly struggle to pay for your basic living costs (eg rent, mortgage, property taxes, utilities)? Does your list of income and expenditure shows that you have more going out than coming in?

If you recognise these signs, the obvious starting point is can you increase your income or reduce your spending?

On the income side, check that you are claiming your full entitlement to social security benefits and tax credits and that your tax code is correct. Also, consider whether you can increase your income through working additional hours or taking a part time job. Have a look in your attic and cupboards, you may be surprised with what's there giving you the opportunity to sell unwanted items for extra cash. many people have made a lucrative living from eBay.

On the expenditure side, look to see how to save on your mortgage, insurance, and utility costs by visiting some comparison sites on the internet. Similarly think carefully if you can you reduce your regular spending in areas such as housekeeping, clothing, and other personal spending. Question if they are all necessary. If you are paying your mortgage monthly....change immediately to at least a bi weekly payment. This small change will save you many thousands of Dollars.

After recognising that you do have a debt problem, one solution could be debt consolidation. This involves borrowing more money to repay existing debts with the payments on the new loan being less than you currently pay on your existing debts.

If you fully understand the implications of what you are doing and are able to access new borrowing at a low rate of interest, debt consolidation can be an effective approach to a debt problem. Alongside this you need to aim to bring your budget back under control, pay back any future credit card spending in full each month without fail and start saving for future unexpected or irregular costs.

However, be very careful, consolidating often lead to worsening debt and sometimes even potential homelessness. The reduction in monthly payments often comes at a heavy price. Paying back your debt through a new loan over a longer period may sound good but because of a reduced monthly payment, seeing how much you will have to pay back in total could be much more than you expected. Also, if you are a homeowner your consolidation loan is often secured against your house which means if you fall behind on your loan payments you risk losing your home!

Debt consolidation is a growing sector and companies vary significantly in their approach, so make sure that you do your homework and are dealing with a reputable organisation that explain all of the options open to you.

Finally, consider using some simple personal finance software that will keep the position with your personal finances up to date and should highlight debt issues early. The earlier the problem is identified the easier it will be to control.

It is never too late to recognize that you may be in financial difficulties or overwhelming debt. Speak to your bank to see how they can help. There is no time to ignore the problem or wait to win the lottery. Take action NOW!