Guide to Financial Success By Tamara Monell Maintaining a healthy mind, body & soul is important when it comes to having stability in all aspects of one’s life. This includes financial decisions we make on a daily basis. The better choices you make the less stress you will have.

I. Think & Feel Positive – The less stress we have on a daily basis the more we are able to make decisions that lead to successful results. One has the start with the way we think and feel about things we deal with in our lives. Remember to always take care of your mental health so that your mind is clear and free of negative thinking that will lead to bad decisions making. Maintaining a healthy mind set will also lead to better physical health.

A. Starting your day with a positive attitude - It is important to always be positive before getting into anything you plan or not for the day. Being positive always helps you maintain focused, motivated and full of energy towards carrying out your goals. Staring your day with a positive attitude will also help you maintain calm if and when things get stressful.

B. Be realistic with yourself - Know that part of planning something is also expecting things not to go as planned. Learn from your mistakes and move on. This skill is useful when managing one’s finances, as you will learn to better handle the situation.

C. Learn to relax - always make time to relax your mind & body as much as possible. 5-30 minutes 3-5x per week engaging in to whatever activity you find relaxing will help you maintain good mental health. Being able to maintain calm when making financial decisions will always be a benefit for you!

D. Have confidence in yourself - If you do not believe you can do something there is no point in doing it at all. So make sure you have enough confidence to trust your decisions especially with your finances as this will help you reach the financial success you desire.

II. Feel Good, Look Good - It is also important to remember that image isn’t everything, but it is also true that working on your physical appearance is a positive first step in working on to have a successful financial life.

A. Eating & Drinking Right – We’re not saying that you need to be a health nut, but it is important for you to be involve in a healthy eating program that will help prolong your life. After all, the longer you live, the longer you can enjoy your financial success.

B. Activities & Exercise – Once again we’re saying that you need to be a on some extreme exercise program, but you should involve yourself in activities that will help

C. Skin, Hair & Nails – You don’t need any big budget makeovers or it doesn’t matter if you like to experiment with different styles and colors, but keeping yourself well groomed is a basic organizational skill that will help you get use to having your financial life organized.

D. Clothes, Shoes & Accessories - Try to be a smart shopper & spend your money wisely. There are always sales throughout the year that one can benefit from. Always have a budget and limit of what you can afford to avoid overspending. Shopping at big department stores always helps to find good prices.

III. Inform, Protect & Invest in Yourself

A. Inform Yourself - Knowing and understanding what you are getting into always makes it easier for you to do. Your level of stress will also be under control.

1.You must want financial success- No one can force you into wanting to be financially successful. You have to want it and you have to work to be financially successful. Having a clear picture of what you are setting out for always makes it easier to accomplish.

A. Be in control – If YOU want to be financially successful, YOU must do the research and only you can make the best decision for YOURSELF.

B. Don’t be afraid of money – You are in charge. You make the money. You don’t have to do anything you don’t want to do. Before you make a decision make sure it is the best decision.

C. Be a hustler, not a customer – Don’t believe anything until you see it. Don’t believe everything you see. If your going to do business with a company or a person you should try to know as much as that company or person in the business your getting into.

2.Knowledge is Power- Know what you owe and where you can make some money. The more you know the better prepared you are as you will have less questions about whatever information you need.

a. It’s ok to say, “I don’t know, but I’m going to try to find out.”

b. Try to get as much details as you can before making a decision

c. Try to carefully review and fully understand your details before making a decision

3. Assets = Liabilities + Owners’ Equity – Assets are the value of "equity" plus "liabilities." The term "equity" describes the value of the things you own and the term “liability” describes the value of a present obligation you owe.

a. Acquire as many assets as possible – It is important to remember to in order to be financially successful you have to acquire as many assets as possible. You must keep liabilities at a minimum because many times the interest rates on your liabilities can eat away at the value of your equity.

b. Liabilities acting as assets – It is also very important to be aware of the liabilities that act as assets. Many times people see buying a new home as increasing their asset value. But the reality is that your asset value can somewhat still be the same since your home is an increase in equity and the mortgage loan you used to get the home is an increase in your liability. So be aware that acquiring thing is not always an increase in your asset value.

c. Assets as Income – Many times you can find assets that can be a great source of income. It is very important to remember that some liabilities act as assets when you are looking for an asset that can make you income.

d. Protect Yourself - Remember it is very important that you are financially protected. Always consider how you are benefiting & protecting your from the results of the decision you are making. Take your time to think things through and select the best services based mostly on the benefits it will provide you.

1.Will & Testament – A Will gives you full control over such issues as who gets your property, who will be the guardian of your children, who will manage your estate upon your death, who will inherit assets that you haven't left to anyone else and other issues relating to the management and distribution of your estate. The importance of a Will cannot be understated. A Will is perhaps the most important legal document the average person will ever have.

2.Savings/Checking Accounts & CDs – If you need a safe place to keep money, a bank account is often the best choice. Banks offer different kinds of accounts for different purposes. With a Savings and Checking account you can put your money in a safe place and still have easy access to it in case you need it. With a Checking Account your even giving checks so you can pay other people with the money you put in your bank account. A CD or Cash Deposit is the same but with a CD you actually let the bank hold a certain amount of your money for a certain period of time.

3.Life & Health Insurance – Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. Health insurance is a type of insurance whereby the insurer pays the medical costs of the insured if the insured becomes sick due to covered causes, or due to accidents. The insurer may be a private organization or a government agency. Market-based health care systems such as that in the United States rely primarily on private health insurance.

4.Auto & Home Insurance – Vehicle insurance (or auto insurance, car insurance, motor insurance) is insurance people can purchase for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents. An insurance company may declare a vehicle totally destroyed ('totaled' or 'a write-off') if it appears replacement would be cheaper than repair. Home insurance, also commonly called hazard insurance or homeowners insurance (often abbreviated in the real estate industry as HOI), is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

C. Invest Yourself - Looking to invest your money properly is knowing how to protect you and your family. Use your knowledge and act now so that you can benefit now and in the future. Find out what services are best for you. Take time to know what you can and are getting yourself into. Don’t be afraid to ask questions no matter how stupid you think they may be and take time to get those questions you have answered.

1.Traditional & Roth IRAs - A traditional IRA is an individual retirement account (IRA) in the United States. The IRA is held at a custodian such as a bank or brokerage, and may be invested in anything that the custodian allows (for instance, a bank may allow certificates of deposit, and a brokerage may allow stocks and mutual funds). Unlike the Roth IRA, the only criterion for being eligible to contribute to a Traditional IRA is sufficient income to make the contribution. However, the best provision of a Traditional IRA — the tax-deductibility of contributions — has strict eligibility requirements based on income, filing status, and availability of other retirement plans (mandated by the Internal Revenue Service). Transactions in the account, including interest, dividends, and capital gains, are not subject to tax while still in the account, but upon withdrawal from the account, withdrawals are subject to federal income tax (see below for details). This is in contrast to a Roth IRA, in which contributions are never tax-deductible, but qualified withdrawals are tax-free. The traditional IRA also has more restrictions on withdrawals than a Roth IRA. With both types of IRA, transactions inside the account (including capital gains, dividends, and interest) incur no tax liability. Here is a 401(k) versus IRA matrix that compares various types of IRAs with various types of 401(k.A Roth IRA is an individual retirement account (IRA) allowed under the tax law of the United States. Named for its chief legislative sponsor, U.S. Senator William V. Roth Jr. of Delaware, a Roth IRA differs in several significant ways from other IRAs.

2.Stocks, Bonds & Mutual Funds – A stock is the capital raised by a corporation or joint-stock company through the issuance and distribution of shares. A person or organization which holds at least a partial share of stocks is called a shareholder. The aggregate value of a corporation's issued shares is its market capitalization. A bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity. Other stipulations may also be attached to the bond issue, such as the obligation for the issuer to provide certain information to the bondholder, or limitations on the behavior of the issuer. Bonds are generally issued for a fixed term (the maturity) longer than ten years. U.S Treasury securities issue debt with life of ten years or more, which is a bond. New debt between one year and ten years is a note, and new debt less than a year is a bill. A mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.

3.Independent Businesses - In business, an independent business as a term of distinction generally refers to privately owned companies (as opposed to those companies owned publicly through a distribution of shares on the market). Independent businesses most commonly take the form of sole-proprietorships. "Independent" is frequently used to distinguish one-of-a-kind businesses from corporate chains, indeed dozens of communities have organized Independent Business Alliances to help distinguish independent businesses from chains. Other terms of distinction used in addition to independent businesses include small business, locally owned business and startup business, which have varying subtleties of distinction.

4.Real Estate - Real estate or immovable property is a legal term (in some jurisdictions) that encompasses land along with anything permanently affixed to the land, such as buildings. Real estate (immovable property) is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personality). However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from real property, referring to ownership rights over real estate. IV. Other People’s Money – Always remember lines of credit are not paychecks. A line of credit is money that must be paid back with interest. You must always be aware of the real numbers in the deal you are getting into so that when you borrow money you are comfortable with the payment options that are available to you.

A. Credit Card - A credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.

B. Auto Loan - In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer.

C. Home loan - A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security - a lien on the title to the house - until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

D. Debt Management Plan – A Debt Management Plan (DMP) is a method used in various countries for paying personal unsecured debts (which typically have gotten out of control in the sense of payments due taking too large a portion of income, or even exceeding it) that involves cataloguing all the debts, assessing income and budget, and re-negotiating interest rates and payments with the lenders, based upon evidence that the result will be a higher likelihood of collection by the lenders. A third party group typically manages a DMP. There are two types of DMPs. The first type is a fair disbursement of available funds from the debtor to their creditors based on a percentage of debt. For example, if a debtor has 100 monetary units available each month for debt repayment and Creditor A is 25% of his overall debt and creditor B is 75% of his overall debt then Creditor A would receive a fair and balance percentage of available fund. In this case Creditor A would receive 25 and Creditor B would receive 75. Typically the debtor pays the group managing this for them for their service. The second type of DMP is typically run by consumer credit counseling service groups that are funded by creditors to collect and distribute money. In this model, repayment plans are developed by creditors telling the groups what the creditor requirement is and rewarding the group by paying them a percentage of funds collected from debtors and sent to creditors.

Tamara A. Monell, LMHC